Faraday Technology (3035) Q4 2023 earnings summary

Executive summary

• FY23 revenue declined 8.4% YoY to NT$11,966M; net income fell 37.8% to NT$1,561M, with lower gross, operating and net margins.

• 4Q23 revenue was NT$2,824M, down 4.7% QoQ and 13.1% YoY; net income was NT$355M, down 28.7% YoY, and net income attributable to parent stockholders was NT$320M.

Financial highlights

• 4Q23 gross profit was NT$1,297M, up 1.2% QoQ and down 16.2% YoY; operating income was NT$457M, up 6.7% QoQ and down 29.9% YoY.

• 4Q23 EPS was NT$1.29, down 9.6% QoQ and 39.0% YoY; operating expenses fell 2% QoQ.

• FY23 gross profit was NT$5,307M, down 16.8% YoY; operating income was NT$1,956M, down 33.1%, and EPS was NT$6.39 versus NT$9.88.

• FY23 net income attributable to parent was NT$1,589M, compared with NT$2,455M in 2022.

Segment performance

• 4Q23 billing mix: MP NT$2,179M, NRE NT$298M and IP NT$347M; shares were 77%, 11% and 12%, respectively.

• FY23 billing: MP NT$8,839M, down 11.6% YoY; NRE NT$1,725M, up 0.3%; IP NT$1,402M, up 4.4%.

• FY23 NRE revenue reached a record NT$1,725M; IP and NRE each recorded a third consecutive year of growth.

• 4Q23 NRE application mix was 10% communication, 57% industrial, 13% AIoT and 20% MM/Con/PC; MP mix was 7%, 38%, 49% and 6%, respectively.