Advantech Sets Five-Year Growth Plan for Top Four Regions
Advantech (stock code: 2395) hosted the analyst meeting today. Advantech reported EPS growth of 19% YoY in 1H19 to NT$5.04. Advantech also announced it will set up respective five-year (2019-2024) growth plans for its top four regions, including North America, Greater China, Europe and Asia & Intercon Region. In addition to local investment and co-created IoT SRP (Solution Ready Package) development, Advantech’s software and hardware integration service is expected to become the next big growth driver. Currently, there are over 150 active VIP customers subscribing to WISE-PaaS software services. Advantech believes that in 2020, SRPs will migrate from the current “set-up stage” to an “application-integrated stage.”
In North America, Advantech plans to buy and build a new headquarters in southern California to develop enterprise-academia collaboration and promote brand awareness. The company will set up eight new regional sales offices in the coming two years to reduce the work-from-home employee ratio, to facilitate better workplace culture, and to nurture domestic talent development. Mr. Ween Niu, General Manager of Advantech North America (ANA), said that, “ANA targets double digit YoY revenue growth in 2019 and expects to maintain a similar growth pattern in the coming few years. In addition to organic growth, investment and M&A could be additional growth drivers.”
In China, Advantech has already outlined the blueprint for Advantech Beijing’s new building in order to expand the software R&D team and speed up local hiring for industrial IoT business development, especially in the energy and manufacturing fields. Mr. Paul Luo, General Manager of Advantech China (ACN), stated that, “ACN was the key growth driver for Advantech over the past ten years and we expect to remain as the key driver for the next five years. Given this expectation, we kicked off a five-year growth plan and launched the Advantech Customer Care Service ahead of other regional offices.”
Mr. Vincent Chang, Director of Advantech Industrial IoT Group & Sales GM of Advanced InterCon, commented, “The IoT technology migration recognized the reality of decentralized manufacturing. There are tremendous growth opportunities in emerging markets and Advantech will rely on its Taiwan-based sales teams to cooperate and form alliances with domestic partners in Southern Asia, the Middle East, Russia, and Latin America. We, together with our partners, expect to co-develop tailor-made business models and product offerings whilst seeking exponential growth throughout emerging markets.
Advantech also announced new investment plans in Taiwan and other regions. Mr. Eric Chen, President of Advantech, said, “In Taiwan, we plan to expand and build a new complex at our Linkou Campus as the headquarters for the Service IoT Group. We’ve scheduled construction to start in early 2020 and the grand opening should happen in 2022. Our investment echoes the Taiwan government’s initiatives for more domestic development. In Japan, we plan to migrate our AJSC (Advantech Japan Service Center) to ATJ (Advantech Technologies Japan, aka Omron Nohgata), which we’ve consolidated since February in Fukuoka to strengthen our overall operations and customer service in Japan.”