Unimicron Technology (3037) Q2 2024 earnings summary

Executive summary

• H1 2024 consolidated sales reached NT$54.28 billion, up 4.8% year-over-year, but net profit attributable to owners fell 38% to NT$4.03 billion; EPS (basic) was NT$2.65 for H1.

• Q2 2024 sales were NT$27,877M, up 5.6% sequentially; Q2 net income was NT$1,731M, down 35% sequentially.

• Gross margin for H1 2024 was 15%, down from 20% in H1 2023; Q2 2024 gross margin was 13.2%.

• The company completed full integration of Subtron Technology, targeting synergies in IC substrate technologies.

Financial highlights

• H1 2024 operating income was NT$7.98 billion, down 24% year-over-year; Q2 2024 operating income was NT$897M, down 43% from Q1.

• EBITDA for Q2 2024 was NT$6,577M (24% of sales), down from NT$7,592M (29%) in Q1.

• Cash and cash equivalents at end of Q2 2024 were NT$50.99 billion, down from NT$54.76 billion at Q1 end and NT$63.61 billion a year earlier.

• Net cash from operating activities was NT$8.65 billion in H1 2024, down from NT$24.56 billion in H1 2023.

• Capital expenditures on property, plant, and equipment reached NT$12.57 billion in H1 2024.

Outlook and guidance

• The board approved capital increases of USD 20 million each in UniBest and Unimicron-FPC Technology (Kunshan) to support growth.

• The company continues to invest in capacity expansion and technology development, especially in advanced substrates and compound semiconductors.

• Forward-looking statements highlight risks and uncertainties that may cause actual results to differ materially.