Lungteh Shipbuilding (6753) Q4 2024 earnings summary

Executive summary

• Revenue increased to NT$5,119,080 thousand in 2024, up 2.6% year-over-year, with net profit rising to NT$706,623 thousand, a 23% increase from 2023.

• Gross margin improved to 23% from 19% year-over-year, reflecting better cost management and higher value contracts.

• Major revenue sources remain shipbuilding contracts and vessel maintenance, with significant contracts in progress and a strong backlog.

• The company issued its first domestic unsecured convertible bonds in June 2024, raising NT$1,000,000 thousand.

Financial highlights

• Sales revenue: NT$5,119,080 thousand (2024), up from NT$4,987,411 thousand (2023).

• Net profit: NT$706,623 thousand (2024), up from NT$574,998 thousand (2023).

• Basic EPS: NT$6.25 (2024) vs. NT$5.16 (2023, retrospectively adjusted).

• Total assets: NT$10,157,988 thousand (2024), up from NT$9,067,233 thousand (2023).

• Total equity: NT$3,690,778 thousand (2024), up from NT$3,032,869 thousand (2023).

Outlook and guidance

• Backlog of unsatisfied performance obligations at year-end 2024 was NT$7,005,726 thousand, with expected completion in 7–21 months.

• Proposed 2024 cash dividend of NT$1.25 per share, pending shareholder approval.

• Management expects continued revenue recognition from ongoing shipbuilding contracts and maintenance services.