Primax Electronics (4915) Q2 2025 earnings summary

Executive summary

• Q2/2Q25 revenue was TWD 14.6 billion, down 5.1% YoY, impacted by NTD appreciation, but gross margin reached a record 17.5% due to favorable product mix.

• EPS for Q2/2Q25 was TWD 1.6, nearly flat QoQ and YoY, supported by effective FX hedging despite currency headwinds.

• R&D expense rose 6.4% YoY to TWD 865 million, representing 5.9% of revenue, reflecting ongoing technology innovation and strategic focus on Auto and AIoT.

• Operating revenue for the six months ended June 30, 2025 was TWD 29.36 billion, up 1.2% YoY; net profit attributable to owners was TWD 1.47 billion, up 12.6% YoY.

• Comprehensive income for the period was negative TWD 2.06 billion, mainly due to significant foreign currency translation losses.

Financial highlights

• Gross margin reached 17.5% (record high), up 0.3 ppt QoQ and 0.2 ppt YoY; gross profit for 2Q25 was TWD 2.55 billion, down 4.3% YoY.

• Operating income for 2Q25 was TWD 705 million, down 11.1% YoY; net income for 2Q25 was TWD 733 million, down 7.5% YoY.

• 1H25 EPS reached TWD 3.21, up 11.5% YoY; basic EPS for the six months was TWD 3.21, up from TWD 2.88 YoY.

• Net cash at end-Q2 ranged from TWD 9.7–10 billion after dividend payout; ending cash balance at June 30, 2025 was TWD 12.6 billion.

• Free operating cash flow for 2Q25 was TWD 1.38 billion; net cash from operating activities for the six months was TWD 1.38 billion.

Outlook and guidance

• Full-year revenue in NTD expected to be slightly better than last year if current FX rates persist; 3Q25 USD revenue projected to grow mid-to-high single digits YoY.

• Gross margin expected to remain stable or improve, barring further major currency appreciation.

• Auto and AIoT segments forecasted for high double-digit growth in H2, with robust new project ramps.

• Dividend payout ratio for next year targeted at 80%; 2024 payout ratio at 75% with NT$4.20 per share.

• The Group adopted new IFRS amendments in 2025 with no significant impact and is evaluating future standards.