TXC (3042) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NT$10.85bn, down 17.61% YoY; net profit fell 38.92% to NT$1.71bn as end-market demand weakened.

• Revenue and net profit reached 90.72% and 92.27% of internal budget targets, respectively.

• Strategic focus remains on AI, 5G+, automotive electronics, wafer-level technologies and smart manufacturing, with growth expected from advanced products and capacity expansion.

Financial highlights

• Gross profit declined 23.27% to NT$3.86bn; operating income fell 33.52% to NT$1.87bn; pretax profit decreased 38.84% to NT$2.06bn.

• Net income was NT$1.71bn versus NT$2.81bn; diluted EPS was NT$5.33 versus NT$8.68.

• Non-operating income and expenses totaled NT$194.2m versus NT$562.1m; net foreign exchange gains were NT$68.6m versus NT$436.2m.

• Operating cash flow was NT$3.05bn; investing cash outflow was NT$729.4m and financing cash outflow was NT$2.29bn; year-end cash was NT$4.20bn.

Outlook and guidance

• 2024 guidance is cautious; expected total combined sales volume exceeds 4bn units, with global quartz market share estimated at ~12%.

• 2024 plans target AI, 5G+, HPC and automotive markets; new products and production-line expansion are expected to contribute revenue as customer qualifications progress.

• Wafer-factory mass production and capacity expansion are planned for 2024; the third production site is expected to enter mass production in H2 2024.

• Renewable energy share is targeted to rise from 1.7% in 2023 to 5% in 2024 and at least 30% by 2030.