Primax Electronics (4915) Q2 2026 earnings summary

Executive summary

• 2Q26 revenue reached NT$17.21bn, up 18% YoY, driven by strong consumer audio and professional audio project growth.

• Net profit for 2Q26 was NT$580mn, down 21% YoY; 1H26 net profit was NT$1.18bn, down 19.9% YoY.

• Gross margin for 2Q26 was 15%, down from 17% YoY, impacted by RMB appreciation, cost pressures, and unfavorable product mix.

• EPS for 2Q26 was NT$1.26, a 21.3% decrease YoY; six-month EPS was NT$2.55 basic and NT$2.53 diluted.

• R&D expenses rose 2% YoY to NT$881mn, representing 5.1% of revenue, reflecting continued investment in technology innovation.

Financial highlights

• Operating margin for 2Q26 was 3.7%, down from 4.1% YoY.

• 1H26 revenue totaled NT$33.13bn, up 12.8% YoY.

• Free operating cash flow for 2Q26 was negative NT$785mn, with ending cash balance at NT$11.33bn.

• Gross profit for 2Q26 was NT$2,555.8mn.

• Six-month operating revenue: NT$33,130.2mn.

Outlook and guidance

• 3Q26 revenue expected to grow at mid-teens YoY, led by consumer speaker projects and Auto/AloT products, though soft PC demand may offset growth.

• Gross margin may remain under pressure due to product mix shifts and persistent cost pressures.

• Opex ratio likely to be lower than 3Q25.

• Information Products revenue expected to decline slightly YoY and QoQ; Smart Lifestyle and Auto/AloT segments to drive growth.

• Management expects adoption of new IFRS standards in 2027 and 2028 to have no significant impact.