Taiwan Union Technology (6274) Q4 2024 earnings summary

Executive summary

• Net revenue for 4Q24 reached NT$6,310 million, a 42.9% increase year-over-year but a 4.7% decrease sequentially from 3Q24.

• Revenue grew 28% year-over-year to NT$9.68 billion, driven by strong sales of copper clad laminate and prepreg products.

• Net income was NT$705 million, down 6.5% sequentially but up significantly from NT$392 million in 4Q23.

• Net profit surged 216% year-over-year to NT$2.60 billion, with EPS rising to NT$9.56 from NT$3.05.

• Gross margin improved to 23.2%, up 1.4 percentage points year-over-year and 0.5 points sequentially.

Financial highlights

• Operating margin rose to 14.8%, up 3.0 percentage points year-over-year and 0.1 points sequentially.

• EPS for 4Q24 was NT$2.58, a 77.9% increase year-over-year but a 6.9% decrease from 3Q24.

• ROE was 19.7%, up 6.1 percentage points year-over-year but down 3.3 points sequentially.

• Cash and marketable securities stood at NT$7,037 million at quarter-end, up from NT$5,657 million a year ago.

• Free cash flow was NT$306 million, rebounding from negative NT$497 million in 3Q24.

Segment performance

• HSD-Low Loss (HSD-L) technology accounted for 66% of CCL revenue in 4Q24, up from 54% in 4Q23.

• HSD-Non Low Loss (HSD-NL) contributed 20%, while HDI and Others made up 6% and 8% respectively.

• Copper clad laminate sales: NT$4.99 billion; PP: NT$3.67 billion; mass laminate: NT$779 million.

• Sales to related parties (mainland China subsidiaries) accounted for 15% of total revenue.