Compal Electronics (2324) Q4 2024 earnings summary

Executive summary

• 2024 revenue was NT$910.3 billion, down 4% year-over-year, with Q4 revenue at NT$229.2 billion and PC units shipped at 32.3 million, a 4% decrease from 2023.

• Net profit for 2024 was NT$10.04 billion, with EPS of NT$2.30, up 31% year-over-year; net income for 2024 rose 28%.

• Gross margin improved to 5.0% in 2024 from 4.5% in 2023.

• Board approved a 2024 cash dividend of NT$1.4 per share, a 61% payout ratio, to be paid in April.

• Consolidated financial statements for 2024 and 2023 were audited and present fairly in all material respects.

Financial highlights

• Operating profit for 2024 increased 23% year-over-year to NT$14.8 billion; pre-tax income was NT$15.3 billion, up 29%.

• Q4 net profit was NT$2.34 billion, up 8% year-over-year but down 38% sequentially; Q4 EPS was NT$0.44.

• Book value per share rose to NT$32.3 at year-end 2024.

• Cash and cash equivalents at year-end 2024 were NT$78.9 billion, 17% of total assets.

• Current ratio improved to 134% in 2024.

Outlook and guidance

• Q1 2025 PC units expected to decline high single-digit quarter-over-quarter due to seasonality.

• Full-year PC industry growth projected at mid to high single digits; server revenue targeted for high double-digit growth.

• Automotive business expected to grow in the high teens year-over-year.

• OPEX expected to grow at a low single-digit percentage year-over-year to support new business investments.

• Expansion in the U.S. and Poland with a US$30 million capital investment planned for AEP business.