Amlogic (Shanghai) Co (688099) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 1.62 billion, up 7.73% year-over-year; YTD revenue was RMB 4.64 billion, up 20.28% year-over-year.

• Net profit attributable to shareholders in Q3 was RMB 232 million, up 79.52% year-over-year; YTD net profit was RMB 594 million, up 89.26%.

• Q3 revenue and net profit both set historical highs for the period, driven by market recovery and improved operational efficiency.

• Multi-product strategy yielded strong results, with T series sales up over 50% year-over-year and W series Wi-Fi 6 chips breaking into major domestic operator markets.

Financial highlights

• Gross margin in Q3 was 38.22%, up 2.24 percentage points year-over-year and 2.85 points sequentially.

• R&D expenses for the first three quarters were RMB 1.02 billion, up RMB 68 million year-over-year; R&D accounted for 21.28% of revenue.

• Operating cash flow for the first three quarters was RMB 746 million, up 46.55% year-over-year.

• Basic EPS for Q3 was RMB 0.55, up 77.42% year-over-year; YTD basic EPS was RMB 1.42, up 86.84%.

• Total assets at quarter-end were RMB 6.97 billion, up 9.63% from year-end 2023.

Outlook and guidance

• Expects full-year 2024 revenue to grow year-over-year, though specific results remain uncertain due to market factors.

• Multi-product strategy and new technology applications expected to drive further growth as global consumer electronics recover.