Lotes (3533) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, reached NT$21,788,856 thousand, up 21.6% year-over-year, with net profit at NT$6,457,558 thousand, a 44.9% increase from the prior year.

• Gross margin improved to 52% from 46% year-over-year, reflecting higher sales and operational efficiency.

• Earnings per share for the nine months were NT$56.90 basic and NT$56.53 diluted, up from NT$39.36 and NT$39.02, respectively.

• The company completed full conversion of its second domestic unsecured convertible bonds and subsidiary bonds into common shares by July 2024.

• Board resolutions in November 2024 authorized up to NT$1 billion for real estate acquisition and NT$600 million for subsidiary expansion.

Financial highlights

• Operating revenue for Q3 2024 was NT$8,066,738 thousand, up 24.8% from Q3 2023.

• Net profit for Q3 2024 was NT$2,087,499 thousand, a 8.4% increase year-over-year.

• Cash and cash equivalents rose to NT$18,604,449 thousand as of September 30, 2024, from NT$12,571,654 thousand a year earlier.

• Net cash flows from operating activities for the nine months were NT$7,673,884 thousand.

• Total assets increased to NT$47,636,769 thousand, with equity attributable to owners at NT$33,161,039 thousand.

Outlook and guidance

• Management expects continued growth, supported by strong demand in server, automotive, and high-speed cable segments.

• The company is expanding production capacity and investing in new facilities to meet long-term operational needs.

• No material impact is expected from new IFRS standards effective in 2025; IFRS 18 will be evaluated for 2027.