Elite Material Co (2383) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NT$41.296B, up 6.8% YoY; gross margin reached a record 27.4% and pretax profit margin a record 18.0%.

• FY2023 net income rose 8.1% to NT$5.488B, with basic EPS of NT$16.35; a January 2023 fire caused NT$537.959M in recognized losses, matched by an insurance claim receivable, with final recovery subject to negotiations.

Financial highlights

• Q4 revenue was NT$12.882B, up 8.5% QoQ and 44.9% YoY; gross profit rose 1.9% QoQ and 53.0% YoY to NT$3.651B.

• Q4 operating profit was NT$2.451B, down 2.2% QoQ and up 61.0% YoY; net income was NT$1.986B, down 1.8% QoQ and up 46.1% YoY.

• FY2023 gross profit was NT$11.333B, operating profit NT$7.346B and profit before tax NT$7.420B, up 16.7%, 18.0% and 17.8% YoY, respectively.

• FY2023 net income was NT$5.488B, versus NT$5.076B in 2022; total comprehensive income was NT$5.177B, versus NT$5.447B.

Outlook and guidance

• High-end CCL market forecast to grow at 27% CAGR in 2023–2025, versus 10% for the overall CCL market; expectation to outgrow the high-end market.

• 2024 capacity totals 4.2M SHTS/month for laminates and 13.6M meters/month for prepreg; planned 2025 capacity rises to 4.8M SHTS/month and 14.5M meters/month.

• Penang Phase 1 adds 600K SHTS/month, with mass production expected in early 2025.