Major Edge AI Order Secured: SINTRONES' Performance Soars, Projected to See Leap-Frog Growth in Operations This Year and Next

 

Source: 邊緣AI大單到手，鑫創電子業績衝，今、明兩年營運跳躍式成長 (yahoo.com)

Original News Issued Date: 30 August 2024

 

What to learn from this article:


“SINTRONES’ overview for H1 2024”

“Which industry sectors contributed to SINTRONES' performance.”

“How did SINTRONES achieve such impressive growth.”



After navigating a sluggish market, industrial computer manufacturer SINTRONES is experiencing significant growth in the second half of this year, with notable gains in its In-Vehicle Systems and Edge AI projects. The company anticipates both monthly and quarterly performance increases, targeting double-digit revenue growth for the year. Additionally, SINTRONES has secured a major European project for railway AI foreign object detection, which is expected to start contributing to revenue from the second quarter of 2025. To support its expansion, the company issued NT$350 million (US$10.89 million) in domestic convertible bonds, with a conversion price of NT$76.2 (US$2.37). The fundraising was recently completed, and the bonds were listed on September 2, 2024. Furthermore, SINTRONES' new headquarters in New Taipei City, Taiwan will feature its own production line, with operations slated to commence by the end of the year.

 

Despite a slow market, SINTRONES achieved over 6.5% revenue growth in the first half of the year, reaching NT$286 million (US$8.90 million). The gross margin improved by nearly 3 percentage points year-on-year, climbing to 33.55%. However, due to increased expenses, earnings per share (EPS) decreased slightly to NT$1.33 (US$0.041), compared to NT$1.38 (US$0.043) in the same period last year.

 

That being said, the company's growth is concentrated in the second half of the year. With the market gradually recovering and an increase in ongoing projects, significant shipments are expected to commence in August, which is anticipated to drive strong performance. July's revenue was NT$43 million (US$1.34 million), marking a 38% decrease month-on-month and a 31% decrease year-on-year. For the first seven months, cumulative revenue reached NT$329 million (US$10.24 million), reflecting a slight year-on-year decline of 0.5%.

 

Kevin Hsu (許育瑞), Chairman of SINTRONES, stated that this year's growth momentum is driven by the company's existing in-vehicle system business and its edge AI business. In addition to its established expertise in in-vehicle systems, the edge AI business has now become a crucial second pillar of operational growth. In the first half of this year, in-vehicle systems accounted for 60% of the business, edge AI for 30-35%, with the remainder coming from the automation sector.

 

Regarding SINTRONES' edge AI projects, European charging station orders have significantly boosted the company’s business this year. The company has also entered the AI visual field, securing a project with Rolex, which marks a key milestone in its development of the luxury market. Additionally, SINTRONES has landed a major project for a European railway foreign object detection system. This project involves integrating NVIDIA’s high-end commercial GPUs and Intel’s i7 and i9 processors, installed at the front of locomotives to detect foreign objects on any track section at any time, greatly enhancing railway safety. The project is expected to start contributing to the company’s performance from the second quarter of next year.

Due to strong shipping momentum in the second half of the year, analysts estimate that SINTRONES' third-quarter revenue may challenge historical records. The company's annual revenue is projected to achieve double-digit growth compared to last year, potentially reaching a record-high NT$700 million (US$21.79 million). With major orders set to arrive next year, the company is poised to continue reaching new heights.