CHT Security (7765) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, was NT$855.9 million, up 4.8% year-over-year from NT$816.7 million.

• Net income for the period was NT$193.4 million, a 34.7% increase from NT$143.7 million in the prior year period.

• Gross margin improved to 47% from 38% year-over-year, reflecting better cost control and higher value-added services.

• Basic EPS rose to NT$5.35 from NT$4.18, and diluted EPS to NT$5.22 from NT$4.09.

Financial highlights

• Operating income increased 29.3% year-over-year to NT$238.6 million.

• Operating expenses rose to NT$167.2 million, representing 19% of revenue, up from 15% in the prior year.

• Cash and cash equivalents at June 30, 2024, were NT$646.3 million, up from NT$552.9 million a year earlier.

• Net cash from operating activities was NT$92.4 million for the six-month period, up from NT$89.5 million year-over-year.

• Total assets reached NT$1,489.4 million, with equity at NT$727.0 million and liabilities at NT$762.3 million.

Outlook and guidance

• The company continues to focus on expanding information security services and expects ongoing revenue growth.

• No material impact is expected from newly issued or revised IFRS standards in the near term.