ENNOSTAR (3714) Q4 2024 earnings summary

Executive summary

• Announced merger of EPISTAR and Lextar into a single subsidiary, Ennostar Corporation, effective October 1, 2025, to accelerate optoelectronics innovation and value-added solutions.

• Strategic shift from parts supplier to provider of field applications and solutions, with a dual value-added strategy and 3+1 long-term development approach focused on automotive, advanced display, smart sensing, and emerging markets.

• Organizational streamlining, efficiency improvements, and expenditure reduction measures saved over NT$200 million in 2024.

• Net loss attributable to owners was NT$1.385 billion in 2024, with basic loss per share of NT$1.87, showing significant improvement over 2023.

• The company joined RE100, targeting 60% renewable energy by 2030 and 100% by 2050.

Financial highlights

• Full-year 2024 net revenue grew 9.33% to NT$24.39 billion, with gross profit up 184.11% to NT$3.32 billion and operating loss reduced by 59.41% to NT$1.62 billion.

• Net loss after tax narrowed by 75.87% to NT$1.77 billion; basic EPS for 2024 was NT$(1.87), a significant improvement from NT$(9.02) in 2023.

• Gross margin improved to 13.6% in 2024 from 5.2% in 2023; EBITDA margin for 4Q24 was 6.0%.

• Net cash inflow from operating activities was NT$3.22 billion, up 35.37% from 2023.

• Capital expenditures for 2024 were NT$1.43 billion, funded by internal resources and private equity.

Outlook and guidance

• Projecting sequential growth for the rest of the year, driven by increased value-added product contributions and automotive applications.

• The company will continue internal restructuring and transformation, focusing on high-value markets and comprehensive solutions.

• Ongoing investment in R&D, with NT$2.51 billion planned for 2025.