Winbond Electronics (2344) H2 2023 earnings summary

Executive summary

• FY2023 net sales were NT$75,006M, down NT$19,524M YoY; gross margin fell to 30% from 46%, and operating income shifted to a NT$1,630M loss from NT$16,535M income.

• 2H23 revenue rose to NT$38,679M from NT$36,327M in 1H23, with gross margin steady at 30%; operating loss narrowed to NT$219M from NT$1,411M.

Financial highlights

• FY2023 gross profit was NT$22,396M versus NT$43,051M in 2022; EBITDA was NT$10,226M versus NT$26,084M.

• FY2023 net income was NT$34M versus NT$14,987M in 2022; EPS was NT$(0.29) versus NT$3.25.

• 2H23 revenue was NT$38,679M, up NT$2,352M HoH; gross profit increased NT$889M to NT$11,642M.

Outlook and guidance

• Code storage Flash end demand is expected to grow ~5%; SLC NAND supply-demand balance is expected by 2H24, with potential tightness in 2025; NOR Flash supply outlook is unchanged.

• Specialty DRAM supply-demand balance is expected by 2H24; premium-market prices rebounded after inventory adjustments and supply constraints, while specialty prices are gradually picking up.

• 45nm NOR Flash and 20nm DRAM are beginning to contribute revenue; KH Fab capacity of 14K wafers/month is gearing up for production in early 2024.