Primax Electronics (4915) Q3 2025 earnings summary

Executive summary

• 3Q25 revenue reached NT$15.9bn, down 0.8% YoY due to FX impacts; gross margin at 17.0%, slightly lower YoY and QoQ.

• Operating margin was 4.9%, flat QoQ but down 0.3ppt YoY; EPS for 3Q25 was NT$1.55, down 8.8% YoY.

• R&D expense increased 3.6% YoY to NT$928mn, representing 5.8% of revenue.

• 1Q-3Q25 EPS totaled NT$4.76, up 3.9% YoY; net profit for the nine months was NT$2,184,910 thousand, a slight increase YoY.

• Operating revenue for the nine months ended September 30, 2025 was NT$45,238,950 thousand, nearly flat YoY.

Financial highlights

• Gross profit for 3Q25 was NT$2.7bn, down 1.2% YoY; operating income at NT$776mn, down 6.8% YoY.

• Net income for 3Q25 was NT$712mn, down 15.0% YoY; net margin at 4.5%, down 0.7ppt YoY.

• Cash and cash equivalents at September 30, 2025 were NT$11.6bn; current ratio at 134%.

• Free operating cash flow for 3Q25 was NT$2.1bn; net cash flows from operating activities for the nine months were NT$2,133,966 thousand, down from NT$4,003,518 thousand YoY.

• Gross margin remained stable at 17% for both the current and prior nine-month periods.

Outlook and guidance

• 4Q25 revenue expected to decrease slightly QoQ but show stronger YoY growth; gross margin to be slightly lower due to product mix.

• Information Products to see stronger YoY growth; Smart Lifestyle and Auto/AloT segments expected to report high double-digit YoY growth.

• Opex ratio likely to be lower than 4Q24.

• The group adopted new IFRS amendments in 2025 with no significant impact and is preparing for IFRS 18 adoption in 2028.