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, marking the high point for 2024 despite industry-wide inventory adjustments.

• Net profit for Q3 was NT$299 million, down 33.6% sequentially and 48.4% year-over-year, mainly due to adverse FX impacts and higher non-operating expenses.

• EBITDA for Q3 was NT$1,640 million, up from Q2 but down from Q3 2023.

• For the nine months ended September 30, 2024, revenue was NT$17,296 million and net income NT$1,188 million.

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

Financial highlights

• Q3 2024: Revenue NT$6,068 million, net profit NT$299 million, EPS NT$0.41, EBITDA NT$1,640 million, gross profit NT$843 million, gross margin 13.9%.

• Operating profit for Q3: NT$420 million; operating margin 6.9%, up 0.5 ppt sequentially, down 1.8 ppt year-over-year.

• Cash and cash equivalents at quarter-end: NT$13,777 million.

• Free cash flow for the first nine months: negative NT$401 million, compared to positive NT$1,089 million a year earlier, mainly due to higher CapEx.

• EPS for the nine months: NT$1.63 basic, NT$1.62 diluted.

Outlook and guidance

• Q4 expected to be softer than Q3 due to corrections in memory and DDIC segments and ongoing inventory adjustments.

• Second half of 2024 projected to outperform the first half, but Q4 will be conservative.

• CapEx guidance: 20%-25% of revenue for 2024, 15%-20% for 2025; depreciation to increase 3%-4% quarterly through Q1 2025.

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

• Remaining payment of NT$1,318 million from Unimos Shanghai equity sale expected by year-end 2024.