SINBON Electronics (3023) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached NTD 8.43 billion, up 1% quarter-over-quarter and 3% year-over-year, with net income of NTD 949 million and a net margin of 11.3%.

• Year-to-date (9M 2024) revenue totaled NTD 24.77 billion, a 2% decrease from the same period last year.

• Net income for the nine-month period rose to NTD 2,795 million from NTD 2,508 million year-over-year.

• The company operates across five segments: Green Energy, Industrial Application, Medical Health, Automotive & Aviation, and Communication.

• The independent auditor issued a qualified review due to unreviewed financials from certain subsidiaries and associates.

Financial highlights

• Gross margin for Q3 2024 was 24.18%, slightly lower than previous quarters.

• Operating income for Q3 2024 was NTD 886 million, with a quarterly ROE of 6.5%.

• Earnings per share (EPS) for the nine months were NTD 11.65 basic and NTD 11.53 diluted.

• Annual net sales for 2023 were NTD 32.76 billion, up 7% year-over-year, with a net margin of 10.02%.

• Five-year revenue CAGR (2018–2023) was 13.11%.

Outlook and guidance

• Management notes forward-looking statements are subject to significant risks and uncertainties.

• Ongoing focus on expanding in Green Energy, Communication, and Automotive sectors, with new production capacity in Mexico expected to come online in late 2024.

• The company expects to recognize NTD 2,958 million in revenue from unsatisfied performance obligations over the next three years.

• Management continues to focus on growth in core segments and maintaining a strong capital structure.