Hiwin Technologies (2049) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was NT$11.69 billion, down 5% year-over-year; Q2 revenue was NT$6.18 billion, a 6% decrease compared to the same quarter last year.

• Net income attributable to owners for H1 2024 was NT$977 million, down from NT$1.07 billion year-over-year; Q2 net income was NT$582 million, a 7% decrease.

• Gross margin for H1 2024 was 30%, down from 32% year-over-year; Q2 gross margin was 32%.

• Basic EPS for H1 2024 was NT$2.76, compared to NT$3.03 in the prior year; Q2 EPS was NT$1.65.

Financial highlights

• Operating income for H1 2024 was NT$1.06 billion, a 31% decrease year-over-year; Q2 operating income was NT$656 million, down 32%.

• Operating expenses for H1 2024 totaled NT$2.48 billion, up slightly from NT$2.43 billion year-over-year.

• Net cash from operating activities in H1 2024 was NT$2.05 billion, up from NT$1.69 billion year-over-year.

• Total assets as of June 30, 2024, were NT$52.8 billion; equity attributable to owners was NT$35.3 billion.

• Cash and cash equivalents at period end were NT$7.82 billion.

Outlook and guidance

• Management expects to meet new climate-related regulatory thresholds in 2024, with potential carbon fee impacts yet to be determined.

• Ongoing evaluation of international tax law changes (Pillar Two) may affect future effective tax rates.