Merry Electronics (2439) Q4 2024 earnings summary

Executive summary

• Revenue grew 19.5% year-over-year to NT$43.86 billion, with net income up 72% to NT$2.44 billion for 2024 compared to 2023.

• Gross margin remained stable at 13%, while operating profit margin improved to 4% from 3% year-over-year.

• Earnings per share increased to NT$9.26 (basic) and NT$8.37 (diluted), up from NT$6.16 and NT$5.49, respectively.

• Major customers accounted for 74% of total revenue, with the largest contributing 38%.

Financial highlights

• Cash and cash equivalents rose to NT$8.59 billion from NT$5.53 billion year-over-year.

• Total assets increased to NT$39.12 billion, and equity attributable to owners rose to NT$18.02 billion.

• Debt ratio improved to 51% from 59% year-over-year.

• Operating cash flow was NT$2.03 billion, with investing cash flow at NT$100 million and financing cash flow at NT$3.06 billion.

• Inventory write-downs reversed due to partial sales of previously impaired stock.

Outlook and guidance

• Management expects continued growth, supported by new product launches and expansion in Vietnam.

• Pillar Two global minimum tax rules will impact subsidiaries in Hong Kong and Thailand starting 2025, but the quantitative effect is still being assessed.