ASRock Industrial Computer (3515) Q2 2024 earnings summary

Executive summary

• Q2 and H1 2024 revenue and profitability improved year over year, with higher gross margins and EPS.

• H1 operating cash flow turned negative amid a substantial inventory build.

Financial highlights

• Q2 revenue was NT$5,224,422 thousand vs NT$4,086,598 thousand YoY; H1 revenue was NT$10,177,642 thousand vs NT$8,481,669 thousand.

• Q2 gross profit was NT$1,178,072 thousand, or 23% of revenue vs 20%; H1 gross profit was NT$2,190,068 thousand, or 22% vs 18%.

• Q2 operating income was NT$378,830 thousand vs NT$144,015 thousand, and net income was NT$347,901 thousand vs NT$158,274 thousand.

• H1 operating income was NT$679,026 thousand vs NT$294,880 thousand; net income was NT$694,028 thousand vs NT$266,242 thousand.

• H1 parent-attributable profit was NT$572,232 thousand vs NT$283,041 thousand; basic EPS was NT$4.70 vs NT$2.32, while Q2 basic EPS was NT$2.17 vs NT$1.30.

Segment performance

• Operations are managed as one operating segment, focused on R&D, design and sales of products such as motherboards.