ITEQ (6213) Q4 2024 earnings summary

Executive summary

• Achieved FY2024 revenue of NT$29.4 billion, up 17.1% year-over-year, with net income to parent rising 21.5% to NT$822 million.

• Gross profit for FY2024 increased 18.8% to NT$3.69 billion, with operating profit up 35.8% to NT$1.35 billion.

• Q4 2024 revenue was NT$7.66 billion, down 3.8% sequentially but up 13.6% year-over-year; net income to parent for the quarter was NT$219 million.

• Major revenue contributions came from Asia, accounting for over 99% of total sales.

Financial highlights

• FY2024 gross margin was 12.56%, slightly higher than FY2023's 12.38%; Q4 2024 gross margin improved to 13.34% from 11.73% in Q3 2024.

• FY2024 EPS was NT$2.26, up from NT$1.86 in FY2023.

• Operating margin for FY2024 was 4.60%, up from 3.97% in FY2023.

• Operating expenses increased to NT$2,339,295 thousand, mainly due to higher R&D and selling expenses.

• Cash and cash equivalents at year-end: NT$4,583,412 thousand.

Outlook and guidance

• Secular growth expected in network infrastructure and data centers, driven by high-speed/frequency laminate demand.

• Generative AI and automotive electronics anticipated to boost CCL content growth.

• Expansion plans include new manufacturing capacity in Thailand and ongoing investments in R&D and capex.

• Cash dividend of NT$1.8 per share for 2024 approved by the board.

• Adoption of new IFRS standards in 2025 and 2027 is not expected to have significant impact.