Lungteh Shipbuilding (6753) Q3 2024 earnings summary

Executive summary

• Founded in 1976, the company specializes in mid- to high-speed vessel design and construction, with 572 vessels built as of November 2024.

• Main products include passenger ferries, research vessels, patrol boats, and advanced military craft.

• Holds ISO certifications for quality, environment, information security, and occupational safety.

• Revenue for the nine months ended September 30, 2024, was NT$3,408.7 million, down 9% year-over-year; net income rose 68% to NT$564.4 million for the same period.

• Gross margin improved to 27% from 15% year-over-year, reflecting better cost control and project mix.

Financial highlights

• Revenue for 2022 was NT$4.99 billion, up from NT$3.83 billion in 2021; Q3 2023 YTD revenue was NT$3.41 billion.

• Net income for 2022 was NT$575 million, up from NT$287 million in 2021; Q3 2023 YTD net income was NT$564 million.

• EPS rose to NT$5.43 in 2022 from NT$2.93 in 2021; Q3 2023 YTD EPS was NT$5.21.

• Operating income for the nine months was NT$782.4 million, up 72% year-over-year.

• Cash and cash equivalents at September 30, 2024, were NT$3,192.7 million, up from NT$416.0 million a year earlier.

Outlook and guidance

• Backlog includes NT$7.2 billion in new shipbuilding orders (to be completed by 2026) and NT$4.6 billion in maintenance orders (to be completed by 2040).

• Backlog of unfulfilled contracts at September 30, 2024, was NT$8,433.5 million, with expected completion over the next 1–23 months.

• 2024 revenue mix expected: 82% domestic newbuilds, 11% exports, 7% domestic maintenance, 6% export maintenance.

• 52 business opportunities totaling NT$42.9 billion identified for 2024, with 42 in tender and 10 in budget planning.

• International military vessel market forecasted to grow at a 12.6% CAGR through 2032.