ASRock Industrial Computer (3515) Q2 2023 earnings summary

Executive summary

• H1 2023 revenue was NT$8,481,669 thousand, down from NT$8,655,813 thousand YoY; operating income and net income also declined sharply.

• Q2 revenue rose to NT$4,086,598 thousand from NT$3,617,465 thousand YoY, while gross profit was nearly flat and net income fell to NT$158,274 thousand from NT$294,729 thousand.

Financial highlights

• H1 COGS rose 7% to NT$6,930 million; gross profit declined 29% to NT$1,551 million, with gross margin at 18% vs. 25% YoY.

• H1 operating income was NT$294,880 thousand vs. NT$894,356 thousand, down 67%; operating margin was 3% vs. 10%.

• H1 consolidated net income was NT$266 million, down 72%; net profit attributable to stockholders was NT$283,041 thousand vs. NT$863,409 thousand, and basic EPS was NT$2.32 vs. NT$7.02.

• Q2 gross margin was 20% vs. 23% YoY; operating income was NT$144,015 thousand vs. NT$208,506 thousand.

• H1 inventory depreciation losses increased to NT$224,840 thousand from NT$123,274 thousand YoY.

Key financial ratios and balance sheet

• H1 net profit margin was 3% vs. 11% YoY; ROE was 4% vs. 11%, and book value per share was NT$62.19 vs. NT$64.14 a year earlier.

• Cash and equivalents were NT$3,357 million at June 30, 2023, up from NT$1,459 million a year earlier but down from NT$3,588,129 thousand at Dec. 31, 2022.

• Inventory was NT$7,177 million at June 30, 2023 vs. NT$9,490 million a year earlier; total assets were NT$14,291,704 thousand, liabilities NT$6,100,309 thousand and equity NT$8,191,395 thousand.