Primax Electronics (4915) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$14.77 billion, up 8.2% year-over-year, driven by PC, IoT, and professional audio demand.

• EPS for Q1 was NT$1.61, up 25.8% year-over-year, marking a record high for the period.

• Gross margin improved to 17.2% in Q1, up 1.3 percentage points year-over-year, and operating margin reached 5%.

• R&D expenses increased 16% year-over-year, representing 5.6% of revenue, reflecting a focus on technology innovation.

• The group completed the acquisition of minority interests in Tymphany Huizhou, increasing its stake to 100%.

Financial highlights

• Net income for Q1 2025 was NT$740 million, up 22.2% year-over-year, with net margin at 5%.

• Operating income for Q1 2025 was NT$1,799 million, up 13% year-over-year.

• Cash and cash equivalents increased to NT$14.22 billion as of March 31, 2025.

• Free operating cash flow for Q1 2025 was NT$210 million.

• R&D expenses were NT$830 million, up 16% year-over-year, accounting for 5.6% of revenue.

Outlook and guidance

• Q2 revenue and net profit expected to range from -5% to +5% quarter-over-quarter, with operating margin expected to remain high.

• Gross margin expected to remain high due to favorable product mix.

• Automotive AIoT segment mix likely to be maintained, supporting long-term growth.