BizLink (3665) Q3 2024 earnings summary

Executive summary

• Achieved record-high EPS of NT$7.07 and net profit of NT$1.26 billion in Q3 2024, driven by strong HPC and semiconductor sales growth and improved operating leverage.

• Gross margin improved to 29.33% due to favorable product mix and operational excellence; operating margin reached a record 13.97%.

• Total sales for Q3 2024 reached NT$14.26 billion, with multi-year growth supported by recent acquisitions and diversification.

• Strategic capital deployment into high-growth areas like HPC and semi cap, with two new factories set for mass production in 2025.

• Ongoing group-wide initiatives in sales, operations, and finance contributed to efficiency and productivity gains.

Financial highlights

• HPC sales rose 39% quarter-on-quarter and 74% year-on-year, now 19.9% of total sales; semiconductor sales up 35% QoQ and 56% YoY, now 11.5% of total sales.

• Net profit for Q3 2024 was NT$1.26 billion, with EPS at NT$7.07; revenue increased 8% YoY and 10% sequentially.

• Gross profit rose 19% YoY and 15% sequentially; operating profit up 41% YoY and 34% sequentially.

• Free cash flow remained positive for the eighth consecutive quarter, totaling over TWD 8.3 billion in two years.

• Market capitalization surpassed $2 billion, nearing $3 billion as share price doubled.

Outlook and guidance

• Strong year-on-year HPC and semi cap sales and profit growth expected to persist into 2025, with new projects and customers contributing.

• Preparing for mass production at two new factories in 2025.

• Industrial and IT datacom segments to remain strong in Q4 2024; automotive weak, electrical appliances entering a seasonally slower period.

• Order visibility is highest in HPC and semi cap, extending well into next year; factory automation and EV remain weak with low visibility.

• Ongoing product innovation and deeper customer engagements anticipated.