Asustek Computer saw its net profits jump 119% on year to a record high of NT$26.56 billion (US$938 million) in 2020, thanks to pandemic-driven demand.
Asustek's consolidated revenues from the brand business reached NT$113.71 billion in the fourth quarter of 2020, down 4.93% sequentially, but up 27.35% on year, while net profits came to NT$9.85 billion, down 6.29% sequentially, but up 273.13% on year.
For whole-year 2020, consolidated revenues from Asustek's brand business were NT$382.44 billion, up 15% on year with gross margin at 17.18%, up 3.74pp on year. EPS arrived at NT$35.80, up from 2019's NT$16.30 to reach the highest-ever annual level. The company had non-operating profits of NT$8.34 billion and an income of NT$3.22 billion from currency exchanges.
Although the pandemic is gradually easing, end demand for IT products remains robust and the biggest challenge that Asustek is facing currently is the short supply of components, according to Asustek's co-CEOs Samson Hu and SY Hsu.
As many component suppliers have raised their product quotes, Asustek will also adjust its product prices to reflect the extra costs. Graphics card prices have already gone up 10-20% recently and are likely to continue rising, they said.
Hu pointed out that PC shipments will remain strong in 2021 with the first quarter being the bottom of the year. The company's PC shipments will slip around 10% sequentially in first-quarter 2021, but increase 70% on year, while shipments of components will drop 5-10% sequentially, but grow 50% on year.
Global PC shipments are expected to rise 10-15% on year in 2021, while Asustek will enjoy a growth of more than 20%, Hu added.
Asustek had notebook short supply of 30% in the fourth quarter of 2020 and the percentage will be around 25-30% in the first quarter of 2021.
Asustek's profits surged in 2020
Photo: Digitimes file photo
