Acter (5536) Q2 2024 earnings summary

Executive summary

• Founded in 1979, the group specializes in electromechanical engineering, clean room integration, and energy-saving systems, with a global presence across Taiwan, China, Japan, and Southeast Asia.

• Revenue for the six months ended June 30, 2024, reached NT$13,136,318 thousand, up from NT$11,973,635 thousand year-over-year, reflecting growth across core business segments.

• Net income attributable to shareholders for the six months was NT$1,244,703 thousand, an increase from NT$986,955 thousand year-over-year.

• The company has a strong ESG focus, achieving significant greenhouse gas reductions, zero environmental penalties for nine years, and top-tier corporate governance rankings.

• Recognized for high dividend payouts and superior ROE, with a 2023 ROE of 21.76% and consistent top 5% ESG and governance ratings.

Financial highlights

• 2024H1 gross profit margin reached 22.28%, up year-over-year; EPS hit a historical high at NT$10.03 (par value NT$5).

• Operating revenue for 2024H1 was NT$13.14 billion, up 10% year-over-year; profit after tax attributable to the parent rose 26% to NT$1.24 billion.

• Operating income for the six months ended June 30, 2024, was NT$1,951,926 thousand, up from NT$1,735,176 thousand year-over-year.

• Cash and cash equivalents increased to NT$9,615,611 thousand from NT$7,740,844 thousand year-over-year.

• Backlog exceeds NT$30 billion, supporting future operations.

Outlook and guidance

• High backlog (NT$30+ billion) ensures operational visibility; 2024H1 backlog distribution: Taiwan 55%, China 35%, Southeast Asia 10%.

• AI and semiconductor industry growth, along with regionalized supply chains, are expected to drive future business opportunities.

• Cleanroom and net-zero carbon markets forecast robust growth, with Asia Pacific as the fastest-growing region.

• Management expects the adoption of new IFRS standards in 2025 and 2027 to have no material impact.

• The Group continues to evaluate the impact of IFRS 18, effective January 1, 2027, on its financial reporting.