ChipMOS TECHNOLOGIES (8150) Q2 2024 earnings summary

Executive summary

• Achieved strong revenue growth in Q2 2024, with revenue at NT$5,810 million, up 7.2% sequentially and 6.7% year-over-year, and H1 2024 revenue at NT$11,228 million, up 12% year-over-year.

• Net profit attributable to the company was NT$451 million in Q2 and NT$888 million for H1 2024, with EPS at NT$0.62 for Q2 and NT$1.22 for H1.

• Maintained leadership in automotive, OLED, and high-end DDIC segments, with robust performance in these areas.

• Profitability metrics showed gross margin at 14% and operating margin at 7% for H1 2024.

• Completed sale of Unimos Shanghai in May 2024, recognizing a gain and strengthening cash position.

Financial highlights

• EBITDA for Q2 was NT$1,558 million; gross margin at 14%, down 0.2 ppts sequentially and 3.3 ppts year-over-year.

• Operating profit margin at 6.4% in Q2, down 0.3 ppts sequentially and 3.2 ppts year-over-year.

• Net free cash inflow for H1 2024 was NT$1,433 million, down from NT$1,950 million in H1 2023.

• Cash and cash equivalents at NT$14,652 million as of June 30, 2024.

• Total assets: NT$45,435 million; total equity: NT$24,516 million; equity represents 54% of total assets.

Outlook and guidance

• Cautiously optimistic for Q3 and H2 2024, expecting improved operating momentum and stronger second half.

• Memory products and DDIC expected to maintain or outgrow momentum, driven by restocking and new launches.

• CapEx to focus on memory test platform upgrades and DDIC test capacity expansion, with strategic additions planned at 20% of annual revenue.

• Targeting improved margins in H2 through cost control, especially electricity usage.

• No significant changes in capital management or risk policies anticipated for the remainder of the year.