WIN Semiconductors (3105) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached TWD 4.35 billion, up 4% year-over-year but down 12% sequentially, reflecting lower capacity utilization and slower customer inventory pull-ins.

• Net profit attributable to owners was TWD 228 million in Q3, with EPS at TWD 0.54; cumulative EPS for Q1–Q3 was TWD 2.64.

• The company returned to profitability for the first nine months of 2024, with improved margins compared to the prior year.

• Inventory levels among smartphone customers have improved, but end-market demand remains volatile due to geopolitical and economic factors.

• The Board authorized the financial statements on November 8, 2024, with an unqualified review opinion.

Financial highlights

• Q3 gross margin declined to 21.6% from 27.2% last quarter due to lower capacity utilization (50% vs. 65%).

• Q3 net margin was 4.8%; Q3 operating margin dropped to 2.9% from 10.1% last quarter.

• Q1–Q3 2024 revenue totaled TWD 13.75 billion, up 25% year-over-year; gross margin for the period was 23.9%.

• Net profit for Q1–Q3 2024 was TWD 1,120.3 million, reversing a net loss in the prior year.

• Q3 depreciation expense was TWD 1,133 million; CapEx was TWD 424 million.

Outlook and guidance

• Q4 2024 revenue expected to decline by mid-teens percentage sequentially, mainly due to continued weakness in China's smartphone market and post-peak Wi-Fi 7 inventory.

• Gross margin for Q4 projected to be in the high teens.

• Full-year 2024 revenue still expected to increase over 2023.

• The company continues to invest in capacity expansion and technology, with significant capital expenditures and ongoing plant construction.

• In October 2024, a two-year loan extension was secured, supporting liquidity and future operations.