Chicony Electronics (2385) Q2 2024 earnings summary

Executive summary

• 2Q24 net sales reached NT$24,674 million, up 8.0% sequentially but down 2.7% year-over-year.

• Net income for 2Q24 was NT$2,471 million, a 40.2% increase from 1Q24 and 37.0% higher year-over-year.

• 1H24 net sales totaled NT$47,520 million, down 1.2% year-over-year, while net income rose 29.3% to NT$4,233 million.

• Net income for the six months ended June 30, 2024 was NT$4.97 billion, up from NT$3.96 billion year-over-year.

• Total assets increased to NT$100.24 billion as of June 30, 2024, compared to NT$84.51 billion a year earlier.

Financial highlights

• 2Q24 gross margin improved to 20.7%, up 0.5ppt sequentially and 2.8ppt year-over-year.

• Operating margin for 2Q24 was 10.4%, up 0.4ppt from 1Q24 and 2.4ppt year-over-year.

• 2Q24 after-tax EPS was NT$3.40, up 40.5% sequentially and 36.0% year-over-year.

• Gross margin for the six months ended June 30, 2024 was 20.4%, up from 17.5% year-over-year.

• Cash and cash equivalents increased to NT$26.67 billion as of June 30, 2024, from NT$17.52 billion a year earlier.

Key financial ratios and metrics

• Book value per share increased to NT$55.99 in 2Q24 from NT$50.63 in 1Q24 and NT$47.06 in 2Q23.

• Current ratio improved to 1.44 in 2Q24 from 1.36 in 1Q24.

• Net cash position rose to NT$21,118 million in 2Q24 from NT$20,289 million in 1Q24.

• Debt ratio decreased to 52% in 2Q24 from 54% in 1Q24.

• Return on equity (annualized) improved due to higher net income and equity base.