Chunghwa Precision Test Tech (6510) Q2 2024 earnings summary

Executive summary

• 2Q24 net revenue reached NT$722.8 million, up 7% sequentially but down 3% year-over-year.

• Net income attributable to shareholders for the six months was NT$80,982 thousand, compared to a net loss of NT$9,170 thousand in the prior year period.

• Gross margin improved to 52.4% in 2Q24, a 4.4 percentage point increase year-over-year and 1.5 points higher than the previous quarter.

• EPS surged to NT$2.04 in 2Q24, up NT$0.97 year-over-year and NT$1.61 quarter-over-quarter; for the six months, EPS was NT$2.47.

• Free cash flow rebounded to NT$250.1 million in 2Q24 after negative figures in prior quarters.

Financial highlights

• Net revenue for 2Q24: NT$722.8 million; 1Q24: NT$675.7 million; 2Q23: NT$744.3 million.

• Operating income for the six months was NT$14,082 thousand, reversing an operating loss of NT$50,988 thousand year-over-year.

• Net income attributable to shareholders: NT$66.98 million in 2Q24, up from NT$35.02 million in 2Q23.

• Operating expenses remained stable at 51% of revenue for the six months.

• Free cash flow: NT$250.1 million in 2Q24, compared to negative NT$62.6 million in 2Q23.

Outlook and guidance

• Participation in SEMICON Taiwan 2024, highlighting innovation in high-speed probe cards for PCIe Gen6 PAM4 testing.

• Industry expects worldwide semiconductor market sales to grow at a 12.5% CAGR from 2024 to 2026.

• Semiconductor probe card market projected to grow at a 6.8% CAGR from 2024 to 2028; MEMS probe card segment at 8.7%.

• The company continues to monitor the impact of ongoing patent litigation and market conditions.

• Management is focused on maintaining a balanced capital structure and maximizing shareholder returns.