ASE Technology (ASX) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was NT$160.581bn, up 4.2% QoQ and down 9.5% YoY; parent-attributable net income was NT$9.392bn and basic EPS was NT$2.18.

• FY 2023 revenue was NT$581.914bn, down 13% YoY; parent-attributable net income was NT$31.725bn versus NT$62.090bn in FY 2022, and basic EPS was NT$7.39.

Financial highlights

• Q4 gross profit was NT$25.761bn and operating income was NT$11.815bn; gross and operating margins were 16.0% and 7.4%, respectively.

• Q4 pretax income was NT$12.367bn, including NT$552mn in non-operating income; income tax expense was NT$2.461bn and non-controlling interests were NT$514mn.

• FY gross profit was NT$91.757bn and operating income was NT$40.328bn; gross and operating margins were 15.8% and 6.9%, versus 20.1% and 12.0% in FY 2022.

• FY 2023 basic and diluted EPS were NT$7.39 and NT$7.18, versus NT$14.53 and NT$13.94 in FY 2022.

• Excluding PPA expenses, Q4 net income was NT$10.544bn and basic EPS was NT$2.45; FY net income was NT$36.352bn and basic EPS was NT$8.46.

Outlook and guidance

• 2024 recovery is expected to gain pace after inventory adjustment ends in 1H, with growth accelerating in 2H; full-year ATM revenue growth is expected to track the logic semiconductor market.

• Advanced packaging and testing are expected to make up a larger share of 2024 revenue, supported by technology leadership and a rising turnkey ratio.

• Leading-edge advanced packaging revenue from existing customers is on track to double, adding at least US$250mn in 2024; momentum is expected to continue.

• 2024 investment in machinery, buildings and smart factories is targeted above 2023 levels, reflecting an industry upcycle and advanced technology adoption.