King Slide Works Co (2059) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NT$5,762.971m and net income NT$2,704.319m; both were below FY2022, while gross margin increased to 61% from 57%.

• Auditors issued an unqualified opinion; revenue authenticity for selected customers was identified as a key audit matter.

Financial highlights

• Revenue fell to NT$5,762.971m from NT$7,798.631m; operating income was NT$2,888.154m vs. NT$3,752.672m, and net income was NT$2,704.319m vs. NT$4,056.145m.

• Gross profit was NT$3,531.532m vs. NT$4,465.976m; gross margin was 61% vs. 57%, and operating margin was 50% vs. 48%.

• Basic EPS was NT$28.38 vs. NT$42.56; diluted EPS was NT$28.02 vs. NT$41.84.

• Operating cash flow was NT$3,278.065m vs. NT$3,938.303m; year-end cash and cash equivalents rose to NT$12,602.683m from NT$11,592.473m.

• Other gains and losses were NT$42.585m vs. NT$1,161.814m, including a net FX loss of NT$32.240m vs. a net FX gain of NT$1,103.179m.

Segment performance

• The server and network rail segment reported revenue of NT$4,312.535m and segment profit of NT$2,593.948m, vs. NT$5,935.147m and NT$3,317.440m in FY2022.

• The other rail, furniture hardware and related segment reported revenue of NT$1,396.716m and segment profit of NT$292.439m, vs. NT$1,779.461m and NT$413.869m in FY2022.