Aerospace Industrial Development (2634) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue reached NT$10,575.6 million, up 6.4% year-over-year, with EPS rising 48% to NT$0.85, driven by higher gross margin and FX gains.

• Net profit for Q1 2024 was NT$804.2 million, a 48% increase from Q1 2023.

• Orders from January to April 2024 exceeded NT$10 billion, with balanced growth in military and civil sectors.

• Entered global drone market via MOU with AEVEX Aerospace and expanded energy business cooperation with GE Vernova.

• AJT program delivered 17 aircraft in 2023, with 18 more planned for 2024 and a total of 66 by 2026.

Financial highlights

• Operating income for Q1 2024 was NT$768.6 million, up from NT$646.0 million in Q1 2023.

• Total assets as of March 31, 2024 were NT$44,448.1 million, with equity at NT$17,963.4 million.

• Cash and cash equivalents decreased to NT$1,366.8 million from NT$3,367.5 million at year-end 2023.

• Net cash used in operating activities was NT$2,481.1 million, and net cash used in investing activities was NT$128.6 million.

• Revenue mix in 2024 (Jan-May): Defense 57%, Commercial 38%, Tech Service 5%.

Outlook and guidance

• Focus on sustainable growth by enhancing core aerospace technology and expanding distribution as a fourth business pillar.

• Continued emphasis on AJT program, F-16 upgrades, new aircraft projects, and drone business.

• Plans to develop thermoplastic composites and participate in next-generation aircraft programs.

• Capital management aims to ensure sufficient resources for working capital, capex, and debt repayment over the next 12 months.

• Focus on capital adequacy for operations, expansion, and international cooperation projects.