Hiwin Technologies (2049) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached NT$6,326 million, up 2% sequentially but down 4% year-over-year.

• Net profit attributable to Hiwin was NT$664 million, a 14% increase quarter-over-quarter and 5% higher year-over-year.

• Revenue for the nine months ended September 30, 2024 was NT$18,015.9 million, down 5% year-over-year, with net profit at NT$1,560.0 million, up 2% from the prior year.

• Basic EPS for Q3 2024 was NT$1.78; cumulative EPS for the first three quarters was NT$4.64, slightly below the NT$4.81 from the same period last year.

• The company maintained a strong equity position, with total equity at NT$36,326.5 million as of September 30, 2024.

Financial highlights

• Gross profit for Q3 2024 was NT$1,589 million, with a gross margin of 25.1%, down from 33.3% in Q3 2023.

• Net profit for Q3 2024 was NT$641.4 million, up 18% year-over-year.

• Operating profit was NT$179 million, representing 2.8% of sales, a 4% increase sequentially but a 27% decline year-over-year.

• Cash and cash equivalents at period end were NT$6,419.6 million, down from NT$7,526.7 million a year earlier.

• Net cash from operating activities for the nine months was NT$2,599.6 million, a decrease from NT$3,736.1 million in the prior year.

Outlook and guidance

• The company expects to be subject to carbon fees starting January 2025, with provisions to be recognized based on actual emissions.

• Management is monitoring the impact of Pillar Two global minimum tax legislation, with approximately 9% of profits potentially affected.