Hiwin Technologies (2049) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was NT$24.39 billion, a slight decrease from NT$24.63 billion in 2023, with net profit attributable to owners at NT$1.97 billion, down from NT$2.03 billion.

• Gross margin declined to 30% from 31% year-over-year, and EPS was NT$5.57 (basic), compared to NT$5.75 in 2023.

• Total assets increased to NT$54.42 billion, and equity attributable to owners rose to NT$36.93 billion.

• Major business segments include linear guideways, ballscrews, and others, with linear guideways contributing the largest share of revenue.

• The audit opinion was unqualified, with revenue recognition identified as a key audit matter.

Financial highlights

• Operating income was NT$2.06 billion, down from NT$2.65 billion year-over-year.

• Net profit for the year was NT$1.86 billion, with total comprehensive income at NT$2.81 billion.

• Cash and cash equivalents at year-end were NT$7.35 billion, a decrease from NT$7.56 billion.

• Dividends per share for 2024 proposed at NT$2.4, down from NT$2.5 in 2023.

• Inventory write-downs increased to NT$207 million in 2024 from NT$13 million in 2023.

Outlook and guidance

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

• Management does not anticipate material impact from new or amended IFRS standards effective in 2025.