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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.
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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