Elite Material (2383) Q2 2024 earnings summary

Executive summary

• Net revenue for 2Q24 reached NT$15.4 billion, up 68% year-over-year, setting a quarterly record.

• Net income for 2Q24 was NT$2.4 billion, up 144% year-over-year; diluted EPS was NT$7.08.

• 1H24 net revenue was NT$28.4 billion, up 71% year-over-year, with net income at NT$4.41 billion, up 198%.

• All key profitability metrics for both 2Q24 and 1H24 reached record highs for the respective periods.

• Gross margin for Q2 2024 was 27%, up from 25% in Q2 2023; operating margin improved to 19%.

Financial highlights

• Cash and equivalents at 2Q24 stood at NT$13.5 billion, up from NT$9.3 billion at year-end 2023.

• Total assets increased to NT$65.2 billion from NT$53.4 billion at year-end 2023.

• Operating cash flow for H1 2024 was NT$3.8 billion, up from NT$2.5 billion in H1 2023.

• Capital expenditures included NT$2.16 billion for property, plant, and equipment in H1 2024.

• Dividend payout for 2023 was NT$10.00 per share, up from NT$8.50 for 2022.

Key financial ratios and metrics

• Gross margin for H1 2024 was 28%, up from 25% in H1 2023.

• Operating margin for H1 2024 was 19%, up from 14% in H1 2023.

• Net margin for 2Q24 was 15.8%, up from 10.9% in 2Q23; 1H24 net margin was 15.6%, up from 8.9% in 1H23.

• Basic EPS for H1 2024: NT$12.83, up from NT$4.45 in H1 2023.

• Current ratio as of June 30, 2024: 1.32x; debt-to-equity ratio: 1.28x.