Novatek Microelectronics (3034) investor relations material

Executive summary

• Q1 2026 revenue reached TWD 23.15 billion, up 1.4% quarter-over-quarter but down 14.7% year-over-year, driven by growth in SoC and large display driver ICs despite weak smartphone demand.

• Net income for Q1 2026 was TWD 3.77 billion, up 2.1% quarter-over-quarter but down 28.4% year-over-year.

• EPS for Q1 2026 was TWD 6.19, compared to TWD 8.65 in Q1 2025 and TWD 6.07 in Q4 2025.

• SoC business accounted for 44% of Q1 revenue, a historical high, while small/medium drivers declined to 33% and large drivers rose to 23%.

Financial highlights

• Q1 consolidated sales: TWD 23.15 billion (+1.4% QoQ, -14.7% YoY).

• Gross profit: TWD 9.04 billion (+3.8% QoQ, -16.2% YoY).

• Operating income: TWD 4.03 billion (+4.3% QoQ, -29.3% YoY).

• EPS: TWD 6.19 (+0.12 QoQ, -2.46 YoY).

• April revenue: TWD 9.23 billion (+1.16% MoM, +8.93% MoM); first four months revenue: TWD 32.37 billion (-10.68% YoY).

Outlook and guidance

• Q2 2026 revenue projected at TWD 27.5–28.5 billion, up 19–23% quarter-over-quarter.

• Q2 gross margin guidance: 38–41%; operating margin: 16–19%.

• All three major product lines expected to deliver meaningful quarterly growth in Q2, with SoC leading.

• Full-year revenue expected to grow year-over-year, supported by new product launches in high-end applications.

• Monthly sales in Q1 2026 showed a year-over-year decline, with January down 10%, February down 24%, and March down 10%.