Fositek (6805) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was NT$1,988.3m and net income NT$334.2m, versus NT$1,563.8m and NT$197.8m in Q3 2023; revenue rose 27.14% and net income 68.92% YoY.

• 9M 2024 revenue reached NT$5,417.9m and net income NT$814.4m, up 40.16% and 80.06% YoY, respectively.

• Independent accountants issued a qualified review conclusion because certain non-significant subsidiaries and investees were not reviewed.

Financial highlights

• Q3 gross profit was NT$483.8m and operating income NT$331.7m; gross margin was 24.33% and operating margin 16.68%, versus 23.16% and 16.00% a year earlier.

• 9M gross profit was NT$1,295.2m and operating income NT$854.1m, up 46.83% and 49.98% YoY, respectively.

• Q3 pretax income was NT$379m, up 28.54% YoY; income tax was NT$44m, down 54.04% YoY.

• Basic EPS was NT$4.87 in Q3 and NT$11.88 for 9M 2024, versus NT$3.27 and NT$7.48; 9M diluted EPS was NT$11.87.

Segment performance

• 9M 2024 product mix: foldable phones 84.5% of revenue, NB 12.0%, servers 2.1%, and other 1.4%; foldable phones were 82.1% in 2023.

• One reportable segment covers computer and mobile-phone components; operations are aggregated based on similar gross margins and expected cost rates. Revenue is recognized primarily at a point in time on sales of goods.