Chicony's Q1 Earnings Rebound; EPS Increases 92% QoQ to NT$2
Chicony Strictly Controls Operating Expenses; Q1 EPS at NT$2.00
Chicony Electronics (2385), a leading global electronic components manufacturer, today (May 11th) announced its financial results for Q1 2026. Revenue reached NT$22.871 billion, only slightly lower than the previous quarter. In the absence of interference from one-time factory consolidation expenses, profit rebounded significantly compared to the previous quarter. Net profit after tax was NT$1.456 billion and EPS was NT$2.00, representing quarter-on-quarter increases of 93% and 92%, respectively. Gross margin was 16.1%, and the operating expense ratio of 8.6% was the lowest in 16 quarters; consequently, the operating margin was 7.5%, an increase of 0.8 percentage points quarter-on-quarter, while the net margin was 6.4%, an increase of 3.1 percentage points quarter-on-quarter.
Strong Shipments of Commercial Models Drive Q1 LED-Backlit Notebook Keyboard Penetration Rate; Notebook Camera Modules See Growth in Both Price and Volume
Amid the trend of memory shortages and rising component prices, PC shipments this year have continued to develop toward higher-value products. Shipment momentum for commercial models has been robust, outperforming consumer models, which resulted in the penetration rate of LED-backlit notebook keyboards remaining at a historical high of 52% in Q1, marking the second consecutive quarter that the penetration rate of LED-backlit notebook keyboards has exceeded 50%. In addition, keyboards for Tablet & 2-in-1 devices also delivered a stellar performance in Q1, with active pull-in from customers and double-digit year-on-year growth. Chicony is optimistic that the keyboard product mix will improve this year, and the penetration rate of LED-backlit notebook keyboards is expected to gradually rise.
Notebook camera modules also benefited from the trend of high-value PC development. In Q1, revenue from notebook camera modules achieved mid-single-digit year-on-year growth, exhibiting increases in both price and volume. Chicony believes that under the trend of an increasing proportion of commercial PC shipments, notebook image modules are expected to maintain high specifications, which is conducive to maintaining a high average selling price.
Comprehensive Layout of Edge AI Vision Image Products; Commercial Smart Video Products Show Strong Performance in Q1
While Q1 coincided with the traditional off-season for shipments of imaging consumer products, demand for commercial smart video products remained robust, achieving double-digit growth primarily due to aggressive pull-in from customers. This year, Chicony has developed a series of products in Edge AI Vision, primarily categorized into four major fields: smart security, smart video, smart automotive, and smart wearables, with smart security providing the largest contribution to revenue. All Edge AI Vision image products are produced in Thailand, fully leveraging cost advantages to stimulate profitability.
In terms of smart security, shipments have been successfully made to several European and American brand customers. In addition to supplying surveillance product hardware, Chicony also empowers products with AI, with functions covering general video surveillance as well as audio analysis. Within security systems, it further enables users to use natural language to search video data stored across several cameras in the system. For example, personnel and vehicle analysis can be performed, and even list management can be conducted; when strangers or unfamiliar vehicles appear frequently, the system will automatically notify the administrator. AI-powered video security systems can also perform real-time searches for the complete movement paths of people and vehicles. In addition to general inquiries, these functions can be applied to retail or warehousing for operational intelligence analysis, assisting in the optimization of space allocation and manpower scheduling. They can also be applied to anomaly detection; after the system automatically learns environmental patterns, it will issue alerts for unusual movements or sounds, and even extend to proactive AI deterrence. For example, when the system detects abnormal behavior such as loitering, it can automatically trigger AI-generated voice warnings to deter intruders before reporting to the police, thereby reducing the burden on security personnel. Chicony's commercial surveillance products within the smart security segment achieved double-digit year-on-year growth last year, and the company remains highly optimistic regarding the revenue contribution from these products this year.
Chicony today announced its unaudited consolidated revenue for April was NT$7.273 billion, and the cumulative unaudited consolidated revenue from January to April reached NT$30.144 billion. Due to the general increase in raw material prices, Chicony has implemented a price adjustment plan since Q1, which is expected to be gradually reflected in Q2 revenue. Institutional investors believe that with reasonable price adjustments and a steady increase in orders, Chicony's Q2 revenue is expected to achieve a slight quarter-on-quarter increase, striving for stable profit growth.
Chicony's EPS for last year was NT$9.05, with a cash dividend payout ratio of 80%. The company expects to distribute a cash dividend of NT$7.2 per share this year to reward long-term shareholders. Based on the closing price of the previous day, the cash dividend yield is 5.4%. The shareholders' meeting is scheduled to be held on May 28.
