Novatek Microelectronics (3034) investor relations material

Executive summary

• Full-year 2025 revenue was NT$100.66 billion, down 2% year-over-year, with net income at NT$16.35 billion, a 19.6% decrease from 2024.

• Q4 2025 revenue was NT$22.82 billion, down 7% quarter-over-quarter and 9.7% year-over-year, at the high end of guidance.

• Q4 2025 net income was NT$3.69 billion, up 1% sequentially but down from NT$4.08 billion a year ago.

• Q4 2025 EPS was NT$6.07, up from Q3 but down from NT$7.89 a year ago.

• The company maintained a strong cash position with NT$42.42 billion at year-end 2025.

Financial highlights

• Gross margin for Q4 2025 was 38.2%, up sequentially but down from 39.5% a year ago; full-year 2025 gross margin was 37.7%, down from 40.3% in 2024.

• Operating income for Q4 2025 was NT$3.86 billion, with an operating margin of 16.92%, down year-over-year but improved sequentially.

• 2025 EPS was NT$26.87, down from NT$33.43 in 2024.

• Net cash at year-end 2025 was NT$42.42 billion, up NT$2.76 billion from Q3 2025.

• Inventory at year-end 2025 was NT$8.64 billion, down NT$0.56 billion from Q3 2025.

Outlook and guidance

• Q1 2026 revenue expected at NT$22.2–23.2 billion; gross margin 36%–39%; operating margin 15%–18%.

• Tax rate guidance for 2026 is 16%–17%, similar to 2025.

• OpEx expected to grow slightly in 2026 due to increased R&D and talent investment.

• Early 2026 sales continued to fall, with January revenue down 10% year-over-year.

• Management expects continued focus on core IC and display driver markets, with no segment diversification planned.