ChipMOS TECHNOLOGIES (8150) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NT$6,068 million, up 4.4% sequentially and 8.7% year-over-year, with EBITDA at NT$1,640 million and net profit at NT$299 million, despite industry-wide inventory adjustments and adverse FX impacts.

• Q3 marked the high point for 2024, with a conservative outlook for Q4 due to ongoing market headwinds and customer inventory adjustments.

• For the nine months ended September 30, 2024, revenue was NT$17,296 million and net income NT$1,188 million, reflecting growth in core business segments.

• The company completed the sale of its equity stake in Unimos Shanghai in May 2024, recognizing a gain of NT$72 million.

Financial highlights

• Q3 2024: Revenue NT$6,068 million, net profit NT$299 million, EBITDA NT$1,640 million, gross profit NT$843 million, gross margin 13.9%, operating profit NT$420 million, operating margin 6.9%.

• Net earnings per share for Q3: NT$0.41; for nine months: NT$1.63 basic, NT$1.62 diluted.

• Cash and cash equivalents: NT$13,777 million as of September 30, 2024.

• CapEx for Q3: NT$2,089 million, focused on LCD driver, testing, assembly, and bumping.

• Free cash flow for the first nine months: negative NT$401 million, mainly due to higher CapEx.

Outlook and guidance

• Q4 expected to see corrections in memory and DDIC segments due to softer demand and inventory adjustments; 2H24 projected to outperform 1H24.

• CapEx guidance: 20%-25% of revenue for 2024, 15%-20% for 2025.

• Depreciation expected to increase 3%-4% quarterly through Q1 2025, with potential reduction if 2025 CapEx is lower.

• Dividend payout policy remains at 40%-60% of earnings.

• The company expects to receive the remaining payment of NT$1,318 million from the Unimos Shanghai equity sale by year-end 2024.