GlobalWafers (6488) Q4 2024 earnings summary

Executive summary

• 2024 revenue was TWD 62.6 billion, down 11.4% year-over-year, but still the third highest in company history, with Q4 revenue at NT$16.3 billion, up 3.0% sequentially despite economic headwinds.

• Net profit for 2024 was NT$9.8 billion, with EPS of NT$21.06 and a planned dividend payout of NT$11.0 per share (52.2% payout ratio).

• Both companies faced profitability impacts from mark-to-market losses on Siltronic AG shares, which are accounting losses and do not affect cash flow.

• SAS reported 2024 revenue of TWD 79.7 billion, net profit margin of 14.6%, and EPS of TWD 9.24 per share.

• Major investments included acquisitions to expand 5G and satellite communication product lines.

Financial highlights

• 2024 gross margin was 31.6%, operating margin 22.5%, and net margin 15.7%; Q4 2024 gross margin was 30.1%, operating margin 21.9%, and net margin 2.9%.

• Excluding Siltronic valuation, GlobalWafers' EBITDA margin was 36% and EPS TWD 28.97; SAS adjusted net margin was close to 20% and adjusted EPS TWD 12.29.

• SAS's 2024 EBITDA margin was 28%, ROE 11.8%, and ROA 5.03%.

• EBITDA for 2024 was NT$18.0 billion (28.8% margin), down 41.2% year-over-year.

• Group companies like Actron, AWSC, and TSC achieved record or near-record revenues and EPS growth in 2024.

Outlook and guidance

• GlobalWafers expects 2025 to start slow but improve sequentially, with each quarter surpassing the previous and double-digit growth anticipated.

• 2026 is forecasted to be a much stronger year as inventory and tariff uncertainties resolve.

• SAS expects Taiwan's renewable energy market to accelerate in the second half of 2025, driven by new government policies and strong corporate ESG demand.

• Global semiconductor sales projected to surpass US$1.3 trillion by 2030, with capacity expanding at a 6.6% CAGR.

• Silicon photonics market forecasted to grow 8.6x from 2025 to over US$50 billion by 2035.