King Yuan Electronics Company (2449) Q3 2024 earnings summary

Executive summary

• Q3'24 net revenue (excluding China subsidiary) rose 7.6% sequentially and 12.9% year-over-year to NT$7,038.7 million.

• Profit attributable to the company increased 30.2% sequentially and 61.0% year-over-year to NT$2,478.0 million.

• Diluted EPS reached NT$2.02, up from NT$1.55 in Q2'24 and NT$1.25 in Q3'23.

• Consolidated net sales for the nine months ended September 30, 2024, were NT$19,559,121 thousand, up from NT$17,645,970 thousand year-over-year.

• The company classified King Long Technology (Suzhou) Ltd. as a disposal group held for sale, with a planned sale approved by the board in April 2024.

Financial highlights

• Gross margin improved to 35.9% in Q3'24, up 0.6 percentage points sequentially and 2.2 points year-over-year.

• Operating profit margin increased to 25.1% in Q3'24, up 0.7 points sequentially and 2.8 points year-over-year.

• EBITDA for Q3'24 was NT$4,718.6 million with an EBITDA margin of 49.1%.

• Basic EPS for the nine months was NT$4.70, up from NT$3.49 year-over-year.

• Cash and cash equivalents as of September 30, 2024, were NT$13,832.8 million, up from NT$13,046.5 million in Q2'24.

Segment performance

• Final test contributed 46.8% of revenue, wafer probe 34.0%, assembly 7.1%, burn-in 6.8%, and others 5.3%.

• By application: consumer 35.0%, communication 23.0%, data processing 21.0%, automotive 12.3%, industrial 7.1%, others 1.6%.

• The main revenue stream is from testing and assembly services, with the company aggregated into a single segment for reporting.

• Discontinued operations (King Long Technology) contributed NT$2,339,302 thousand in net income for the nine months.