Sercomm (5388) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were NT$13,711 million, down 12.5% year-over-year and 15.3% sequentially from Q1 2024.

• H1 2024 net sales reached NT$29,904 million, a 4.5% decrease year-over-year, with gross profit margin improving to 17% from 14%.

• Net income attributable to owners for H1 2024 was NT$1,219 million, up 18.1% year-over-year, with basic EPS of NT$4.19.

• Cash and cash equivalents rose to NT$10,297 million at June 30, 2024, from NT$7,792 million a year earlier and NT$8,831 million at year-end 2023.

• Total equity increased to NT$14,996 million at June 30, 2024, from NT$9,809 million at June 30, 2023.

Financial highlights

• Q2 2024 gross profit margin improved to 17.7% from 14.6% in Q2 2023.

• Operating profit for H1 2024 was NT$1,534 million, up 12.2% year-over-year.

• Gross profit for H1 2024 was NT$5,229 million, up 18% year-over-year.

• EPS after tax for Q2 2024 was NT$1.84, compared to NT$2.05 in Q2 2023 and NT$2.35 in Q1 2024.

• Total assets as of June 30, 2024 were NT$44,146 million, with equity attributable to owners at NT$15,006 million.

Segment performance

• Broadband CPE accounted for 75% of H1 2024 revenue, up from 66% in 2023, and contributed NT$21,926 million, up 16% year-over-year.

• Enterprise segment contributed 17% and Infrastructure & IoT 8% in H1 2024; ENT revenue was NT$5,019 million, down 44% year-over-year, and IoT Solutions revenue was NT$2,391 million, down 19% year-over-year.