Powertech Technology (6239) Q1 2025 earnings summary

Executive summary

• 1Q25 revenue was NT$15.5B, down 9.4% sequentially and 15.5% year-over-year; gross margin was 17.1% and net income NT$1.58B, a 25% YoY decrease; EPS was NT$1.58, down 31.9% YoY.

• DRAM and NAND segments saw continued demand softness, while logic and automotive segments showed resilience.

• Cash and cash equivalents as of Mar 31, 2025 were NT$22.57B.

Financial highlights

• Gross profit for 1Q25 was NT$2,641M, down from NT$3,135M in 4Q24 and NT$3,207M in 1Q24.

• Operating income was NT$1,547M, a 22.4% decrease YoY; operating margin dropped to 10.0% from 11.7% in 4Q24.

• Net income attributable to shareholders was NT$1.18B, down from NT$1.74B YoY.

• Net cash from operating activities was NT$4.63B, down from NT$6.03B YoY.

• Total assets stood at NT$108.0B, with equity at NT$72.76B.

Outlook and guidance

• 2Q25 is expected to see sequential growth as inventory adjustments near completion and AI-related product demand rises.

• NAND and SSD orders are increasing in 2Q25, with further demand growth anticipated in 3Q25 from device upgrades.

• The company is assessing the impact of new IFRS standards effective from 2026.

• No specific forward-looking revenue or profit guidance was provided.

• Company expects to move past 1Q25 trough and continue growth in 2Q25.