Merry Electronics (2439) Q1 2024 earnings summary

Executive summary

• Operating revenue for Q1 2024 was NT$8,353 million, up 17% year-over-year, with net profit of NT$411 million, a significant increase from NT$53 million in Q1 2023.

• Gross margin remained stable at 12%, while operating profit margin improved to 2% from 1% year-over-year.

• Total comprehensive income for the period was NT$647 million, with basic EPS of NT$1.70 and diluted EPS of NT$1.50.

Financial highlights

• Cash and cash equivalents rose to NT$9,013 million as of March 31, 2024, from NT$6,207 million a year earlier.

• Total assets increased to NT$34,103 million, up from NT$29,369 million year-over-year.

• Operating cash flow for Q1 2024 was NT$2,906 million, up from NT$996 million in Q1 2023.

• Dividend payable as of March 31, 2024, was NT$1,031 million.

Outlook and guidance

• The company is preparing for a cash capital increase and new convertible bond issuances totaling up to NT$3 billion, approved after the reporting period.

• Management is assessing the impact of upcoming global minimum tax (Pillar Two) rules, with exposure in Hong Kong and Thailand subsidiaries.