King Yuan Electronics Company (2449) Q2 2024 earnings summary

Executive summary

• Q2'24 net revenue reached NT$6,543.2 million, up 9.5% sequentially and 11.5% year-over-year, excluding China subsidiary revenue.

• Consolidated net sales for H1'24 were NT$12,520,379 thousand, up from NT$11,410,316 thousand year-over-year, with net income from continuing operations at NT$2,176,233 thousand and total net income at NT$3,387,678 thousand, reflecting both continuing and discontinued operations.

• Profit attributable to the company rose 39.0% quarter-over-quarter and 23.3% year-over-year to NT$1,902.8 million.

• Diluted EPS was NT$1.55 in Q2'24, up from NT$1.11 in Q1'24 and NT$1.26 in Q2'23.

• The company classified King Long Technology (Suzhou) Ltd. as a disposal group held for sale, with a planned sale of its 92.16% stake, impacting both the balance sheet and income statement presentation.

Financial highlights

• Q2'24 EBITDA was NT$4,561.5 million with an EBITDA margin of 50.5%.

• H1'24 net revenue totaled NT$12,520.4 million, up 9.7% from H1'23.

• H1'24 profit attributable to the company increased 19.7% year-over-year to NT$3,271.2 million.

• Gross profit margin for the six months was 34%, with operating income at NT$2,900,367 thousand, up from NT$2,428,792 thousand year-over-year.

• Net income attributable to owners of the parent for the six months was NT$3,271,243 thousand, with basic EPS of NT$2.68 and diluted EPS of NT$2.66.

Segment performance

• Q2'24 revenue by process: Final test 43.4%, wafer probe 37.7%, assembly 8.5%, burn-in 4.9%, others 5.5%.

• Q2'24 revenue by application: Consumer 37.6%, communication 24.5%, data processing 19.0%, automotive 12.2%, industrial 5.8%, others 1.0%.

• The company operates as a single segment, with the main revenue stream from testing and assembly services.