Nanya Technology (2408) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales were NT$6,575 million, down 19.2% sequentially and 24.5% year-over-year, with a net loss of NT$1,574 million and EPS of -0.51; full-year 2024 net loss was NT$5,083 million, EPS -1.64.

• Full-year 2024 sales revenue rose 14.2% year-over-year to NT$34,132 million, mainly from ASP increases.

• Gross margin improved to -1.2% for 2024 from -15.0% in 2023, mainly due to ASP increases and lower idle costs.

• 2nd 10nm-class (1B) ramping up, expected to exceed 30% of total output by 2025; new DDR5 products delivered and in pipeline.

• Q4 2024 net margin was -23.9%.

Financial highlights

• Q4 2024 operating loss was NT$2,812 million, with an operating margin of -42.8%.

• Q4 2024 EBITDA was NT$1,185 million; non-operating income was NT$900 million; income tax benefit was NT$339 million.

• Q4 2024 gross margin was -10.6%; EBITDA margin was 18.0%.

• Operating expenses in Q4 were NT$2,118 million, down due to lower R&D charges.

• Book value per share at year-end was NT$53.27.

Outlook and guidance

• 2025 CAPEX planned at up to NT$20 billion, pending board approval.

• Bit shipment expected to grow over 20% in 2025, after being flat in 2024.

• Anticipates market recovery for non-AI DRAM in second half of 2025, with AI demand remaining strong.

• Strategic partnerships and new product launches planned to capture AI edge computing growth.

• Cost reductions, especially in depreciation, expected to improve margins by Q4 2025.