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AIDC held an investor conference for FY2017 results revealing optimistic prospects

 
2018/4/18 


Taiwan’s leading aerospace industry company, Aerospace Industry Development Corporation (AIDC) conducted an investor conference today (April 18, 2018). The Chairman of AIDC, Rong-Xin “Anson” Liao led his management team to present FY2017 results, global market overview, operational performance, and future prospects.

In his address, Chairman Liao said that they will focus on three goals in future to embrace opportunities and confront challenges. First, they will complete the mission of Advanced Jet Trainer’s (AJT) indigenous program in accordance with the government’s national defense policy. Second, they will promote “Smart Manufacturing”. And finally, they will integrate the aerospace industry supply chain.

He continued by emphasizing that the development of AJT Program is a concrete demonstration of the determination of defense autonomy and indigenous aircraft. There are 804 days to go (548 working days) until the date of its prototype debut flight. So far all is ongoing according to schedule, following the first phase, which the outsourcing contract has been signed with 48 domestic suppliers on Dec. 6, 2018, the second phase contract will be soon initiated on Apr. 24, 2018.

He added that the three key elements to develop AIDC’s future business are talent, stoves and firewood. In terms of human resources, they have recruited more than 700 engineers from various fields such as aerospace, electrical engineering, and mechanical engineering in one and a half year to pass technical experience from one generation to the next generation. To build up stoves by integrating the supply chains of the AJT, commercial aircraft programs, aircraft engine, and aircraft interiors. In addition to the AJT contract, AIDC also obtained orders of star models B737, A320, A350, B787 as well as best-selling engines of CFM56, LEAP, XWB. Also, the self-produced item recently exhibited in Hamburg, Germany Interiors Expo, AIDC’s commercial aircraft seat in line with the 16G specification, will add firewood for the future operation of AIDC.

Looking ahead this year, the President of AIDC, N.J. Lin pointed out that in the military business, the revenue from the F-16 A/B performance upgrade will gradually increase, and the revenue contribution of the AJT program will also become apparent; they are striving for its prototype rollout in Sept. 2019. In addition, the civil business is seeing global aerospace companies’ aircraft replacing sources with the more competitive as well as undertaking dual source solutions. AIDC will continue to stay alert to market turmoil and will adjust its strategy on production capacity in a timely manner to grasp the business opportunity. Besides, following the full load of F16 new plant capacity, the ECMC and TACC-19 plant will also achieve full capacity target in the second half of this year.

AIDC’s consolidated revenue of NT$ 6.2 billion in Q1 of 2018 was 5.1% higher than the same period last year. The 2017 yearly revenue of NT$27.5 billion hit a record high while maintaining a steady growth of 10.1% on its operation interest ratio, which was in line with the global aerospace trend. However, due to U.S. dollar depreciation, the yearly net profit was NT$1.75, reducing by 16%, and the earnings per share was NT$1.86. The initial plan for earnings distribution in 2017 is to allocate statutory reserves, special reserves for operation capital needs, and cash dividends of NT$1.13/share, which subject to the approval of the shareholders’ meeting.