HD Renewable Energy (6873) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2023 was NT$1,272 million, down 12% year-over-year; first half revenue grew 5% to NT$2,156 million.

• Net income for Q2 2023 was NT$113 million, a 22% decrease year-over-year; first half net income was NT$155 million, down 29% year-over-year.

• Gross margin for Q2 improved to 25% from 20% in the prior year; first half gross margin was 25%.

• The company remains focused on solar and energy storage project development, engineering, and asset management.

Financial highlights

• Operating income for Q2 2023 was NT$160 million, up 5% year-over-year; first half operating income was NT$263 million, up 5%.

• Basic EPS for Q2 2023 was NT$1.10, down from NT$1.43 last year; first half EPS was NT$1.56, down from NT$2.26.

• Cash and equivalents at June 30, 2023, were NT$5,402 million, up from NT$2,531 million a year ago.

• Total assets reached NT$16,242 million, up 102% year-over-year.

• Total liabilities increased to NT$10,377 million, up 44% year-over-year.

Outlook and guidance

• Backlog of unfulfilled contract value was NT$23,671 million as of June 30, 2023, to be recognized over the next 1–3 years.

• Management expects continued revenue recognition as solar and storage projects progress.