Taiwan Union Technology (6274) Q2 2024 earnings summary

Executive summary

• Net revenue for 2Q24 reached NT$5,705 million, up 28.7% from 1Q24 and 51.9% year-over-year.

• Net income surged to NT$694 million, a 53.5% increase from 1Q24 and 158.5% higher than 2Q23.

• Revenue for the six months ended June 30, 2024, was NT$10,138.1 million, up 37% year-over-year, with net profit of NT$1,145.5 million, a significant increase from NT$61.9 million in the prior year period.

• EPS rose to NT$2.55 in 2Q24, up 53.6% sequentially and 155.0% year-over-year; for the six months, basic EPS was NT$4.21 and diluted EPS NT$4.09, compared to NT$0.23 in the prior year.

Financial highlights

• Gross margin improved to 23.9% in 2Q24, up 1.1 percentage points from 1Q24 and 5.7 points from 2Q23; for the six months, gross margin was 77%, down from 81% year-over-year.

• Operating margin increased to 15.2% in 2Q24, up 2.4 points from 1Q24 and 8.3 points from 2Q23; for the six months, operating margin improved to 14% from 7% year-over-year.

• Net profit margin reached 12.2% in 2Q24, up 2.0 points from 1Q24 and 5.0 points from 2Q23.

• ROE annualized at 22.7% in 2Q24, up from 16.0% in 1Q24 and 10.1% in 2Q23.

• Total assets as of June 30, 2024, were NT$23,034.2 million, up from NT$17,515.1 million a year earlier.

Segment performance

• HSD-Low Loss (HSD-L) technology accounted for 62% of 2Q24 CCL revenue, up from 58% in 1Q24 and 54% in 2Q23.

• HSD-Non Low Loss (HSD-NL) contributed 24% of 2Q24 CCL revenue.

• High Density Interconnect (HDI) made up 5% and other technologies 9% of 2Q24 CCL revenue.

• Domestic sales and manufacturing contributed NT$4,009.1 million in revenue and NT$196.7 million in segment profit for the six months.

• Overseas sales and manufacturing contributed NT$6,129.0 million in revenue and NT$1,233.9 million in segment profit.