Elite Material Co (2383) Q3 2024 earnings summary

Executive summary

• Net consolidated revenue for 3Q24 reached NT$17.5 billion, up 13.0% sequentially and 47.1% year-over-year, setting a quarterly record high.

• Net income attributable to shareholders was NT$2.5 billion, up 3.3% from 2Q24 and 24.3% from 3Q23; diluted EPS was NT$7.30, also a record high.

• For 1Q-3Q24, revenue was NT$45.8 billion, up 61.2% year-over-year, with net income of NT$6.93 billion, up 97.7% year-over-year; EPS was NT$20.14, all record highs for the period.

Financial highlights

• 3Q24 gross margin was 27.0%, down 0.4pp sequentially and 3.2pp year-over-year; operating margin was 18.1%, down 0.8pp sequentially and 3.0pp year-over-year.

• 3Q24 net margin was 14.4%, compared to 15.8% in 2Q24 and 17.0% in 3Q23.

• Cash and cash equivalents stood at NT$13.6 billion as of September 30, 2024, up from NT$9.3 billion at year-end 2023.

• Total assets rose to NT$70.2 billion, and equity attributable to owners reached NT$32.1 billion.

• Operating income for 3Q24 was NT$3.17 billion, up 26% year-over-year.

Outlook and guidance

• High-end CCL market expected to grow at 26% CAGR (2024-2026), outpacing the overall CCL market at 9% CAGR; EMC expects to outgrow the high-end segment.

• Capacity expansion planned, with total laminate capacity to reach 5.8M sheets/month and prepreg 14.7M meters/month by 2025.

• Board approved NT$8.1 billion capital expenditure for new Dayuan Plant expansion.

• Issued seventh domestic unsecured convertible bonds in October 2024, raising NT$3.33 billion.