Inventec (2356) Q1 2024 earnings summary

Executive summary

• Consolidated revenue for Q1 2024 was NT$130.5 billion, up 8.6% year-over-year, with net income of NT$1.08 billion, a 24% increase from Q1 2023.

• Gross margin remained stable at 5%, while operating margin improved to 1.6% from 1.1% year-over-year.

• Cash and cash equivalents at quarter-end were NT$39.4 billion, up from NT$28.1 billion at the end of 2023.

Financial highlights

• Operating income for Q1 2024 was NT$2.14 billion, up 66% year-over-year.

• Basic and diluted EPS for Q1 2024 were both NT$0.30, compared to NT$0.25 and NT$0.24 in Q1 2023.

• Total assets increased to NT$252.0 billion from NT$239.7 billion at year-end 2023.

• Operating cash flow for Q1 2024 was NT$11.9 billion, compared to NT$14.5 billion in Q1 2023.

Outlook and guidance

• Management expects continued growth in core computer and smart device segments, with ongoing investments in R&D and production capacity.

• The company is monitoring global minimum tax regulations and expects no material impact in the current period.