Lotes (3533) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenue reached NT$7,374 million, up 29% year-over-year; H1 2024 revenue was NT$13,722 million, up 20% year-over-year.

• Net profit for Q2 2024 was NT$2,265 million, up 76% year-over-year; H1 2024 net profit was NT$4,370 million, up 77% year-over-year.

• Gross margin for Q2 2024 was 52%, consistent with H1 2024; operating margin improved to 34% in H1 2024.

• Basic EPS for Q2 2024 was NT$20.00, and for H1 2024 was NT$38.58, both significantly higher than prior year periods.

• Strong cash position with NT$17,887 million in cash and equivalents as of June 30, 2024.

Financial highlights

• Operating income for Q2 2024 was NT$2,566 million, up 71% year-over-year; H1 2024 operating income was NT$4,596 million, up 52% year-over-year.

• EBITDA for H1 2024 was NT$5,434 million, up from NT$4,231 million in H1 2023.

• H1 2024 gross profit was NT$7,114 million, up 37% year-over-year.

• Interest income for H1 2024 was NT$264 million, up 107% year-over-year.

• Foreign exchange gains contributed NT$689 million in H1 2024, up from NT$193 million in H1 2023.

Outlook and guidance

• Management notes seasonality in operations due to downstream computer industry cycles.

• No significant impact expected from new IFRS standards effective in 2025; company is evaluating IFRS 18 for 2027.