Lungteh Shipbuilding (6753) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was NT$2,412 million, a slight decrease from NT$2,498 million year-over-year.

• Net income for the first half of 2024 reached NT$471 million, up from NT$238 million year-over-year.

• Gross margin improved to 31% for both Q2 and the first half of 2024, compared to 14% and 16% in the same periods last year.

• The company issued its first domestic unsecured convertible bond of NT$1 billion in June 2024.

Financial highlights

• Q2 2024 revenue was NT$1,273 million, up 30% year-over-year; gross profit was NT$392 million, up 176%.

• Operating income for Q2 2024 was NT$347 million, up 209% year-over-year.

• Basic EPS for Q2 2024 was NT$2.01, and NT$4.38 for the first half, both significantly higher than last year.

• Cash and cash equivalents at June 30, 2024, were NT$2,468 million, down from NT$3,143 million at year-end 2023.

• Total assets increased to NT$9,798 million as of June 30, 2024, from NT$9,067 million at year-end 2023.

Outlook and guidance

• Outstanding contract value for incomplete customer contracts was NT$9,288 million as of June 30, 2024, with expected completion over the next 1–26 months.

• The company continues to monitor market and industry trends, including inflation and interest rate fluctuations, in its estimates.