Pegatron (4938) Q2 2024 earnings summary

Executive summary

• Net revenue for 2Q2024 was NT$253.7Bn, up 1% QoQ but down 10% YoY, reflecting weaker demand in Consumer and Communication segments, partially offset by growth in Computing.

• Net income for 2Q2024 reached NT$6.2Bn, a 77.4% YoY increase and 64.2% QoQ increase, driven by improved product mix and higher non-operating income.

• Revenue for the six months ended June 30, 2024 was NT$504.1Bn, down from NT$598.8Bn YoY.

• Net income for the six months was NT$9.99Bn, up from NT$6.77Bn YoY.

• Significant gain of NT$1.7Bn recognized from loss of control and remeasurement of PEGAGLOBE KUNSHAN.

Financial highlights

• 1H2024 net revenue was NT$504.1Bn, down 15.8% YoY; gross profit rose 6.2% YoY to NT$22.2Bn.

• Operating income for 1H2024 was NT$14.7Bn, up from NT$9.2Bn YoY.

• EPS for 2Q2024 was NT$2.10, up 79.5% YoY and 72.1% QoQ; basic EPS for six months was NT$3.32, up from NT$2.30 YoY.

• Cash and equivalents at 2Q2024 end were NT$105.3Bn, up from NT$79.8Bn a year ago.

• Net cash from operating activities for the six months was NT$25.4Bn, down from NT$42.6Bn YoY.

Outlook and guidance

• Revenue from Computing expected to remain strong due to favorable product mix and higher ASP.

• Consumer and Communication segments face ongoing demand softness.

• Adoption of new IFRS standards is not expected to have a significant impact; IFRS 18 will be evaluated for future impact.

• No significant current tax impact from global minimum tax for the six months ended June 30, 2024.