ASUS (2357) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached up to NT$147.7 billion, up 21% year-over-year, with net income after tax as high as NT$13.7 billion and EPS up to NT$17.22, driven by strong PC, gaming, and server shipments.

• Operating profit rose to NT$12.6 billion, up 147% year-over-year, aided by a one-time bad debt reversal of up to NT$5.351 billion.

• Cash and equivalents increased up to NT$111.5 billion, up 48% year-over-year, strengthening the balance sheet.

• Strategic inventory build-up and diversified market presence enhanced supply chain resilience.

Financial highlights

• Gross margin reached up to 16%, with operating margin up to 8.5% and pro forma margin (excluding bad debt) stable at 4.5%.

• Non-operating income totaled up to NT$3.762 billion, driven by investment and FX gains.

• Inventory at quarter-end was up to NT$155.5 billion, up 13% year-over-year.

• Cash conversion cycle improved to 116 days.

Outlook and guidance

• Q2 2025 guidance: PC revenue expected to grow 25–30% quarter-over-quarter; component and server revenue to rise up to 16% QoQ.

• Anticipates continued strong momentum in gaming and AI server segments; expects server revenue share to rise in Q2.

• Cautious on PC demand in H2 2025 due to tariffs and geopolitical tensions; expects industry growth to slow to low single digits or flat.

• Board proposed a cash dividend of NT$34 per share for 2024 earnings, pending shareholder approval.