Far Eastern New Century (1402) Q2 2024 earnings summary

Executive summary

• Consolidated revenue for 1H24 reached NT$132.93B, up 6–7% year-over-year, with net income at NT$9.25B, a 27–31% increase from 1H23.

• Green revenue accounted for 22% of consolidated revenue in 1H24, reflecting a strong focus on sustainability.

• Major business combinations included the acquisition of Asia Pacific Telecom Co., Ltd. and Foxconn Global Network Corporation, expanding telecom operations.

• The company maintains a consistent dividend policy and continues to expand its global presence in recycled PET production.

Financial highlights

• 2Q24 revenue was NT$67.5B, up 7% year-over-year; profit from operations rose 29% to NT$4.86B.

• Gross profit for the six months was NT$26.00B, up from NT$22.86B year-over-year.

• Operating income reached NT$8.10B, a 20% increase year-over-year.

• EPS for 1H24 was NT$1.00, compared to NT$1.64 for full-year 2023.

• Book value per share as of June 30, 2024, was NT$42.8.

Outlook and guidance

• Targets Net Zero by 2050, with a 50% GHG reduction goal by 2030 and 25% reduction already achieved by 2023.

• The group expects continued growth in telecommunications and property development, with ongoing integration of recent acquisitions to drive operational synergies.

• Regulatory trends and upcoming carbon fee may impact future costs and drive demand for recycled PET products.