Pegatron (4938) Q3 2024 earnings summary

Executive summary

• Net revenue for 3Q2024 reached NT$294.2Bn, up 16% sequentially but down 6.8% year-over-year, reflecting seasonal strength but weaker annual demand.

• Net income attributable to the parent for 3Q2024 was NT$4.3Bn, a 6.3% decrease year-over-year and a 23.1% drop sequentially.

• EPS for 3Q2024 was NT$1.61, down from NT$2.10 in the previous quarter and NT$1.72 in 3Q2023.

• Revenue for the nine months ended September 30, 2024 was NT$798.3Bn, down from NT$914.6Bn year-over-year, with net profit at NT$14.97Bn, up from NT$11.61Bn.

• The group lost control over PEGAGLOBE KUNSHAN, reclassifying it as an associate and recognizing a NT$1.7Bn gain on disposal.

Financial highlights

• Gross profit for 3Q2024 was NT$12.04Bn, representing a 4.1% margin, slightly up from 3.9% in 3Q2023.

• Operating income for 3Q2024 was NT$3.64Bn, down 18.8% year-over-year but up 24% sequentially.

• Net profit for Q3 2024 was NT$4.98Bn, up from NT$4.83Bn in Q3 2023.

• Cash and cash equivalents increased to NT$111.3Bn as of September 30, 2024, from NT$98.5Bn a year earlier.

• Net cash from operating activities for the nine months was NT$46.4Bn, down from NT$68.5Bn year-over-year.

Outlook and guidance

• Management highlighted that revenue growth in 3Q2024 was driven by peak seasonality across all product segments, but annual demand, especially in the Consumer segment, remains weak.

• The group adopted new IFRS amendments in 2024 with no significant impact and is evaluating future standards, including IFRS 18, effective 2027.