ABCATEC held the first quarter legal conference on May 26, from left to right, respectively spokeman and executive vice president Tommy Hsu and chairman  Joseph Hsu with General Manager Francis Fan. ABC-ATEC

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On May 26, ABC-ATEC, a major manufacturer of inductive components, held the first quarter of 2023 investor's conference, which was attended by Chairman Joseph Hsu, General Manager Francis Fan, and Executive Vice President and Spokesman Tommy Hsu, and explained ABC's recent expansion plan, market changes and future prospects.

Although there was a decline in the first quarter financial report, the proportion of automobiles increased

ABC's revenue in the first quarter of 2023 was NT$630 million, a decrease of 12.67% compared with the fourth quarter of 2022, a decrease of 10.88% compared with the first quarter of 2022, and a gross profit margin of 23.33%, compared with 17.90% in the same period of 2022, a considerable increase, but a slight decline compared to 26.76% in the previous quarter. EPS was $0.35 in Q1 2023, $0.56 in Q4 2022 and $0.32 in Q1 2022.

For the performance of the first quarter, Tommy Hsu pointed out that ABC did feel that the overall environment was not good, resulting in a decline in market demand, so the company has made considerable efforts to improve cost control and production efficiency, he said frankly, although the first quarter felt the overall demand declined, but the proportion of automobiles increased from 12% in the past to 15%, plus the profitability is also good, for the overall gross profit margin performance also has the effect of stabilizing the team inspiration. In fact, all of ABC's factories have passed the automotive specification certification, and there has been a lot of cooperation with traditional European car factories in the past, as far as ABC observes, the industrial changes in the automotive industry are relatively stable compared with consumer electronics and other industries, and the profits are also higher, so ABC will continue to adjust the product portfolio and optimize financial performance.

In response to the demand for automobiles, Qianru will actively expand the U.S. market

Regarding the recent topic of electric vehicles, Tommy Hsu also pointed out that at present, traditional European car manufacturers do have the intention to develop electric vehicles, and ABC also closely cooperates with existing customers to cooperate with the product strategy of car manufacturers.

Chairman Joseph Hsu also mentioned that it can be seen from the financial report that the European market accounts for a considerable proportion of ABC, but ABCs eyes have also begun to move to the traditional car manufacturers in the United States. According to the data of ABC's Investor conference, the United States accounted for 16% of ABC's annual revenue in 2022, and the European market accounted for 45%. Joseph Hsu believes that due to geopolitical relations, the U.S. Senate and House of Representatives have passed the electric vehicle subsidy bill for domestic car manufacturers, and the trends in related regions such as Detroit, Michigan and even the Great Lakes in the United States are worthy of close observation by the industry.

General Manager Francis Fan also added that in fact, as long as there is a power-on application, ABC's inductive products can come in handy, in addition to electric vehicles, both traditional car manufacturers in high-end cars are also constantly upgrading electronic functions, such as power windows and even ADAS, etc., ABC has participated. He also said that at present, ABC has also begun to show itself in the second tier of Japanese automobiles, so the next step is to develop into the American market, so that European, American and Japanese car manufacturers can have ABC's product line imported, in addition, ABC's product line can also be based on customer needs, corresponding to different circuit designs, and provide customized services and products to respond.

For the report of the Electronic Times Science and Technology Network, please click the following link
千如電機發布第一季財報 因應車用需求將採全球布局策略