Lotes (3533) Q4 2024 earnings summary

Executive summary

• Revenue reached NT$30,088,992 thousand in 2024, up 23% year-over-year, with net profit rising to NT$9,381,037 thousand, a 64% increase from 2023.

• Gross margin improved to 52% from 47% year-over-year, and basic EPS increased to NT$82.77 from NT$50.65.

• Cash and cash equivalents rose to NT$18,658,882 thousand, and total assets increased to NT$50,211,049 thousand.

• Major revenue sources were Mainland China (78%) and Taiwan (11%), with strong growth in server and notebook segments.

• Board proposed a 2024 cash dividend of NT$41.50 per share, up from NT$26.00 in 2023.

Financial highlights

• Operating revenue grew 23% year-over-year; net profit margin increased to 32% from 23%.

• Operating expenses rose 18% to NT$5,524,850 thousand, but operating profit margin improved to 34%.

• Net cash from operating activities was NT$10,057,595 thousand, with free cash flow after investing activities at NT$5,370,528 thousand.

• Total equity increased to NT$37,959,872 thousand, with a debt-to-capital ratio of -20.31%.

• Dividend payout for 2024 is NT$4,670,190 thousand.

Outlook and guidance

• Management expects continued growth in server and notebook connector demand, with ongoing expansion in Mainland China and Vietnam.

• No significant impact anticipated from new IFRS standards effective in 2025 and 2027.

• Board approved a higher dividend for 2024, reflecting confidence in future cash flows.