WNC (6285) Q3 2024 earnings summary

Executive summary

• Net operating revenue for the nine months ended September 30, 2024, was NT$82.26 billion, up 1.4% year-over-year, with net income at NT$2.43 billion, down 17% from the prior year.

• Gross margin for the period was 12%, consistent with the prior year, while operating margin declined slightly.

• Earnings per share for the nine months were NT$5.12 basic and NT$5.03 diluted, compared to NT$7.07 and NT$6.72, respectively, in the prior year.

Financial highlights

• Operating income for the nine months was NT$3.26 billion, down from NT$3.0 billion year-over-year.

• Cash and cash equivalents increased to NT$11.01 billion as of September 30, 2024, from NT$8.06 billion at year-end 2023.

• Total assets stood at NT$67.58 billion, with total equity at NT$30.75 billion as of September 30, 2024.

• Short-term loans increased to NT$10.56 billion, and long-term loans (including current portion) were NT$2.26 billion.

• Convertible bonds were fully converted to equity by March 2024.

Outlook and guidance

• Management expects continued growth in the North American market following the acquisition of NMX in Mexico, enhancing supply chain agility.

• Adoption of new IFRS standards is not expected to have a significant impact on future financials.