Cheng Shin Rubber (2105) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 was NT$47,968 million, nearly flat compared to NT$48,152 million in the prior year period, with a slight decrease in gross margin from 23% to 26% due to lower operating costs.

• Net profit for the six-month period rose to NT$4,577 million, up from NT$3,674 million year-over-year, with EPS increasing to NT$1.41 from NT$1.13.

• The company maintained a strong cash position and continued to invest in property, plant, and equipment, while distributing NT$6,482 million in dividends.

Financial highlights

• Operating profit for the six months was NT$5,788 million, up from NT$4,519 million year-over-year.

• Gross margin improved to 26% from 23% year-over-year.

• Net cash flows from operating activities reached NT$9,084 million, up from NT$7,663 million in the prior year.

• Total assets as of June 30, 2024 were NT$144,124 million, with equity at NT$85,819 million.

Outlook and guidance

• Management expects continued stable demand in key markets and ongoing investment in capacity and operational efficiency.

• A capital increase for the Indian subsidiary was approved post-period to support expansion and working capital.