Hoshine Silicon Industry (603260) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥7.10 billion, down 10.68% compared to Q3 2023, but YTD revenue grew 2.44% year-over-year to ¥20.37 billion.

• Net profit attributable to shareholders in Q3 was ¥476 million, up 18.42% year-over-year, but YTD net profit fell 33.42% to ¥1.45 billion.

• Decline in YTD profit mainly due to lower sales prices for industrial silicon and organic silicon products, and inventory write-downs amid industry overcapacity.

Financial highlights

• Q3 basic and diluted EPS were ¥0.40, up 8.11% year-over-year; YTD EPS was ¥1.23, down 34.22%.

• Operating cash flow for the first nine months was ¥1.82 billion, a significant improvement from a negative ¥160 million in the prior year.

• Gross margin and operating profit declined due to falling product prices and increased impairment losses.

Key financial ratios and metrics

• Weighted average ROE for Q3 was 1.46%, up 0.15 percentage points; YTD ROE was 4.44%, down 2.64 percentage points year-over-year.

• Total assets at Q3-end were ¥88.23 billion, up 5.86% from year-end 2023; equity attributable to shareholders was ¥32.63 billion, up 0.69%.