Zhen Ding Technology Holding (4958) Q3 2024 earnings summary

Executive summary

• Achieved record-high 3Q24 revenue, up 56% sequentially and 21% year-over-year, with all major product applications showing growth.

• Revenue for the nine months ended September 30, 2024, was NT$115.53 billion, up 19% year-over-year, with net profit attributable to owners at NT$4.82 billion, a 79% increase from the prior year period.

• Mobile Communication, IC Substrate, and Automotive/Server/Base Station segments all set single-quarter revenue records.

• 4Q24 is expected to be the annual peak, with high utilization and double-digit revenue growth targeted for the year.

• The company issued US$400 million in 0% coupon convertible bonds in January 2024, with a portion converted to equity.

Financial highlights

• 1-3Q24 revenue reached NT$115,531 million, up 19.1% year-over-year.

• Operating revenue for Q3 2024 was NT$50.61 billion, up 21% year-over-year; gross profit for the quarter was NT$11.41 billion.

• Gross profit rose 33% to NT$20,990 million; gross margin improved by 1.9 percentage points to 18.2%.

• Net income increased 57.1% to NT$6,855 million; EPS was NT$5.08, up from NT$2.84.

• Cash and cash equivalents stood at NT$64,714 million, up 7.9% year-over-year.

Outlook and guidance

• 4Q24 performance expected to reach the year's peak, driven by new product launches and high utilization.

• Positive outlook for PCB content growth in next-generation AI smartphones and servers.

• Management expects continued growth, supported by robust demand for PCB products and ongoing capital investments.

• Thailand fab on track for trial production in 1H25 and small-scale mass production in 2H25.