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01/12 05:52
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals: positive aspects include a new share repurchase program and stable dividend declaration, which generally support stock prices. However, financial performance shows declining net profit and stagnant margins, while management's unclear guidance and conservative CapEx strategy amid trade policy uncertainties weigh negatively. The Q&A session highlights risks from trade policies and operational challenges, without clear resolution. Given these factors, the stock price is likely to remain stable, resulting in a neutral prediction.
Total Revenue NT$5,532 million, increased 2.5% compared to Q4 2024.
Net Profit NT$176 million, decreased 24.1% compared to Q4 2024, primarily due to a decrease in net non-operating income.
Gross Margin 9.4%, flat compared to Q4 2024 (9.5%).
Operating Profit NT$116 million, operating profit margin at 2.1%, mostly flat compared to Q4 2024.
Net Non-Operating Income NT$82 million, decreased NT$73 million compared to Q4 2024, mainly due to a decrease in foreign exchange gains.
EBITDA NT$1,425 million.
Cash and Cash Equivalents NT$13,566 million, decreased NT$1,653 million compared to the beginning of the year.
Net Free Cash Inflow NT$831 million, compared to NT$800 million for the same period in 2024.
Capital Expenditures (CapEx) NT$570 million in Q1 2025.
Depreciation Expenses NT$1,309 million in Q1.
Return on Equity 2.8%.
Total Assets NT$43,214 million.
Total Liabilities NT$18,270 million.
Total Equity NT$24,944 million.
Accounts Receivable Turnover Days 85 days.
Inventory Turnover Days 49 days.
DDIC Revenue: DDIC product represented 27.3% of total revenue in Q1 with a decrease of 10.6% compared to Q4 2024.
Gold Bump Revenue: Gold bump revenue increased significantly by 24.5% compared to Q4 2024.
Memory Products Revenue: Memory products represented 38.8% of total Q1 revenue, with a 2.4% increase compared to Q4 2024.
Flash Revenue: Flash revenue represented about 24.7% of Q1 revenue, which was up 4.9% compared to Q4 2024.
Automotive and Industrial Revenue: Total revenue from Automotive and Industrial represented about 27% of Q1 revenue, increasing 13% compared to Q4 2024.
Smartphone Revenue: Smartphone revenue represented 36.5% of total Q1 revenue, increasing slightly compared to Q4 2024.
Utilization Rate: Overall utilization rate was 62% in Q1 2025, up from 59% in Q4 2024.
CapEx Investment: Invested NT$570 million in CapEx in Q1, with a conservative approach planned for 2025.
Share Repurchase Program: Approved a new share repurchase program to buy back up to 15 million shares due to market volatility.
Dividend Declaration: Board approved a dividend of NT$1.2 per common share.
Competitive Pressures: The company is facing fluid trade policies related to U.S. and China restrictions, which could impact demand and create uncertainty in the coming quarters.
Regulatory Issues: The ongoing trade restrictions between the U.S. and China are causing uncertainty, which may affect the company's outlook.
Supply Chain Challenges: The company acknowledges the importance of its strategic location in the supply chain but recognizes potential impacts from trade policies.
Economic Factors: There is a potential demand slowdown that could affect the company's performance, although currently, they are experiencing low to no impact from tariffs.
Operational Risks: The installation of a new power supply circuit at the Chupei factory resulted in fewer working days, which may impact revenue.
Capital Expenditure Risks: The company is taking a conservative approach to capital expenditures in 2025, which may limit growth opportunities if customer demand increases.
Utilization Rate Improvement: Improving our utilization rate will be a priority.
CapEx Strategy: We are taking a conservative approach with our CapEx budget in 2025, similar to prior years.
Dividend and Share Repurchase: The Board approved a dividend of NT$1.2 per common share and a new share repurchase program for up to 15 million shares.
Long-term Market Position: We are in the right long-term end markets with a leadership position to build on.
Power Supply Installation: Added a 69-KV UHV power supply circuit at Chupei factory to ensure reliable power.
Q2 Memory Product Expectations: Expect to benefit from customers’ restocking and stable prices, with positive growth in commodity and niche DRAM.
Q2 DDIC Product Outlook: UT level for smartphone products is improving, particularly in OLED with customers’ re-stocking.
2025 Revenue Outlook: Expect memory momentum to be better than DDIC in Q2.
Impact of Trade Policies: Fluid trade policies may impact outlook, but currently low to no impact from tariffs.
Free Cash Flow Focus: Focus on supporting customers while driving strong free cash flow.
Dividend per share: NT$1.2 per common share approved by the Board.
Share repurchase program: The company will repurchase up to 15 million shares on the open market of the Taiwan Stock Exchange.
The earnings call reveals several negative factors: a decline in operating profit margin, increased operating expenses, and a net loss due to foreign exchange losses. Despite positive growth in memory and NAND Flash revenue, the overall financial performance is weak, with declining gross margins and revenue. The Q&A section highlights management's lack of clarity on addressing persistent issues. Share repurchase and dividend distribution are positive but insufficient to offset the broader negative trends. Given these factors, the stock is likely to experience a negative movement in the short term.
The earnings call presents mixed signals: positive aspects include a new share repurchase program and stable dividend declaration, which generally support stock prices. However, financial performance shows declining net profit and stagnant margins, while management's unclear guidance and conservative CapEx strategy amid trade policy uncertainties weigh negatively. The Q&A session highlights risks from trade policies and operational challenges, without clear resolution. Given these factors, the stock price is likely to remain stable, resulting in a neutral prediction.
The earnings call presents a mixed picture. Positive aspects include a share repurchase program and dividend approval, which are favorable for shareholder returns. However, financial performance shows declining net profit and gross margin, raising concerns. Product demand outlook is uncertain due to trade policies, and management's vague responses in the Q&A add to this uncertainty. While there are signs of growth in memory products, the overall sentiment is cautious, leading to a neutral prediction for stock price movement.
The earnings call highlights several challenges: decreased utilization rates, adverse forex impacts, and demand softness in key segments. Despite an increase in revenue, net profit decreased significantly due to these factors and increased expenses. The Q&A section reveals management's cautious outlook and lack of clear guidance, particularly for DDIC and Memory segments. Additionally, the dividend cut and weak guidance further contribute to a negative sentiment. The stock price is expected to react negatively in the short term due to these issues.
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