Nan Ya Printed Circuit Board (8046) Q3 2024 earnings summary

Executive summary

• Consolidated revenues for 2024 Q1–Q3 reached NT$24,413 million, a 26% decrease year-over-year from NT$32,942 million in 2023, with a market value of NT$92.1 billion as of September 30, 2024.

• Net profit for the nine months was NT$25 million, down sharply from NT$4,973 million in the prior year period.

• Gross margin for the nine months dropped to 1% from 22% year-over-year, highlighting margin compression.

• The business focuses on manufacturing and selling IC substrates and PCBs, with production in Taiwan and China.

• The company maintained compliance with all relevant accounting standards and received an unqualified review opinion from its independent auditors.

Financial highlights

• 2024 Q1–Q3 revenues declined 25.9% year-over-year, following a 29.8% drop in 2023 Q1–Q3 versus 2022, mainly due to ongoing inventory corrections in telecom and CE products.

• Quarterly revenues in 2024 showed a 23.7% drop in Q1 from 2023 Q4, but rebounded with 14.4% and 13.2% sequential growth in Q2 and Q3, respectively, driven by AI PC and high-end product launches.

• Operating profits for 2024 Q1–Q3 decreased by NT$6,515.9 million from 2023 Q1–Q3, reflecting weak telecom demand.

• Quarterly operating profit margin improved from -11.2% in Q1 to 7.4% in Q3 2024, as losses narrowed and product mix improved.

• Basic and diluted EPS for the nine months were both NT$0.04, a steep decline from NT$7.70 in 2023.

Segment performance

• Revenue contribution from telecom declined in 2024 Q1–Q3 due to delayed purchases and budget shifts to AI.

• Automotive sector revenue share decreased amid price competition and supply chain issues.

• AI and HPC product demand remained robust, increasing their revenue share.

• Consumer electronics demand improved as inventory correction ended, raising its sales ratio.

• All segments experienced significant revenue declines compared to the prior year.