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Novatek Microelectronics (3034) investor relations material

Novatek Microelectronics Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary6 Aug, 2025

Executive summary

  • Q2 2025 consolidated sales reached NT$26.15B, up 3.65% year-over-year, but net income fell 30.61% to NT$3.74B due to lower operating profit, FX loss, and higher tax rate.

  • First half 2025 revenue grew 7.28% year-over-year to NT$53.3B, but net income declined 12.44% to NT$9.0B, impacted by FX losses and margin compression.

  • Gross margin declined to 36.3% in Q2 2025, down from 41.1% year-over-year, mainly due to currency appreciation and higher material costs.

  • Consolidated financials for H1 2025 were reviewed with a qualified conclusion due to certain subsidiaries' statements not being independently reviewed.

  • The group operates primarily in flat panel display and IC design, with all operations aggregated into a single segment.

Financial highlights

  • Q2 2025 operating income was NT$4.8B, down 12.38% year-over-year, with an operating margin of 18.4%.

  • Q2 2025 EPS was NT$6.14, down from NT$8.86 in Q2 2024; first half 2025 EPS was NT$14.80, compared to NT$16.90 prior year.

  • July 2025 revenue was NT$8.1B, down 12% year-over-year and 4% month over month.

  • Cash and equivalents at June 30, 2025 were NT$54.7B, up NT$1.5B sequentially.

  • Net non-operating income turned negative at -NT$220.7M in Q2 2025, mainly from FX loss.

Outlook and guidance

  • Q3 2025 revenue guidance: NT$23.7B–NT$24.7B at an exchange rate of 1:29.5; gross margin: 34%–37%; operating margin: 15%–18%.

  • Q3 revenue expected to decline due to NT dollar appreciation and fading effects of earlier subsidies and tariffs.

  • Full-year 2025 sales are tracking 40% below 2024 due to a strong prior year second half.

  • Tax rate guidance for 2025 is 16%–17%.

  • New IFRS standards adopted in 2025 had no material impact; further standards under evaluation.

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Frequently asked questions

Novatek Microelectronics Corporation is a fabless chip design company. The company specializes in the design, development, and sales of a broad spectrum of display driver ICs and System-on-Chip (SoC) solutions. These products cater to the needs of sophisticated flat-panel display applications and audio/video applications across all digital devices. Novatek's product offerings include SoC solutions and display driver ICs for various sizes of displays, alongside products like image product line, timing controllers, LCD monitor controllers, TV controllers, power management controllers, digital image controllers, and CMOS image sensors. These solutions find applications in enhancing the performance and utilization of digital devices. The company is headquartered in Hsinchu, Taiwan, and its shares are listed on the Taiwan Stock Exchange.

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