Highlights

In the past year, Donji achieved a historic high gross profit margin of 28.46%. Despite a 5% decrease in post-tax net profit, the company maintained a robust performance, with an EPS of 5.3 NT dollars. Key product lines showed significant demand, particularly in voice coil motor sectors with over 60% and 10% annual revenue growth, reflecting strong market needs.

Sentiment Analysis

• Overall, the sentiment towards Donji's financial performance reflects a cautiously optimistic outlook. The manufacturing sector continues its growth momentum, contributing substantially to profitability.
• The decline in specific older product lines, such as optical pickup units, has a minimal impact on overall profit due to their lower margin nature.
• Future strategies suggest a steady path towards expanding and enhancing the company's offering in the manufacturing domain.

Article Text

Donji, a prominent player in the manufacturing industry, released its financial outcomes, revealing a towering gross profit margin of 28.46% for the past year. This formidable achievement signifies a new peak in the company's history, despite a nuanced 5% year-on-year reduction in net profits after tax, settling at 5.74 billion NT dollars. The earnings per share (EPS) stood firmly at 5.3 NT dollars, underscoring the fiscal strength of Donji.

During the final quarter, Donji reported revenues of 1.225 billion NT dollars, down by 8% from the previous quarter and 35% year-on-year. However, the quarterly gross margin was healthy at 28.3%, marking a modest decline of 8.68 percentage points from the last quarter but showing a significant annual rise by 5.06 percentage points. The operating profit margin hit 14.82%, displaying sound growth despite a quarterly dip but reflecting a 2.44 percentage point increase year-on-year. Achieving a net profit of 123 million NT dollars for the quarter, each share yielded 1.08 NT dollars in earnings.

Annually, Donji's revenue dropped by 30% to 5.169 billion NT dollars. Yet the gross margin uplifted by 8.88 percentage points, a testament to the solid year-over-year enhancement in operating efficiency.

The strategic focus on manufacturing has proven instrumental, with the revenue share from this business unit scaling to 55%, contributing to 75% of overall profits. The demand for voice coil motors remained solid, evident in the over 60% year-over-year revenue growth in surface mount technology deliveries, substantiating the enduring demand.

Meanwhile, the decline in optical pickup units reflected a noticeably larger 1.8 billion NT dollar impact on revenues due to technological advancements and market lifecycle transitions. However, the overall impact on profitability was minimal because of their lower margins.

Testing services, particularly electromagnetic compatibility assessments, were another highlight, with revenue jumping over 20% and significantly bolstering the overall validation sector with 8% growth in revenue and 9% in profits, year-on-year.

Looking forward, Donji aims to expand their economic scale through developing the manufacturing arm further by augmenting relay processing items and commencing mass production of LY-type relays. Additionally, the company focuses on increasing the product value through the production capability of integrated voice coil motor components, alongside developing new products to improve market share.

Key Insights Table