CDW Holding BXE says it expects to report a “significant improvement” in its consolidated profit for the FY2022 ended Dec 31, 2022.
The higher profit is attributed to the improvement in its LCD backlight units and LCD parts and accessories segment. The group’s total delivery volume of LCD backlight units improved y-o-y due to the low base in the year before as its backlight unit productions were temporarily suspended in April and May 2022 due to Covid-19 restrictions in Shanghai.
In addition, more than 50% of the group’s LCD backlight units delivered during the year were for larger automotive digital instrument panels (over 10-inches), compared with 33% in the prior year.
As the US is expected to recover from the Covid-19 pandemic, CDW Holding also received “substantial” orders for mobile payment devices for its original equipment manufacturer business under the LCD parts and accessories segment. Orders for advanced model payment devices has enhanced the performance of this segment, says the group.
In addition, the group is expecting to recognise a gain on disposal on its previously-held 48.46% stake of ABio of 12.67 billion Korean won ($13.1 million). The group is also expecting to recognise a goodwill amount of around 17.51 billion Korean won.
The amount is “the excess of the sum of the consideration transferred and the fair value of the group’s previously held equity interest in ABio, over the net fair value of the identifiable assets acquired and the liabilities assumed and the amount of non-controlling interests in ABio [as at its acquisition date on April 4, 2022],” says the group.
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The fair value assessment of ABio shares is still being determined.
The group will announce its results on March 1.
As at 4.51pm, shares in CDW Holding are trading 1.5 cents higher or 6.25% up at 25.5 cents.
