ChipMOS TECHNOLOGIES (8150) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue increased 6.3% year-over-year to NT$22,695.9M, with growth in most segments except LCDD.

• Q4 2024 revenue was NT$5,399.6M, down 11% sequentially and 5.7% year-over-year, with gross margin and utilization rates also falling.

• Net profit for 2024 was NT$1,420.0M, down 25% year-over-year; Q4 net profit was NT$232.2M, down 22.4% sequentially and 51.8% year-over-year.

• Board approved a treasury stock buyback of up to 10 million shares in early 2025 and a dividend of NT$1.2 per share pending approval.

• Completed sale of Unimos Shanghai stake, generating a gain of NT$72.3M.

Financial highlights

• Q4 2024 gross margin was 9.5%, down 4.4 percentage points sequentially and 10.6 points year-over-year; full-year gross margin was 13%.

• Q4 operating profit margin was 2.2%, down from 6.9% in Q3 and 12.5% in Q4 2023; full-year operating profit margin was 5.6%.

• Q4 EBITDA was NT$1,387.8M; Q4 EPS was NT$0.32, down from NT$0.41 in Q3 and NT$0.66 in Q4 2023.

• Cash and cash equivalents at year-end were NT$15,219.0M, up from NT$12,354.0M in 2023.

• Free cash flow for FY24 was negative NT$938.3M, mainly due to increased CapEx.

Outlook and guidance

• Management remains cautious for 2025 due to global economic uncertainties, tariffs, and trade tensions.

• Q1 2025 expected to show normal seasonality and minor correction from inventory adjustments and Lunar New Year.

• Business momentum anticipated to improve through 2025, with a stronger second half and recovery in niche DRAM, NAND Flash, OLED, and automotive panels.

• CapEx for 2025 to remain conservative, with investments tied to customer demand and utilization.

• Adoption of new IFRS standards in 2024 and 2025 is not expected to have a significant impact.