AirTAC International Group (1590) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 1.794 billion (NT$8,096 million), up 9–12% year-over-year, with gross profit at RMB 792 million and net profit at NT$1,936 million, up 2–6% year-over-year.

• Gross margin was 44–44.2%, down from 47% in Q1 2024, reflecting higher costs and Chinese New Year impact.

• Operating income was RMB 504 million (NT$2,272 million), up 2–5% year-over-year, with operating margin at 28–28.1%.

• Earnings per share were NT$9.68 (basic), up from NT$9.15 in Q1 2024.

• Direct U.S. export exposure is minimal (0.6% of revenue); indirect U.S. exposure is estimated in the single digits, limiting tariff impact.

Financial highlights

• Pre-tax income was RMB 547 million, up 3% year-over-year, with a pre-tax margin of 30.5%.

• Non-operating income was RMB 43 million (NT$194 million), mainly from FS gain, foreign exchange, and government grants.

• Cash and cash equivalents at quarter-end were NT$5,301 million, down from NT$7,696 million a year ago.

• Inventory days at quarter-end were 134, below normal due to strong March shipments.

• Total assets stood at NT$57,630 million, with equity attributable to owners at NT$46,457 million.

Outlook and guidance

• 2025 revenue growth guidance raised from mid-high single digit to low 10% range, driven by better-than-expected shipments and strong performance in electronics, auto, and battery sectors.

• OP margin for 2025 expected around 30%.

• CapEx planned at TWD 2-3 billion for 2025.

• Free cash flow was TWD 6.5 billion in 2023 and TWD 8 billion in 2024.

• Management is monitoring new IFRS standards effective in 2026 and focusing on capital optimization and risk management.