National Aerospace Fasteners (3004) Q4 2024 earnings summary

Executive summary

• 2024 consolidated revenue reached NT$3.502 billion, up 14.04% year-over-year, with net profit after tax of NT$376 million and EPS of NT$6.88, a 19.24% increase in EPS from 2023.

• Growth driven by increased global airline passenger capacity and strong aviation market demand, despite supply chain challenges and Boeing strike impacts.

• Certified as a qualified supplier by Pratt & Whitney in June 2024, now supplying all four major global aerospace engine manufacturers.

• Board approved investment in Malaysia for production base diversification; permits obtained and project underway.

Financial highlights

• Gross profit rose 19.35% to NT$969.8 million; operating income up 36.18% to NT$467.7 million year-over-year.

• Operating expenses increased 7.02% to NT$502.1 million; non-operating income and expenses decreased by 62.42%.

• Total assets grew 24.31% to NT$6.31 billion, with current assets up 42.14% and property, plant, and equipment up 10.52%.

• Total liabilities increased 30.47% to NT$3.59 billion, mainly due to higher long-term borrowings for capacity expansion.

• Cash dividend of NT$3.02 per share approved for 2024.

Outlook and guidance

• Aviation industry expected to maintain stable growth over the next two decades, with over 40,000 new and replacement aircraft needed.

• Main challenges include supply chain bottlenecks and geopolitical trade risks; company increasing inventories and expanding in Malaysia to mitigate.

• 2025 sales volume target set at 185,169 thousand pieces, with continued focus on R&D and smart manufacturing.