Taiwan Union Technology (6274) Q3 2024 earnings summary

Executive summary

• Net revenue reached NT$6,622 million in 3Q24, up 16.1% sequentially and 58.5% year-over-year.

• Net income rose to NT$754 million in 3Q24, an 8.7% increase from 2Q24 and more than double 3Q23.

• EPS improved to NT$2.77 in 3Q24, up 8.6% from the previous quarter and 104.2% year-over-year.

• Revenue for the nine months ended September 30, 2024, was NT$16.76 billion, up 45% year-over-year, with net profit reaching NT$1.90 billion.

• Gross margin improved to 23% from 19% year-over-year, reflecting higher sales and better cost control.

Financial highlights

• Gross margin was 22.7% in 3Q24, down 1.2 points sequentially but up 2.6 points year-over-year.

• Operating margin stood at 14.6% in 3Q24, a 0.5 point decrease from 2Q24 but a 4.8 point increase from 3Q23.

• Net profit margin was 11.4% in 3Q24, down 0.8 points sequentially but up 2.5 points year-over-year.

• Operating profit for the nine months was NT$2.40 billion, up from NT$905 million year-over-year.

• Total assets as of September 30, 2024, were NT$24.86 billion, up from NT$19.12 billion a year earlier.

Segment performance

• HSD-Low Loss (HSD-L) technology contributed 63% of CCL revenue in 3Q24, up from 62% in 2Q24 and 54% in 3Q23.

• HSD-Non Low Loss (HSD-NL) accounted for 22% of CCL revenue, while HDI and Others made up 5% and 10%, respectively.

• Domestic sales and manufacturing contributed NT$6.67 billion in revenue and NT$502 million in segment profit for the nine months.

• Overseas sales and manufacturing generated NT$10.09 billion in revenue and NT$1.90 billion in segment profit.