Shuang-Bang Industrial (6506) Q1 2024 earnings summary

Executive summary

• Revenue for Q1 2024 was NT$487.88 million, up 3% year-over-year, with net income of NT$33.22 million, more than doubling from NT$15.38 million in Q1 2023.

• Gross margin improved to 17.5% from 12.4% year-over-year, driven by higher sales and reversal of inventory obsolescence.

• Operating income rose sharply to NT$37.24 million from NT$8.20 million in Q1 2023.

• Earnings per share increased to NT$0.40 from NT$0.19 year-over-year.

Financial highlights

• Cash and cash equivalents at March 31, 2024 were NT$137.12 million, stable year-over-year.

• Total assets reached NT$2.63 billion, with equity at NT$1.26 billion and liabilities at NT$1.37 billion (liabilities/assets ratio: 52.2%).

• Operating cash flow was NT$12.53 million, while investing activities used NT$18.91 million, mainly for equipment and prepayments.

• Net cash from financing activities was NT$22.24 million, reflecting increased short-term and long-term borrowings.

Outlook and guidance

• The business is seasonal, with stronger sales and profits typically in the first half of the year.

• Management continues to monitor global demand and adjust capital structure to ensure liquidity and support growth.