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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)
Rating:82Outperform
Price Target:
$138.00
▲(38.22%Upside)
Asustek Computer Inc. Sponsored GDR RegS (ASUUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.14B
Dividend Yield5.21%
Average Volume (3M)0.00
Price to Earnings (P/E)13.6
Beta (1Y)0.61
Revenue Growth20.50%
EPS Growth63.01%
CountryUS
EmployeesN/A
SectorTechnology
Sector Strength94
IndustryComputer Hardware
Share Statistics
EPS (TTM)2.84
Shares Outstanding148,552,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.69
Price to Sales (P/S)0.00
P/FCF Ratio15.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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:May 13, 2025
(Q1-2025)
| % Change Since: 4.20%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented strong revenue and profit growth, driven by improvements in product margins and expansion in AI and gaming sectors. However, significant challenges remain with tariffs, exchange rate volatility, and a conservative outlook for the PC market in the latter half of the year.Q1-2025 Updates
Positive Updates
Revenue and Profit Growth
Quarter one 2025 revenue was TWD135.2 billion, up 18% year-over-year. Operating profit was TWD11.5 billion, a 147% increase year-over-year, driven by growth in PC, laptop, and server shipments.
Improved Gross Margins
Product gross margin improvements were noted, particularly in the component business, thanks to the introduction of a new gaming platform.
Net Income and EPS Growth
Net income after tax for quarter one was TWD12.8 billion, up 135% year-over-year, with EPS at $7.2.
AI PC and Gaming Expansion
AI PC shipment grew 30% quarter-on-quarter, and gaming PC shipment volume for quarter two is expected to see a Q-o-Q growth exceeding 30%.
AIoT Business Growth
The AIoT business group reported a 10% to 15% year-on-year growth, driven by Asus NUC Mini PCs and other AIoT products.
Negative Updates
Inventory Build-Up and Challenges
Inventory stood at TWD144.8 billion, a 13% increase year-over-year, reflecting strategic stockpiling amid tariff concerns.
Tariffs and Exchange Rate Volatility
Tariffs and exchange rate fluctuations are significant challenges, with potential impacts on financial reporting and profitability.
Conservative PC Market Outlook
For the second half of 2025, PC demand is expected to be conservative, with potential for low-single-digit growth or no growth.
Short-Term Exchange Rate Impact
Recent appreciation of the Taiwanese dollar could cause short-term mismatches in revenue and cost recognition.
Company Guidance
In the ASUS Quarter One 2025 Online Investor Conference, CFO Nick Wu provided detailed financial guidance, highlighting significant metrics that reflect the company's robust performance and strategic outlook. For Q1 2025, ASUS reported a revenue of TWD135.2 billion, an 18% increase year-over-year, driven by strong PC and server shipments. Operating profit surged by 147% to TWD11.5 billion, aided by improved gross margins, particularly in the gaming platform segment, and the reversal of a TWD5.3 billion bad debt provision. The adjusted operating profit, excluding this reversal, showed a 32% year-over-year growth, maintaining a stable operating margin of 4.5%. Net income after tax was TWD12.8 billion, marking a 135% year-over-year increase, with EPS reaching $7.2. Inventory levels rose 13% year-over-year to TWD144.8 billion as part of a strategic stockpiling initiative, while the cash conversion cycle stood at 116 days. For Q2 2025, ASUS expects sequential growth of 25% to 30% in components and servers, despite high shipment bases in Q1. The company remains vigilant of external challenges such as tariffs and exchange rate volatility, with over half of its revenue stemming from non-U.S. dollar currencies, providing resilience against such risks. ASUS continues to focus on high-end product lines to maintain market leadership and mitigate potential market fluctuations.Asustek Computer Inc. Sponsored GDR RegS Financial Statement Overview
Summary
Asustek's financial performance is strong, with solid revenue growth and robust operational efficiency. The balance sheet is stable, though there is a slight increase in debt. Cash flow remains positive with room for improvement in cash generation efficiency.Income Statement
Asustek shows a strong financial performance with consistent revenue growth from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin remains healthy, and the net profit margin has improved significantly, indicating efficiency in operations. EBIT and EBITDA margins are robust, reflecting solid operational management.88
Very Positive
Balance Sheet
The company maintains a stable balance sheet with a favorable debt-to-equity ratio, signifying prudent financial management. The equity ratio indicates a strong capital structure, and ROE is impressive, reflecting efficient use of shareholder funds. However, there is a slight increase in total debt that warrants monitoring.82
Very Positive
Cash Flow
Cash flow analysis reveals positive trends with a significant increase in operating cash flow in the TTM period. The free cash flow growth is noteworthy, although the operating cash flow to net income ratio suggests room for improvement in cash generation efficiency.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 587.09B | 482.31B | 537.19B | 535.23B | 412.78B |
| Gross Profit | 103.47B | 72.39B | 72.37B | 108.65B | 73.21B |
| EBITDA | 45.82B | 25.56B | 15.49B | 52.20B | 28.34B |
| Net Income | 31.39B | 15.93B | 14.69B | 44.55B | 26.56B |
Balance Sheet | |||||
| Total Assets | 556.52B | 480.08B | 471.16B | 504.15B | 396.51B |
| Cash, Cash Equivalents and Short-Term Investments | 102.37B | 82.30B | 74.88B | 73.82B | 78.20B |
| Total Debt | 27.44B | 17.97B | 50.43B | 11.01B | 6.82B |
| Total Liabilities | 259.33B | 221.10B | 244.28B | 257.72B | 181.87B |
| Stockholders Equity | 269.54B | 239.82B | 212.38B | 232.33B | 201.76B |
Cash Flow | |||||
| Free Cash Flow | 5.47B | 50.05B | -17.47B | 30.51B | -5.11B |
| Operating Cash Flow | 8.03B | 52.09B | -15.72B | 32.69B | -2.09B |
| Investing Cash Flow | -3.19B | 2.21B | -4.12B | -6.67B | -4.59B |
| Financing Cash Flow | 4.81B | -45.24B | 6.82B | -17.37B | -11.35B |
Asustek Computer Inc. Sponsored GDR RegS Technical Analysis
Positive
99.84
Price Trends
105.36
Positive
96.94
Positive
93.64
Positive
Market Momentum
0.85
Positive
51.38
Neutral
36.87
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 99.84 is below the 20-day moving average (MA) of 110.47, below the 50-day MA of 105.36, and above the 200-day MA of 93.64, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 36.87 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $16.14B | 13.60 | 14.34% | 5.21% | 20.50% | 63.01% | |
79 Outperform | $21.71B | 19.10 | 108.51% | 1.94% | 5.02% | 22.19% | |
79 Outperform | $30.90B | 28.57 | 21.03% | ― | 82.10% | 6.35% | |
63 Neutral | $23.21B | 12.74 | 28.45% | 0.15% | 21.22% | ― | |
63 Neutral | $34.60B | 5.43 | -11.64% | 1.84% | 5.30% | -18.55% | |
61 Neutral | $23.54B | 9.66 | 84.33% | 4.62% | 2.08% | -12.41% | |
61 Neutral | $31.64B | 21.54 | -109.27% | 1.93% | 36.29% | ― |
* Technology Sector Average
Performance Comparison
ASUUY
Asustek Computer Inc. Sponsored GDR RegS
109.03
40.72
59.61%
HPQ
HP
25.06
-11.54
-31.53%
NTAP
NetApp
108.37
-17.43
-13.86%
STX
Seagate Tech
149.08
45.79
44.33%
SMCI
Super Micro Computer
51.77
-26.86
-34.16%
WDC
Western Digital
68.00
12.90
23.41%
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.