ELAN Microelectronics (2458) Q2 2024 earnings summary

Executive summary

• 2Q24 consolidated sales reached NT$3,151M, up 3.6% year-over-year and 1.4% sequentially.

• Net profit for 2Q24 was NT$718M, a 59.2% increase year-over-year and 11% sequentially.

• 1H24 sales totaled NT$6,257M, up 14.9% year-over-year, with net profit at NT$1,421M, up from NT$801M year-over-year.

• Gross profit margin for 1H24 was 52%, compared to 43% in the same period last year.

• Basic EPS for 1H24 was NT$4.98, compared to NT$2.82 year-over-year.

Financial highlights

• 2Q24 gross margin improved to 48.6% from 44.1% a year ago.

• Operating profit margin rose to 24.4% in 2Q24 from 18.5% in 2Q23.

• Cash and cash equivalents stood at NT$4,490M as of June 30, 2024.

• Total assets reached NT$15,297M as of June 30, 2024, up from NT$13,730M a year earlier.

• Cash dividends of NT$3.05 per share (NT$911.6M) were distributed in 1H24.

Outlook and guidance

• 3Q24 consolidated revenue expected between NT$3.1B and NT$3.4B.

• Gross margin guidance for 3Q24 is 47.5% to 49.5%.

• Operating margin projected at 22.1% to 26.3% for 3Q24.

• Management notes only single-digit growth in the notebook industry in Q2 2024.

• The company continues to invest in R&D and capital expenditures, including a new factory project.