Primax Electronics (4915) Q4 2024 earnings summary

Executive summary

• 2024 revenue saw a slight year-over-year decline due to strategic transition, but net profit grew mildly year-over-year.

• 4Q24 revenue declined 5.7% YoY to NT$13.2bn, impacted by soft PC/consumer demand and AIOT inventory adjustments.

• 4Q24 gross margin hit a quarterly record high of 17.4%, with operating margin at 3.9%.

• EPS for 2024 reached NT$5.61, the second highest in company history; 4Q24 EPS was NT$1.03, down 5.5% YoY.

• ROE for 2024 was 14%, with a five-year average of 14.5%.

Financial highlights

• 2024 revenue: NT$58,244mn, down 3.7% YoY; net income: NT$2,727mn, up 3.6% YoY.

• 2024 gross margin improved to 17.0% (from 15.8% in 2023); operating margin rose to 4.7%.

• 4Q24 gross profit: NT$2,304mn, up 1.9% YoY; operating income: NT$518mn, down 3.2% YoY.

• Cash balance at year-end 2024: NT$13,886mn, up from NT$10,905mn in 2023.

Outlook and guidance

• 1Q25 revenue expected to increase mid-single digit YoY, driven by strong PC and reviving AIOT orders.

• Gross and operating margins projected to improve YoY, with gross margin likely to maintain at least 2H24 levels.

• Auto/AIOT and professional audio segments forecasted to see high double-digit YoY growth.