Nanya Technology (2408) Q4 2023 earnings summary

Executive summary

• Q4'23 sales rose 12.5% QoQ and 9.4% YoY as shipment, ASP and FX improved; net loss was NT$2,488M, versus NT$2,505M in Q3'23.

• FY2023 net sales fell 47.5% YoY to NT$29,892M, with a net loss of NT$7,448M versus net income of NT$14,619M in 2022.

Financial highlights

• Q4'23 gross loss was NT$1,188M; gross loss narrowed NT$765M QoQ, mainly on higher ASP and lower idle costs.

• Q4'23 operating loss was NT$4,050M; operating expenses rose NT$475M QoQ, mainly from higher R&D expenses.

• FY2023 gross loss was NT$4,483M versus gross profit of NT$21,342M in 2022; operating loss was NT$14,460M versus operating income of NT$11,002M.

• FY2023 net loss included non-operating income of NT$3,756M and an income tax benefit of NT$3,256M.

Outlook and guidance

• 2024 bit shipments are expected to increase more than 20% YoY; production output may gradually resume normal levels.

• 2024 DRAM demand is expected to improve by quarter; price rebound that began in Q4'23 is likely to continue.

• Second 10nm-class 1B 8Gb DDR4 and 16Gb DDR5 products are expected to enter volume production in 2024.