Nanya Technology (2408) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales were TWD 6.575 billion, down 19.2% sequentially and 24.5% year-over-year due to shipment and ASP declines.

• Gross profit was negative TWD 695 million, impacted by idle costs from power outages and production reduction.

• Net loss for Q4 was TWD 1.574 billion, with EPS at -0.51; full-year 2024 net loss was TWD 5.083 billion, EPS -1.64.

• 2024 net sales improved 14.2% year-over-year to TWD 34.132 billion, 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.

Financial highlights

• Q4 operating income was -TWD 2.812 billion, a larger loss than Q3.

• Q4 EBITDA was TWD 1.185 billion; non-operating income TWD 900 million; income tax benefit TWD 339 million.

• Operating expenses in Q4 were TWD 2.118 billion, down due to lower R&D charges.

• Free cash flow in Q4 2024 was -TWD 3.63 billion; year-end cash and equivalents: TWD 61.9 billion.

• Net cash position at year-end was TWD 36.6 billion after debt.

Outlook and guidance

• 2025 CapEx planned at up to TWD 20 billion, pending board approval.

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

• DRAM market may bottom out in 1H 2025 with recovery potential in Q2 2025; AI demand remains strong, while general PC and mobile demand is weak.

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

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