Lotes (3533) Investor presentation summary

Company profile and global presence

• Founded in 1986, the company is a leading global provider of interconnect solutions for server, PC, automotive, industrial, and medical sectors, holding over 4,000 patents worldwide and ranking top 4 in computer and peripherals connectors globally.

• Operations are fully integrated in-house, covering design, tooling, injection, stamping, electro-plating, and automation assembly, with ISO and industry certifications.

• Manufacturing and R&D sites are located in Taiwan, China (Suzhou, Guangzhou), Vietnam, the US, Germany, India, and Singapore, supporting a global customer base.

Business overview and market position

• Recognized as a top 3 global CPU socket supplier, the company is a strategic partner for major clients, enabling co-development of next-generation products.

• Automotive segment is growing, with increasing inquiries from tier 1 automotive customers expected to drive future contributions.

• Business coverage in 2024 is led by desktop (34.1%), server (27.47%), and strategic customers (12.25%), with automotive and medical segments showing steady growth.

Financial performance and outlook

• Quarterly revenue rose from NT$7,032M in Q4'22 to NT$9,569M projected for Q2'26, with gross margin improving from 48.16% to over 51% in recent quarters.

• Net profit margin peaked at 35.04% in Q2'25, with EPS reaching NT$82.77 in 2023 and a payout ratio around 50%.

• Strong liquidity is reflected in current and quick ratios consistently above 250%, and a low debt ratio below 28%.