Taiwan Union Technology (6274) Q1 2024 earnings summary

Executive summary

• Net revenue for Q1 2024 was NT$4,433 million, up 21.4% year-over-year and 0.4% sequentially.

• Net income reached NT$452 million, a turnaround from a loss in Q1 2023 and a 15.2% increase from 4Q23.

• Gross margin improved to 22.8%, up 1.0 ppt sequentially and 4.3 ppts year-over-year.

• EPS was NT$1.66, up 14.5% sequentially and a significant improvement from -NT$0.77 in Q1 2023.

• NT$1,090 million in cash dividends were distributed, and investments in property, plant, and equipment continued.

Financial highlights

• Operating margin rose to 12.7%, up 1.0 ppt from 4Q23 and 6.4 ppts from 1Q23.

• Operating profit was NT$565 million, up from NT$233 million year-over-year.

• ROE reached 16.0%, up 2.5 ppts from 4Q23 and 23.8 ppts from 1Q23.

• Net profit margin increased to 10.2%, up 1.3 ppts sequentially.

• Cash and cash equivalents at quarter-end were NT$4,677 million, down from NT$6,549 million a year ago.

Segment performance

• HSD-Low Loss (HSD-L) products accounted for 58% of CCL revenue in 1Q24, up from 55% in 1Q23.

• HSD-Non Low Loss (HSD-NL) contributed 26% of CCL revenue in 1Q24.

• High Density Interconnect (HDI) and Others each contributed 8% of CCL revenue.

• Domestic sales and manufacturing contributed NT$1,720 million in revenue and NT$25 million in segment profit.

• Overseas sales and manufacturing contributed NT$2,713 million in revenue and NT$540 million in segment profit.