Arcadyan Technology (3596) Q2 2024 earnings summary

Executive summary

• Net revenue for 2Q24 was NTD 12,167 million, flat year-over-year and down 3% sequentially from 1Q24.

• Net income for 2Q24 reached NTD 584 million, up 3% year-over-year but down 6% sequentially.

• First half 2024 net revenue grew 7% year-over-year to NTD 24,714 million, with net income up 13% to NTD 1,203 million.

• Consolidated financial statements for H1 2024 were reviewed with a qualified conclusion due to certain non-significant subsidiaries not reviewed by independent auditors.

• The group operates primarily in wireless networking, integrated access devices, digital home multimedia, and related products.

Financial highlights

• Operating revenue for H1 2024 was $24,713,659 thousand, up 6.7% year-over-year from $23,159,392 thousand.

• Net income for H1 2024 was $1,208,626 thousand, a 12.8% increase from $1,071,999 thousand in H1 2023.

• Gross profit margin for 2Q24 was 15.0%, up from 14.2% in 2Q23; H1 2024 margin was 15%, consistent with H1 2023.

• EPS for 2Q24 was NTD 2.66, compared to NTD 2.61 in 2Q23 and NTD 2.82 in 1Q24; H1 2024 EPS was NTD 5.48, up from NTD 4.86 in H1 2023.

• Cash and cash equivalents rose to $11,497,884 thousand as of June 30, 2024, from $5,275,589 thousand a year earlier.

Key financial ratios and metrics

• Book value per share as of June 30, 2024 was NTD 66.33, up from NTD 61.40 a year earlier.

• Dividend payout ratio for 2023 was 78%.

• Current ratio as of June 30, 2024: Current assets $34,160,688 thousand / Current liabilities $27,914,436 thousand ≈ 1.22.

• Debt-to-equity ratio as of June 30, 2024: Total liabilities $26,724,263 thousand / Total equity $14,708,179 thousand ≈ 1.82.

• Inventory turnover improved with inventories at $12,996,719 thousand, down from $13,508,365 thousand a year earlier.