Primax Electronics (4915) Q4 2024 earnings summary

Executive summary

• FY2024 revenue was NT$58,243,661 thousand, down from NT$60,488,402 thousand; net income rose to NT$2,727,124 thousand from NT$2,633,489 thousand.

• Profit attributable to owners was NT$2,556,850 thousand versus NT$2,485,289 thousand; basic EPS increased to NT$5.61 from NT$5.50.

• 4Q24 revenue fell 5.7% YoY to NT$13.2bn amid soft PC and consumer demand and AIOT inventory adjustments; quarterly gross margin reached a record 17.4%.

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

Financial highlights

• FY2024 gross profit increased to NT$9,880,693 thousand from NT$9,581,300 thousand; operating income was NT$2,731,092 thousand versus NT$2,742,983 thousand.

• FY2024 gross margin improved to 17.0% from 15.8%; reported operating margin was 4.7%.

• 4Q24 gross profit was NT$2,304mn, up 1.9% YoY; operating income was NT$518mn, down 3.2% YoY, and operating margin was 3.9%.

• Year-end cash and cash equivalents were NT$13,885,985 thousand, versus NT$10,905mn in 2023.

• FY2024 operating cash flow was NT$5,621,528 thousand; investing and financing cash outflows were NT$1,269,618 thousand and NT$2,079,897 thousand.

Outlook and guidance

• 1Q25 revenue was expected to grow mid-single digits YoY, driven by stronger PC and recovering AIOT orders.

• Gross and operating margins were projected to improve YoY, with gross margin expected to remain at least at 2H24 levels.

• Auto/AIOT and professional audio segments were forecast to grow at high double-digit rates YoY.