Zhen Ding Technology Holding (4958) Q1 2025 earnings summary

Executive summary

• 1Q25 revenue reached NT$40,082 million, up 23.3% year-over-year, setting a new record, with double-digit growth across all major application segments.

• Operating profit increased by 42.2% year-over-year, driven by improved operational efficiency and strict OPEX control.

• Net income was NT$1,025 million, down from NT$1,440 million in 1Q24, while comprehensive income rose to NT$3.47 billion due to currency translation gains and fair value adjustments.

• Global capacity expansion is progressing, with Thailand's new fab entering trial production and further investments in Kaohsiung for advanced packaging.

• The company maintains a leading global PCB market share, ranking #1 for eight consecutive years.

Financial highlights

• 1Q25 revenue: NT$40,082 million (+23.3% YoY); gross profit: NT$5,885 million (+10.3% YoY); operating profit: NT$1,056 million (+42.2% YoY).

• Net income: NT$1,025 million (-28.6% YoY); net margin: 2.6% (-1.8ppts YoY); comprehensive income: NT$3.47 billion.

• EPS: NT$0.66 (vs. NT$1.03 in 1Q24); cash and cash equivalents: NT$85,879 million (+17.7% YoY).

• Cash inflow from operations: NT$11,144 million (+35.0% YoY); total assets: NT$265.74 billion.

• NT$5.64 billion invested in property, plant, and equipment in Q1 2025; issued NT$12.47 billion in convertible bonds.

Outlook and guidance

• Aims for another record-high revenue in 2025, leveraging operational resilience to navigate policy and market volatility.

• Expects continued growth across all four major applications, supported by rising demand for AI devices and high-end server, optical, and IC substrate orders.

• Thailand and Kaohsiung capacity expansions are expected to contribute meaningfully from 2026-2027.

• No significant impact from the implementation of OECD Pillar Two tax rules in Q1 2025.

• The company expects continued growth in PCB demand, with ongoing investments in capacity and technology.