Far Eastern New Century (1402) Q3 2024 earnings summary

Executive summary

• Consolidated revenue for 1-3Q24 reached NT$200.2B, up 5% year-over-year, with growth in telecommunications, construction, and production segments.

• Net income for the period was NT$13.3B, a 20% increase year-over-year, driven by improved gross profit and non-operating gains.

• Earnings per share for the nine months were NT$1.40, compared to NT$1.14 in the prior year period.

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

• The company maintains a consistent dividend policy, with a payout ratio above 77%.

Financial highlights

• Operating income for 1-3Q24 was NT$13.1B, a 20% increase year-over-year.

• Gross profit margin improved to 20% for the nine months, up from 19% year-over-year.

• Book value per share as of 9/30/2024 was NT$43.1.

• Total assets as of 9/30/2024 were NT$672.1B, with equity attributable to owners at NT$230.5B.

• Cash and cash equivalents at period end were NT$30.5B.

Outlook and guidance

• The company targets to be the global No.1 R-PET supplier, with ongoing expansion in Japan, US, China, Vietnam, Philippines, and Malaysia.

• Management expects continued growth in telecommunications and property development, with ongoing investments in network infrastructure and real estate projects.

• Committed to achieving net zero GHG emissions by 2050, with a 50% reduction goal by 2030.

• The Group will recognize carbon fee provisions starting in 2025 due to new environmental regulations.