Xintec (3374) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 reached NT$2,166M, up 31.9% QoQ and 15.1% YoY, with net income at NT$562M, a 73.1% QoQ and 9.3% YoY increase.

• Gross margin improved to 40% from 38% a year ago, and operating margin rose to 33% from 31%.

• EPS for Q3 2024 was NT$2.07, compared to NT$1.20 in Q2 2024 and NT$1.89 in Q3 2023.

• Nine-month revenue totaled NT$5,252M, up 14.1% YoY; net income for the period was NT$1,212M, up 28.9% YoY.

Financial highlights

• Operating income for Q3 was NT$713.7M, up 23% YoY; nine-month operating income was NT$1,487.3M, up 31%.

• Gross profit for Q3 2024 was NT$862M, up 62.9% QoQ and 21.6% YoY.

• Free cash flow in Q3 2024 was negative NT$313M, reflecting higher capital expenditure and dividend payout.

• Cash and marketable securities at quarter-end were NT$4,070M.

• Operating cash flow for the nine months was NT$1,121.2M, up from NT$915.2M last year.

Outlook and guidance

• Management continues to invest in capacity expansion and R&D to support long-term growth.

• Forward-looking statements indicate expectations of continued growth but highlight significant risks and uncertainties.