Primax Electronics (4915) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered solid results with revenue of NT$16.01 billion, up 4.2% QoQ and 1.8% YoY, driven by PC/gaming and recovering consumer audio demand.

• Gross margin reached a record 17.1% in Q3, up 0.8 percentage points YoY.

• EPS for Q3 was NT$1.70, up 6.3% QoQ and 4.3% YoY; YTD EPS at NT$4.58.

• Net profit for Q3 was NT$773 million, with net profit for the nine months at NT$2,082 million, up 5% YoY.

• Cash and cash equivalents rose to NT$13.54 billion as of September 30, 2024, up from NT$9.65 billion a year earlier.

Financial highlights

• Operating income for Q3 was NT$16.009 billion; gross profit hit NT$2.737 billion, the highest for the period.

• Operating margin was 5.2%, flat QoQ; net income for Q3 was NT$837 million, up 5.6% QoQ and 4.7% YoY.

• OPEX increased to NT$1.905 billion, mainly due to higher bonus estimates.

• Cash conversion cycle improved to 39 days from 44 days last quarter and 50 days YoY.

• Cash dividends of NT$1,852 million were distributed in 2024.

Outlook and guidance

• Q4 revenue expected to decrease by double digits QoQ due to conservative demand and inventory adjustments.

• PC/gaming to drop mid-single digit YoY; smart lifestyle to see high double-digit YoY decline.

• Auto/AIoT segment to gradually improve, with professional/auto audio business reporting high double-digit YoY growth.

• Dividend payout ratio to be maintained at 73%, with higher payout expected due to increased profit.

• No significant impact expected from new IFRS standards effective in 2025; no seasonality or cyclicality factors expected.