Chicony Electronics (2385) Q3 2024 earnings summary

Executive summary

• Net sales for 3Q24 reached NT$27.7B, up 7.4% year-over-year and 12.4% sequentially from 2Q24.

• Net income for 3Q24 was NT$2.4B, a 13% increase year-over-year, though down 3% sequentially.

• For the nine months ended September 30, 2024, net profit was NT$6.63B, up from NT$5.39B year-over-year.

• EPS for 3Q24 was NT$3.29, up 12.3% year-over-year; nine-month EPS was NT$9.11, up from NT$7.48 last year.

• Total assets increased to NT$101.07B as of September 30, 2024, from NT$89.33B a year earlier.

Financial highlights

• Gross profit margin (GPM) for 3Q24 was 20.4%, with OPM at 10.8% and NPM at 8.6%.

• For the nine months, GPM was 20.4% and OPM 10.4%, both higher year-over-year.

• Operating profit for the nine months was NT$7.82B, up from NT$6.82B year-over-year.

• Year-to-date revenue was NT$84.5B, up 2.9% year-over-year; October revenue was NT$9.3B, up 12.7% year-over-year.

• Cash and cash equivalents rose to NT$21.36B at quarter-end, up from NT$18.91B a year ago.

Outlook and guidance

• Anticipates an upgrade in commercial notebook demand in 2025, targeting a higher value-added product mix.

• Commercial notebook shipments expected to rebound in 2025 after declines in 2023 and 2024.

• Legal reserve and unappropriated retained earnings increased, supporting future dividend capacity.

• Capital surplus and equity attributable to owners of the parent continued to grow, indicating ongoing financial strength.