Cheng Shin Rubber (2105) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was NT$23,163,783 thousand, a slight decrease from NT$23,622,354 thousand in Q1 2024, with net profit dropping to NT$1,450,135 thousand from NT$2,221,116 thousand year-over-year.

• Gross margin declined to 23% from 25% year-over-year, and operating profit margin fell to 9% from 11% in the same period last year.

• Total assets as of March 31, 2025, were NT$146,886,781 thousand, with equity at NT$85,685,927 thousand and liabilities at NT$61,200,854 thousand.

Financial highlights

• Net operating margin for Q1 2025 was NT$5,288,101 thousand, down from NT$5,948,719 thousand in Q1 2024.

• Operating profit was NT$1,933,694 thousand, a decrease from NT$2,736,087 thousand year-over-year.

• Basic and diluted EPS for Q1 2025 were both NT$0.45, compared to NT$0.68 in Q1 2024.

• Cash and cash equivalents stood at NT$26,503,123 thousand at quarter-end.

• Dividend distribution for 2024 earnings was NT$7,779,397 thousand (NT$2.4 per share).

Outlook and guidance

• Management continues to monitor the impact of new IFRS standards and Pillar Two income tax legislation, with no significant impact expected in the near term.

• The company maintains a gearing ratio below 200% and continues to focus on capital structure optimization.