Eurocharm (5288) Q2 2024 earnings summary

Executive summary

• Eurocharm Holdings reported consolidated revenue of NT$3,675,443 thousand for the six months ended June 30, 2024, up slightly from NT$3,632,290 thousand year-over-year.

• Net income for the six-month period was NT$558,190 thousand, an increase from NT$457,225 thousand in the prior year period.

• Gross profit rose to NT$808,759 thousand from NT$751,278 thousand year-over-year, with gross margin improvement.

• The company maintained a strong cash position, with cash and cash equivalents at NT$1,196,910 thousand as of June 30, 2024.

• The board approved the issuance of 200,000 restricted stock awards to employees, pending board resolution.

Financial highlights

• Operating income for the six-month period was NT$569,130 thousand, up from NT$548,129 thousand year-over-year.

• Earnings per share (EPS) for the six months were NT$8.37 basic and NT$8.08 diluted, compared to NT$6.93 and NT$6.65, respectively, in the prior year.

• Total assets stood at NT$7,409,851 thousand, with total equity of NT$5,356,687 thousand as of June 30, 2024.

• Cash flows from operating activities were NT$713,039 thousand, while investing and financing activities resulted in net outflows.

• Dividends of NT$7.8 per share were distributed for 2023 earnings.

Outlook and guidance

• The company continues to focus on manufacturing and sales of motorcycle, auto equipment, and medical equipment parts, with ongoing investments in Vietnam and Taiwan.

• No material impact is expected from new or amended accounting standards effective after January 1, 2025.