The results of Adlink Technology’s (6166) focus on the internet of things (IoT) and the automation market has continued to appear. Adlink chairman Jim Liu pointed out, this year’s industry layout has come to an end and benefits will begin to appear. Robotics will be the most visible key to growth and Adlink already ships the most robotics controllers among the world’s industrial PC (IPC) companies. The company is confident in being counted among the world’s top three IPC companies within two years. Institutional investors point out, driven by the IoT trend and in concert with benefits emerging from the merger of German embedded computer company LiPPERT and medical equipment manufacturer PENTA, Adlink will maintain double-digit growth this year estimated at between 15% to 20%.
Benefiting from surging interest in robotics, industry operations have grown by leaps and bounds. According to statistics, Adlink’s robotics controller shipments in the top half of this year have already double last year’s totals. The company is expected to surpass NT$100 million in revenue this year in robotics alone, quadrupling last year’s results. Prospects in the next few years look very good.
Liu recently pointed out at the company’s shareholders meeting, in terms of robotic controller shipments, Adlink is already number one among world IPC companies and all major global robotics companies are Adlink’s customers. It is understood that Adlink currently possesses three primary robotics customers including Japan’s Epson and Toyota and ABB in Europe. Adlink has worked with Epson the longest and shipments have soared quickly in the last two years. Shipments to the other two companies remain at the limited volume stage.
In addition, benefiting from a rebounding global economy and aggressive stocking by U.S. and European telecoms and gaming customers, Adlink posted impressive results in June. Single month consolidated revenue was NT$749 million for an annual growth rate of 24.28% and the second highest level in company history. Cumulative January to June 2014 consolidated revenue was NT$3.92 billion, growing 23.89% compared to NT$3.16 billion in the same period last year. Single quarter consolidated revenue surpassed the NT$2 billion threshold at NT$2.25 billion, growing significantly by 35% on the previous quarter, 24% on the year, and setting a new single quarter revenue record.
Adlink is a domestic company that has focused on robotics for a long period of time. Visual guidance and motion control have been the company’s primary areas of development for many years. Adlink stated, at the end of this month the company will launch a self-developed robotic visual guidance program in collaboration with the Industrial Technology Research Institute (ITRI) and introduce an industry leading new robotic vision product, a next-gen x86 Smart Camera.
Adlink will hold an investors conference for the top half of the year on July 29. In addition to disclosing and expounding on the semi-annual report and laying out future operating prospects, the company will announce its blueprint for the future of the smart automation and robotics industry, illustrate smart automation opportunities in the global market, and the integration of robotic vision and the robotics market.
According to CLSA’s latest report, Adlink is Taiwan’s second largest IPC manufacturer. CLSA is bullish on Adlink benefiting from the growing IoT trend. Adlink’s rising robotic product market share and new growth momentum from mobile IPCs will help the company’s compound annual growth rate for revenue from 2014 to 2016 to reach 20%, beating the industry average of 10% to 15%, and the company’s compound annual growth rate for EPS from 2014 to 2016 to reach 33%. CLSA included Adlink as part of tracked stocks for the first time and issued a “buy” rating with a target price of NT$92.