Vanguard International Semiconductor (5347) Q2 2024 earnings summary

Executive summary

• Net revenue for 2Q24 reached NT$11,065 million, up 15% sequentially and 12% year-over-year.

• Net income was NT$1,798 million, a 41% increase from 1Q24 but a 10% decrease year-over-year.

• Diluted EPS was NT$1.09, up from NT$0.77 in 1Q24 but down from NT$1.21 in 2Q23.

• Wafer shipments increased 19% QoQ, while blended ASP decreased 4% QoQ; gross margin improved by 2 percentage points to 26.0%.

• Results aligned with prior guidance, reflecting demand recovery after first quarter seasonality.

Financial highlights

• Gross margin improved to 26.0% in 2Q24 from 24.0% in 1Q24, but lower than 30.0% in 2Q23.

• Operating income reached NT$1,724 million (15.6% margin), up 40% QoQ but down 5% YoY.

• Cash and financial instruments at quarter-end totaled NT$49,464 million; cash balance was NT$41,155 million.

• Net cash inflow for the quarter was NT$2,891 million.

• Total wafers shipped grew 19% sequentially to 558K pcs.

Outlook and guidance

• 2Q24 wafer shipments increased 19% QoQ, exceeding guidance of 17–19%.

• Blended ASP decreased 4% QoQ, in line with guidance.

• Gross profit margin at 26.0% was within the guided range of 25–27%.

• 3Q24 wafer shipments expected to rise 9–11% QoQ; blended ASP to decrease 0–2% QoQ.

• Gross profit margin forecasted between 28% and 30% for 3Q24.