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Asustek Computer Inc. Sponsored GDR RegS (ASUUY)
OTHER OTC:ASUUY
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Asustek Computer Inc. Sponsored GDR RegS
(OTC:ASUUY)
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Rating:75Outperform
Price Target:
$118.00
▲(4.07% Upside)
Asustek Computer Inc. scores well due to its strong financial performance and attractive valuation. The earnings call provided positive guidance, although technical indicators suggest short-term caution. The company's robust dividend yield and reasonable P/E ratio enhance its investment appeal.
Asustek Computer Inc. Sponsored GDR RegS (ASUUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.53B
Dividend Yield5.7%
Average Volume (3M)23.00
Price to Earnings (P/E)13.6
Beta (1Y)0.57
Revenue Growth25.11%
EPS Growth13.12%
CountryUS
EmployeesN/A
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)2.20
Shares Outstanding148,552,000
10 Day Avg. Volume0
30 Day Avg. Volume23
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.14
Enterprise Value/Ebitda0.28
Forecast
1Y Price Target
$118.00Price Target Upside4.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Asustek Computer Inc. Sponsored GDR RegS Business Overview & Revenue Model
Company DescriptionAsustek Computer Inc., commonly known as ASUS, is a Taiwanese multinational company that operates in the computer hardware and electronics sectors. Founded in 1989, ASUS is renowned for its innovation and quality in producing a diverse range of products, including laptops, desktops, motherboards, graphics cards, monitors, networking equipment, and mobile devices. The company has established itself as a leader in the technology industry by continuously advancing its product offerings to meet consumer and professional needs worldwide.
How the Company Makes MoneyASUS generates revenue primarily through the sale of its computer hardware and electronic products. The company has a strong presence in the consumer electronics market, with laptops and desktops being significant contributors to its income. Additionally, ASUS capitalizes on its reputation as a leading manufacturer of motherboards and graphics cards, which are in high demand among PC enthusiasts and gamers. The company also diversifies its revenue streams by offering peripherals and accessories, including monitors and networking equipment. Strategic partnerships with technology firms and distributors enhance its market reach and contribute to sustained earnings. ASUS's commitment to research and development enables it to innovate and maintain a competitive edge, further solidifying its financial performance.
Asustek Computer Inc. Sponsored GDR RegS Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted ASUS's strong revenue growth driven by gaming and AI products, alongside successful innovations and expansions in product offerings. However, challenges from tariffs and exchange rate fluctuations affected profitability and margins. Despite these challenges, ASUS remains optimistic about future growth and resilience.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
ASUS achieved a record-high quarterly revenue of TWD 174 billion, marking a 29% quarter-on-quarter and 28% year-on-year increase. This growth was primarily driven by gaming products and AI-related products, both exceeding 40% year-on-year revenue growth.
Gaming Segment Success
Gaming products accounted for 48% of total revenue, growing 40% year-on-year. ASUS launched the ROG Xbox Ally line in partnership with Xbox, enhancing the handheld gaming experience.
AI Server Expansion
AI servers now make up over 15% of the server mix, with strong growth expected in the coming quarters. The launch of GB300 AI servers is anticipated to further expand ASUS' competitiveness in the server market.
Strong Non-Operating Income
ASUS reported total non-operating income of TWD 5.15 billion, including interest income of TWD 900 million, investment income of TWD 1.08 billion, FX gains of TWD 1.09 billion, and dividend income of roughly TWD 2 billion.
Innovations and Awards
ASUS won 41 Red Dot Design Awards and received several honors at Computex for product innovation across gaming and sustainability.
Negative Updates
Tariff and FX Challenges
Profitability was affected by tariffs and Taiwanese dollar exchange rate fluctuations, reducing the operating margin by approximately 0.5 to 2 percentage points.
Impact on Operating Margin
Tariff and FX impacts reduced the operating margin to 3.4%, below the target range of 4% to 5%.
AI Server Margins
AI servers, while driving revenue growth, are under margin pressure due to GPU vendor capturing the lion's share of the gross margin.
Company Guidance
In the ASUS Quarter 2 2025 Online Investor Conference, CFO Nick Wu provided detailed financial guidance, reporting a record quarterly revenue of TWD 174 billion, up 29% quarter-on-quarter and 28% year-on-year. Key growth drivers included gaming products and AI-related products, both showing over 40% revenue growth year-on-year. Gross profit was TWD 21.5 billion with a gross margin of 12.4%, while operating income was TWD 5.96 billion, leading to an operating margin of 3.4%. The quarter's profitability was impacted by tariffs and exchange rate fluctuations, which reduced the operating margin by approximately 0.5 and 1-2 percentage points, respectively. Despite these challenges, ASUS expects to maintain an operating margin target range of 4% to 5% after these issues normalize, with net income after tax reported at TWD 9.8 billion and an EPS of TWD 13.2. The company also highlighted nonoperating income totaling TWD 5.15 billion, including TWD 900 million in interest income and TWD 1.09 billion in FX gains. Looking ahead, ASUS anticipates a 5% to 10% growth in PC product revenue quarter-on-quarter and expects the tariff and FX impacts to ease significantly in the coming months.Asustek Computer Inc. Sponsored GDR RegS Financial Statement Overview
Summary
Asustek Computer Inc. demonstrates strong revenue growth and profitability metrics, with a robust balance sheet characterized by low leverage and high equity utilization. Cash flow improvements are notable, although historical fluctuations warrant cautious cash management.Income Statement
Asustek Computer Inc. shows a strong revenue growth rate of 7.03% in the TTM, indicating robust sales performance. The gross profit margin of 16.23% and net profit margin of 5.60% reflect solid profitability, although slightly below the industry average. The EBIT and EBITDA margins are healthy at 7.27% and 7.72%, respectively, suggesting efficient operational management. However, the decline in EBIT margin from previous years indicates potential cost pressures.75
Positive
Balance Sheet
The company's balance sheet is strong, with a low debt-to-equity ratio of 0.096, indicating conservative leverage and financial stability. The return on equity (ROE) of 13.84% is commendable, showcasing effective use of equity to generate profits. The equity ratio of 42.94% suggests a solid capital structure with a good proportion of assets financed by equity, reducing financial risk.80
Positive
Cash Flow
The cash flow statement reveals a significant improvement in free cash flow growth at 87.54% in the TTM, highlighting enhanced cash generation capabilities. The operating cash flow to net income ratio of 0.21 and free cash flow to net income ratio of 0.96 indicate strong cash conversion efficiency. However, past volatility in cash flows suggests potential risks in cash management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 656.18B | 587.09B | 482.31B | 537.19B | 535.23B | 412.78B |
| Gross Profit | 106.49B | 103.47B | 72.39B | 72.37B | 108.65B | 73.21B |
| EBITDA | 51.52B | 45.82B | 25.56B | 15.49B | 52.20B | 28.34B |
| Net Income | 36.74B | 31.39B | 15.93B | 14.69B | 44.55B | 26.56B |
Balance Sheet | ||||||
| Total Assets | 568.61B | 556.52B | 480.08B | 471.16B | 504.15B | 396.51B |
| Cash, Cash Equivalents and Short-Term Investments | 101.41B | 102.37B | 82.30B | 74.88B | 73.82B | 78.20B |
| Total Debt | 23.47B | 27.44B | 17.97B | 50.43B | 11.01B | 6.82B |
| Total Liabilities | 299.88B | 259.33B | 221.10B | 244.28B | 257.72B | 181.87B |
| Stockholders Equity | 244.19B | 269.54B | 239.82B | 212.38B | 232.33B | 201.76B |
Cash Flow | ||||||
| Free Cash Flow | 55.77B | 5.47B | 50.05B | -17.47B | 30.51B | -5.11B |
| Operating Cash Flow | 58.14B | 8.03B | 52.09B | -15.72B | 32.69B | -2.09B |
| Investing Cash Flow | -9.19B | -3.19B | 2.21B | -4.12B | -6.67B | -4.59B |
| Financing Cash Flow | -10.33B | 4.81B | -45.24B | 6.82B | -17.37B | -11.35B |
Asustek Computer Inc. Sponsored GDR RegS Technical Analysis
Positive
113.38
Price Trends
108.85
Positive
106.78
Positive
98.54
Positive
Market Momentum
1.74
Negative
58.69
Neutral
47.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUUY, the sentiment is Positive. The current price of 113.38 is above the 20-day moving average (MA) of 109.57, above the 50-day MA of 108.85, and above the 200-day MA of 98.54, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASUUY.
Asustek Computer Inc. Sponsored GDR RegS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $16.53B | 13.63 | 13.89% | 5.70% | 25.11% | 13.12% | |
74 Outperform | $23.93B | 21.18 | 120.10% | 1.74% | 3.45% | 9.69% | |
74 Outperform | $37.08B | 22.15 | 33.59% | 0.19% | 2.12% | ― | |
72 Outperform | $46.32B | 32.13 | -324.28% | 1.31% | 38.86% | 337.22% | |
68 Neutral | $27.23B | 27.61 | 16.64% | ― | 47.04% | -17.89% | |
66 Neutral | $24.97B | 9.72 | -209.75% | 4.33% | 3.11% | -3.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
ASUUY
Asustek Computer Inc. Sponsored GDR RegS
113.38
29.56
35.27%
HPQ
HP
26.71
-7.76
-22.51%
NTAP
NetApp
119.88
-1.19
-0.98%
STX
Seagate Tech
217.51
110.24
102.77%
SMCI
Super Micro Computer
45.82
4.18
10.04%
WDC
Western Digital
106.88
55.44
107.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.