The company further confirmed its commitment to AI innovation, unveiling a new 10U HGX system built with HGX B300 NVL16, which is optimized for AI workloads with increased computing power and memory. In addition, Wiwynn highlighted its UMS100L, an advanced rack-level liquid cooling management system, addressing the escalating cooling demands of AI and HPC data centers.

Wiwynn Corporation, a cloud infrastructure provider headquartered in Taiwan, initiated operations in April 2012 with a vision of enabling Cloud Services Business for its clients. The group develops high-density computing and storage products, plus rack solutions for leading data centers. In addition, it provides end-to-end integrated solutions to enterprises that are looking to build, distribute, or resell cloud services to their clients. Geographically, the company’s primary markets are America, which contributed 77% of the sales mix in 2024; Europe, 14%; Asia, 8%; and Others,1%.

With the backing of one of the world’s leading computer ODM partners, Wistron Corporation, Wiwynn plans to disrupt the market by providing workload-optimized server products with the best total cost of ownership to its clients.

Shaping next-generation technologies

The company’s ‘ODM Direct’ business model is designed to effectively meet the needs of its clients and provide solutions to their individual needs. In addition, Wiwynn provides a wide array of solutions – from the board to the system to the complete rack. The company is a platinum member of the Open Compute Project (OCP) and hence shares the responsibility of prioritizing focus on next-generation technologies to provide optimal Total Cost of Ownership (TCO) and workload efficiency.

Going forward, the main areas of interest for the group include advancements in Cloud, AI, Advanced Connectivity, and Edge Computing. The data storage market has an encouraging outlook, and the sector is pegged to reach USD12.9bn by 2030, reflecting a CAGR of 32.3% over 2024-2030, as per an IndustryArc report. This presents a favorable opportunity for Wiwynn to leverage the demand and offer its cutting-edge solutions to clients.

Record FY 24 performance

Wiwynn released its FY 24 results on February 27, 2025, achieving a record high performance in key metrics. Revenues increased by 49% y/y to NTD360.5bn. Operating income jumped 77.1% to NTD28bn, reflecting a rise of 123bp in margin performance to 7.8%. As a result, net income surged by 89.1% to NTD22.8bn.

Boosted by the positive fundamental trajectory, the company paid an annual dividend of TWD73.7 in FY 24, resulting in a dividend yield of 2.8%. Moreover, analysts expect an average dividend yield of 6.7% over the next three years.

Rise in cash position

Wiwynn registered decent top-line performance over FY 19-24, demonstrating a CAGR of 17.1% to reach TWD361bn. Operating income outperformed revenue performance, clocking a CAGR of 28.1% to TWD28.1bn in FY 24. Operating margins also expanded simultaneously by 280bp, reaching 7.8% in FY 24, thereby further fueling earnings growth. Net income therefore surged at a CAGR of 29.8% over the same period, reaching TWD22.8bn in FY 24.

The cash company's position strengthened over the same period, rising from TWD12bn as of end-FY 19 to TWD48.3bn as of end-FY 24. The rise in cash reserves was achieved on the back of a solid bottom-line trajectory and bolstered by high debt issued over the same period. As a result, total debt increased to TWD32.1bn at end-FY 24, from TWD9bn at end-FY 19. However, notwithstanding the increase in borrowings, the company reported a decline in total debt to equity to 36.4% at end-FY 24, from 44.7% at end-FY 19.

Wiwynn has outperformed its peer, ASROCK, which has achieved a revenue CAGR of 13.8% over the past five years, reaching TWD25.6bn in FY 24. Additionally, operating profit grew at a CAGR of 16.9% to TWD1.7bn, while net profit grew at a CAGR of 16.6% to reach TWD1.3bn over the same period.

Looking ahead, analysts anticipate an EBITDA CAGR of 24.3% over FY 24-26, reaching TWD46.5bn for Wiwynn, with margins of 7% in FY 26. In addition, they estimate net profit CAGR of 20.2%, reaching TWD32.9bn, with margins of 5% in FY 26, with EPS increasing to TWD180.7 in FY 26 from TWD126.6 in FY 24. Likewise, analysts estimate net profit CAGR of 14.6% for ASROCK.

Lower valuation compared to peer

Over the past 12 months, the company's stock fell by 22%, reflecting stress in prices. Shares in the company’s local peer, ASROCK, experienced a similar decline, with its stock dropping by 25% over the same period.

Wiwynn is currently trading at a P/E of 11.2x, based on the FY 25 estimated EPS of TWD153.6, which is lower than its 8-year historical average of 16.5x and ASROCK's 12.6x.

Likewise, in terms of EV/EBITDA, the company is currently trading at 7.5x, based on the FY 25 estimated EBITDA of TWD38.7bn, which is lower than its 8-year historical average of 11.6x and that of ASROCK (7.9x).

Wiwynn is liked by 16 analysts, with all of them having ‘Buy’ ratings for an average target price of TWD3,069.5, implying a huge 87.7% upside potential from its current price level.

Overall, the company is set to post growth over the long term, aided by robust fundamentals, a strong cash position, and an encouraging outlook. Equipped with advanced products and state-of-the-art technology, the group is set to provide the increasingly demanding products that offer the best TCO to clients. However, being an advanced technology-enabled company, Wiwynn is prone to a few risks, including technology obsolescence and high set-up costs. In addition, the group is also exposed to FX volatility risk, credit risk, and client concentration risk.