ITEQ (6213) Q3 2024 earnings summary

Executive summary

• Achieved revenue of NT$7,963 million in 3Q24, up 4.8% QoQ and 19.8% YoY, with net income to parent at NT$249 million, up 24.5% QoQ and 6.2% YoY.

• Consolidated financial statements for the nine months ended September 30, 2024 and 2023 were reviewed, with a qualified conclusion due to certain subsidiaries and equity-accounted investees not reviewed by independent auditors.

• Maintained leadership in specialty laminate with a 19.3% global market share in 2022, driven by innovation and expansion in high-speed/frequency materials.

• Product mix continues to shift toward infrastructure and automotive, with infrastructure revenue up 8.2% QoQ and 29.8% YoY.

• The group operates in manufacturing and sales of mass lamination boards, copper clad laminates, prepreg products, and related electronic components.

Financial highlights

• Operating revenue for the nine months ended September 30, 2024 was $21,713,466 thousand, up from $18,334,818 thousand year-over-year.

• Net profit for the nine months ended September 30, 2024 was $603,050 thousand, compared to $350,195 thousand for the same period last year.

• Gross margin for 3Q24 was 11.73%, down from 12.50% in 2Q24 and 13.55% in 3Q23; gross margin for the nine months ended September 30, 2024 was 12%.

• Operating margin was 4.77% in 3Q24, up from 4.45% in 2Q24 but down from 5.87% in 3Q23; operating margin for the nine months ended September 30, 2024 was 4%.

• EPS for 3Q24 was NT$0.69, up 25.5% QoQ and 6.2% YoY; basic and diluted EPS for the nine months ended September 30, 2024 were both $1.66, up from $0.96 year-over-year.

Outlook and guidance

• Global server shipment CAGR forecasted at +6% from 2023 to 2028, with generative AI driving demand for both AI and general-purpose servers.

• Expansion in automotive electronics and EVs expected to boost high-performance CCL demand, with PCB usage in EVs 4–5 times higher than gasoline vehicles.

• The group adopted new IFRS amendments in 2024 with no significant impact and is evaluating future standards, including IFRS 18, effective January 1, 2027.

• No major subsequent events or losses due to disasters reported after the reporting period.