Giant Manufacturing (9921) Q3 2024 earnings summary

Executive summary

• 2023 sales revenue declined to NT$76,954M from NT$92,043M in 2022, reflecting a challenging market environment.

• Net income after tax dropped to NT$3,401M in 2023 from NT$5,843M in 2022; nine-month 2024 net income was NT$2.17B, down 30% year-over-year.

• EPS decreased to NT$8.68 in 2023 from NT$15.51 in 2022; nine-month 2024 EPS was NT$5.54, down from NT$7.96.

• Q3 2024 revenue was NT$20.46B, up 5% from Q3 2023, but nine-month 2024 revenue fell 7% year-over-year.

• Liv business accounted for 9% of group sales in 2023, with a single-digit increase; target is 10%.

Financial highlights

• Gross margin was 22.1% in 2023, down from 22.6% in 2022; nine-month 2024 gross margin was 20%.

• Operating income fell to NT$4,709M in 2023 from NT$7,914M in 2022; nine-month 2024 operating income was NT$2.90B, down 34% year-over-year.

• Cash dividend per share was NT$5 in 2023, compared to NT$7.8 in 2022; NT$1.96B paid in 2024.

• Cash and cash equivalents at September 30, 2024, were NT$15.81B, up from NT$14.79B at year-end 2023.

• Total assets at September 30, 2024, were NT$81.49B, down from NT$89.10B a year ago.

Outlook and guidance

• High uncertainty remains regarding the timing of market recovery.

• Management expects no material impact from new or revised IFRS standards effective in 2025 and 2026.

• Ongoing evaluation of Pillar Two global minimum tax law; no significant tax impact as of Q3 2024.

• Europe faces disappointing destocking progress, requiring heavy discounts and impacting gross margin.

• US stock levels are improving, but dealers remain conservative.