E Ink (8069) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was TWD 13.3 billion, down 8% year-over-year, with net income of TWD 3,371.6 million, reflecting inventory correction and higher costs.

• Record Q2 revenue achieved, but operating profit and gross margin declined due to product mix, lower ESL/material sales, and increased R&D and talent expenses.

• Significant progress in color ePaper technology, with multiple industry awards and expansion into new applications and markets.

• Strong ESG commitment, with achievements in renewable energy, net zero carbon emissions, and multiple sustainability awards.

• Asset base and net asset value per share have doubled over four years, reflecting operational and financial growth.

Financial highlights

• Q2 2024 revenue was TWD 7,656 million, up 6% sequentially but down 3% year-over-year; H1 operating profit was TWD 1,578 million, down 22% year-over-year.

• Net income for H1 was TWD 3,340.7 million, with EPS of TWD 2.92.

• Total assets reached TWD 85.6 billion, up TWD 16.5 billion year-over-year.

• Net cash and financial assets increased to TWD 55.7 billion.

• Gross profit margin declined to 47% from 51% year-over-year.

Outlook and guidance

• Growth momentum expected to normalize from Q3, with sequential revenue improvement in Q3 and Q4.

• No year-over-year growth expected for ESL in 2024 due to inventory correction, but CE is expected to grow year-over-year, driven by color technology.

• Long-term gross profit margin target remains around 50%, though full-year 2024 may fall below this level.

• 2025 capital expenditure guidance is TWD 5-6 billion, similar to 2024.

• Continued investment in capacity expansion, with new production facilities and R&D buildings planned or under construction.