Powertech Technology (6239) Q4 2024 earnings summary

Executive summary

• 4Q24 revenue was NT$17.1B, down 6.6% QoQ and 10.2% YoY, with gross margin at 18.3%.

• Full-year 2024 revenue grew 4.1% YoY to NT$73.3B, gross margin improved to 19.1%, but net income declined 10.6% YoY to NT$8.5B.

• Net income for 4Q24 was NT$1.93B, a 10.5% decrease QoQ and 55.7% decrease YoY, with EPS at NT$2.04.

• Excluding one-time disposal gains, 2024 EPS was NT$8.62, up 33.4% YoY.

• Net sales reached NT$47.31B in 2024, up 12% YoY, with gross profit margin improving to 17%.

Financial highlights

• 4Q24 operating income was NT$1.99B, down 3.5ppts QoQ and 1.9ppts YoY.

• Operating income rose 35% to NT$4.66B in 2024, while non-operating income fell sharply.

• 2024 gross profit rose to NT$13.99B, up 1.2ppts YoY.

• Cash and cash equivalents at year-end 2024: NT$22.2B.

• Capital expenditures totaled NT$5.87B, with net cash from operations at NT$10.8B.

Outlook and guidance

• 1Q25 expected to be the business cycle low, with DRAM and NAND demand soft but recovery anticipated from 2Q25.

• AI applications and advanced packaging (2.5DIC, 3DIC) expected to drive growth in 2025.

• The board proposed a NT$7 per share cash dividend for 2024, pending approval.

• The company expects to incur carbon fees starting in 2025 due to new regulations.