Novatek Microelectronics (3034) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was nearly flat YoY, while gross profit, operating income, net income and EPS declined; Q4 revenue and earnings improved YoY but fell QoQ.

Financial highlights

• FY2023 net sales were NT$110,428,698 thousand, up 0.43% YoY; net income was NT$23,317,509 thousand, down 16.63%, and EPS was NT$38.32 vs. NT$45.96.

• FY2023 gross profit was NT$46,211,893 thousand, down 9.28%; operating income was NT$26,661,677 thousand, down 18.54%.

• Q4 net sales rose 21.11% YoY to NT$27,153,825 thousand; gross profit rose 23.91% to NT$11,263,599 thousand and operating income rose 21.06% to NT$6,306,278 thousand.

• Q4 net income increased 31.79% YoY to NT$5,327,954 thousand; EPS was NT$8.76 vs. NT$6.64.

• QoQ, Q4 revenue declined 6.14%, operating income declined 11.72% and net income declined 16.30%.

Outlook and guidance

• January 2024 sales were NT$8,720 million, up 21% YoY from NT$7,223 million in January 2023.