Chunghwa Precision Test Tech (6510) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in 3Q24 with net revenue of NT$917 million, up 32% year-over-year and 27% sequentially from 2Q24.

• Consolidated net revenue for the nine months ended September 30, 2024, was NT$2,315.4 million, up 10% year-over-year, with net income attributable to shareholders at NT$187.7 million, a significant increase from NT$15.1 million in the prior year period.

• Gross margin improved to 53.0% in 3Q24, up 4.2 percentage points year-over-year and 0.6 points quarter-over-quarter; for the nine months, gross margin was 52%, up from 48% year-over-year.

• EPS reached NT$3.25 in 3Q24, a significant increase of NT$2.92 year-over-year and NT$1.21 quarter-over-quarter; basic and diluted EPS for the nine months were both NT$5.72, up from NT$0.46 year-over-year.

• The company maintained a strong cash position, ending the period with NT$2,919.8 million in cash and cash equivalents.

Financial highlights

• Net revenue for 3Q24: NT$916,956 thousand.

• Gross margin: 53.0% in 3Q24; 52% for the nine months.

• EPS: NT$3.25 in 3Q24; NT$5.72 for the nine months.

• Free cash flow: NT$60,982 thousand in 3Q24.

• Net income to shareholders: NT$106,690 thousand in 3Q24; NT$187,700 thousand for the nine months.

Outlook and guidance

• Industry forecasts project worldwide semiconductor market sales to grow at a 7.8% CAGR from 2024 to 2027.

• Semiconductor probe card market expected to grow at a 10.1% CAGR from 2024 to 2028; MEMS probe card market at 11.8% CAGR.

• AI semiconductor market sales projected to rise sharply, with 2024–2028 CAGR exceeding 20%.

• Management expects continued growth, supported by robust demand in semiconductor testing and printed circuit board segments.

• No significant impact is anticipated from new or upcoming accounting standards.