UBoT (8529) H1 2024 earnings summary

Executive summary

• Ranked third globally by 2023 sales in back-end semiconductor transport media, with 8.4% market share and more than 1,500 product specifications.

• H1 revenue fell 16.4% YoY to HK$79.6m amid a moderate industry recovery; Q2 revenue rose QoQ and 40 additional customised-product orders supported signs of stabilisation.

• Reported net loss was HK$9.461m, including HK$8.363m in listing expenses; listing proceeds strengthened liquidity.

Financial highlights

• H1 revenue was HK$79.6m, down 16.4% YoY; cost of sales decreased 10.2% to HK$51.7m.

• Gross profit fell 25.8% to HK$27.9m; gross margin declined to 35.1% from 39.5%, as fixed manufacturing overheads weighed on lower production.

• Reported net loss attributable to owners was HK$9.461m versus net profit of HK$3.668m; adjusted profit before tax excluding HK$8.363m in listing expenses was HK$535k, versus HK$6.8m.

• Administrative expenses rose to HK$13.9m from HK$12.5m, mainly due to factory-renovation consultancy fees; selling and distribution expenses declined to HK$10.0m from HK$10.3m.

• Basic and diluted loss per share were HK2.4 cents, versus earnings per share of HK1.0 cent in H1 2023.

Outlook and guidance

• Management viewed the semiconductor cycle as having reached its bottom, with AI-related demand and stronger Chinese demand for high-end products supporting a new growth phase.

• Automation, facility modernisation and production-capability upgrades are planned to raise capacity, productivity and efficiency; no numeric financial guidance was stated.

• Expansion plans include carrier-tape manufacturing in the Philippines, sales points in Shenzhen and Chengdu, and additional technical-sales support in Malaysia and the Philippines.

• R&D and product customisation will be intensified to meet customer requirements; 40 additional customised-product orders were received in H1.