Acter Group Co., Ltd. (hereinafter “Acter*”, Ticker: 5536 TT) announced Nov. 2023 revenue. On a consolidated basis, the group’s Nov. 2023 revenue increased 11% MoM, decreased 24% YoY, respectively to NT$2.24 billion. The accumulated revenue for the first eleven months of 2023 decreased by 11%, reaching NT$22.69 billion. After a rapid growth period, Acter* has indicated that it is entering a plateau phase, emphasizing the effective management of orders. The completion of the recognition for previous low-margin projects, affected by material costs, inflation, and wage increases, has resulted in an enhancement of future gross profit margins. Acter* is actively mitigating risks by pre-ordering raw materials and minimizing volatility. Furthermore, there is a noticeable shift towards single large-scale projects for major clients, which bodes well for maintaining profit margins, particularly in the face of shorter project durations.

New order momentum remains healthy, with minimal impact from China's economic conditions. This is largely attributed to China's continuous promotion of specific industries such as semiconductors, EV, green energy, and more. Numerous projects are currently in the discussion phase, awaiting contract signing. Acter* actively mitigates risks by diversifying, having cultivated a strong presence in Southeast Asia for several years. Acter* has established bases in Vietnam, Thailand, Malaysia, Singapore, and Indonesia, demonstrating a thorough understanding of local legal, cultural, and linguistic nuances. By adhering to legal standards and aligning with customer expansion needs, the company anticipates a promising future in the Southeast Asian market, driven by the global supply chain restructuring. In line with international trends, Acter* strategically shifts its focus to Southeast Asia, actively exploring new opportunities in previously uncharted territories. Throughout this year, the effectiveness of diversified efforts has become increasingly apparent, with an accumulated backlog reaching a substantial NT$34 billion. The proportion from China has declined from 40% in the second quarter to 36%. Meanwhile, the share from Southeast Asia has risen to 10%. With customers in that region actively establishing factories, driving the demand for electrical and mechanical facilities, it is poised to become the primary source of growth in the future.

Looking into 2024, the trend of advanced packaging continues, and Acter* is set to be the strongest support for packaging and testing manufacturers. The visibility into future factory constructions is high. Additionally, many existing factories currently lag behind international standards. In the future, there will be a shift towards high value, low energy consumption, and low pollution models, creating opportunities for re-layout. Customers will review warehouse space utilization and layout methods, assessing whether they align with existing operational workflows, aiming to reshape the optimal space efficiency and operational effectiveness. Acter* is actively expanding its footprint, cultivating operational momentum to sustain long-term stable and profitable operations.

As demonstrated in the 28th Conference of Parties (COP28) of the United Nations Framework Convention on Climate Change, achieving net-zero emissions is imminent. Leveraging its expertise in green engineering, Acter* is actively translating environmental sustainability issues into practical solutions. The company is committed to assisting clients in integrating green sustainability concepts into their operations through ESG technological modules and tools. By doing so, Acter* aims to provide clients with a broader range of services aligned with green sustainability principles. In its role as a driver in green engineering, Acter* collaborates with clients, working together towards the shared vision of sustainability.

*The number is unaudited.

Acter* Monthly Sales (Nov. 2023)：                         

Unit: NTD thousand；%

2023 Dividend Semi-Annual Payout Schedule (par value NT$5/share)

The company's par value per share is NT$5. If converted to 10 par value per share, the distribution is equivalent to NT$9 in cash dividends.

IR Contact:

Acter                Jeff Liang   (04)2258-1516  IR@acter.com.tw

IPR Advisors   Tim Chen   (02)2758-0339  ir@ipradvisors.com