Techwing (089030) Q3 2024 earnings summary

Executive summary

• Techwing specializes in semiconductor and display test equipment, supplying major global clients like Micron, SK hynix, and Intel, with a diversified product portfolio including memory/non-memory test handlers, burn-in chambers, probe stations, and HBM test equipment.

• The company added solar power generation to its business scope in 2024, aiming for stable, long-term revenue and alignment with government renewable energy policies.

• Techwing maintains a strong R&D focus, with 11.08% of 2024 Q3 sales invested in R&D, and holds 712 patents globally.

Financial highlights

• 2024 Q3 consolidated revenue was ₩137.8 billion, up 3.2% year-over-year; operating income was ₩18.9 billion, up 498% year-over-year; net income was ₩4.5 billion, reversing a loss of ₩11.1 billion in 2023 Q3.

• Gross margin improved to 32.1% from 27.7% year-over-year.

• EPS for Q3 was ₩146, compared to a loss of ₩260 in the prior year.

• Cash and equivalents at Q3-end were ₩22.6 billion, up from ₩13.6 billion at 2023 year-end.

• Dividend of ₩130 per share was paid in 2023.

Outlook and guidance

• The company expects continued growth in semiconductor test equipment demand, driven by AI, IoT, and 5G, with HBM and SSD test equipment as key growth drivers.

• Solar power business is expected to provide stable, long-term revenue, with facility installation at the Dongtan site scheduled for December 2024.