Vanguard International Semiconductor (5347) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 was NTD 11,804 million, up 11.8% year-over-year and 6.7% sequentially.

• Net income attributable to shareholders was NTD 2,133 million, increasing 31.4% year-over-year and 18.6% sequentially.

• Diluted EPS was NTD 1.29, up from NTD 1.09 in Q2 2024 and NTD 0.98 in Q3 2023.

• Total wafers shipped rose 10% quarter-over-quarter to 613K pcs.

• Nine-month 2024 net revenue totaled NTD 32,502 million, up 13.6% year-over-year; net income was NTD 5,203 million, up 4.4%.

Financial highlights

• Gross profit margin improved to 29.0% in Q3 2024 from 26.0% in Q2 2024 and 26.5% in Q3 2023.

• Operating income was NTD 2,229 million, up 29.3% sequentially and 33.9% year-over-year.

• Cash and financial instruments stood at NTD 43,901 million at quarter-end.

• Cash and cash equivalents at Sep. 30, 2024 were NTD 37,218 million, up from NTD 25,937 million a year earlier.

• Operating cash flow for the nine months ended Sep. 30, 2024 was NTD 11,810 million, up from NTD 4,610 million in the prior year.

Outlook and guidance

• 4Q24 wafer shipment expected to decrease by 10%–12% quarter-over-quarter.

• Blended ASP projected to rise by 3%–5% quarter-over-quarter.

• Gross profit margin guidance for 4Q24 is 27%–29%.

• LTA income (non-wafer revenue) to contribute an extra 3%–4% of revenue in 4Q24.