Chroma ATE (2360) Q4 2024 earnings summary

Executive summary

• 2024 consolidated sales reached NT$21.6 billion, up 16% year-over-year, with net income at NT$5.4 billion, up 32% year-over-year; global headcount just under 3,600.

• Semiconductor and photonics sectors were the primary growth drivers, with 135% year-over-year growth in semiconductor/photonics test solutions.

• Record-high sales and net income for both consolidated and parent company operations.

• Major growth was also driven by the test instrument segment and increased sales to key customers, with the largest customer accounting for NT$3.59 billion in revenue.

• Return on equity for 2024 was 22%, and a dividend of NT$9 per share was declared, representing a 72% payout ratio.

Financial highlights

• 2024 sales grew 16% year-over-year to NT$21.6 billion; net income was NT$5.4 billion, up 32% year-over-year; EPS was NT$12.49.

• Gross margin was 59%, up from 58% in 2023; gross profit was NT$12.75 billion.

• Operating income reached NT$5.48 billion, a 17% increase year-over-year.

• Q4 2024 net sales were NT$6,039 million, up 20% year-over-year and 7% sequentially; Q4 net income was NT$1,536 million, up 86% year-over-year.

• Free cash flow for 2024 was NT$2,893 million, up 44% year-over-year.

Outlook and guidance

• 2025 growth expected to be driven by semiconductor/photonics sector, advanced packaging metrology equipment, and AI/HPC applications.

• ATS sector anticipated to recover in 2025, supported by EV, ESS, and 5G power device demand.

• Turnkey Solutions projects for AI and manufacturing to continue delivery in 2025.

• Power testing solutions and AR glasses turnkey solutions expected to contribute to growth.