Zhen Ding Technology Holding (4958) Q4 2024 earnings summary

Executive summary

• 2024 revenue rose 13.4% year-over-year to a record NT$171.7bn, maintaining global PCB market leadership for the 8th consecutive year.

• Audited consolidated financials for 2024 and 2023 were prepared under IFRS, with an unqualified audit opinion.

• All four major application segments achieved historical highs, with mobile communications, servers/automotive/optical, and IC substrates showing strong growth.

• Product portfolio became more diversified, with servers/automotive/optical and IC substrates' revenue share rising to 9.9% from 7.4%.

• Global PCB market share increased to 7.3% from 7.0% year-over-year.

Financial highlights

• 2024 revenue: NT$171,664m (+13.4% YoY); gross profit: NT$32,461m (+18.2% YoY); gross margin: 18.9% (+0.8ppts YoY).

• Net income: NT$13,096m (+38.9% YoY); net margin: 7.6% (+1.4ppts YoY); EPS: NT$9.67 (+47.7% YoY).

• Cash and cash equivalents: NT$79,830m (+21.0% YoY); ROE: 9.1% (+2.0ppts YoY).

• 4Q24 revenue: NT$56,133m (+3.2% YoY); net income: NT$6,242m (+23.1% YoY); net margin: 11.1% (+1.8ppts YoY).

• Operating cash flow: NT$32,597m in 2024, up from NT$30,384m in 2023.

Outlook and guidance

• 2025 revenue expected to reach another record high, with AI-related products projected to account for over 70% of total revenue.

• Growth anticipated across all four major application segments, driven by rapid adoption of edge AI devices and high-end server, optical, and IC substrate products.

• Thailand fab to begin trial production in May 2025, with contributions from new fabs expected in 2026-2027.

• Board proposed a cash dividend of NT$4.80 per share for 2024 earnings.

• No significant losses expected from a fire at a subsidiary after insurance claims.