Primax Electronics (4915) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue was TWD 13.649 billion (NT$13,648.7 million), down 7% YOY, but gross margin improved to 15.9%–16% and EPS reached a Q1 record of 1.28, driven by PC/gaming rush orders and AIoT contributions.

• Net profit attributable to owners rose 5–5.6% YOY to NT$581.4–605 million, with net margin at 4–4.4%.

• Operating profit margin increased to 4.3%, up 0.4 percentage points YOY, reflecting strict expense control.

• Comprehensive income rose to NT$1,200.0 million, mainly due to favorable exchange differences.

Financial highlights

• Gross margin was 15.9%–16% in Q1 2024, up 1 percentage point YOY.

• Operating income reached NT$587.4 million, up 2.7–3% YOY; operating margin at 4–4.3%.

• Operating cash flow in Q1 was TWD 559 million, up TWD 180 million YOY.

• Cash and cash equivalents increased to TWD 13.087 billion (NT$13,087.0 million), up 20% QOQ and 82.8–83% YOY.

• Dividend payout of TWD 4 per share for 2023 proposed, payout ratio 73%, both record highs.

Outlook and guidance

• Q2 2024 revenue expected to decline by high single digits YOY due to weak consumer demand; profit likely flat YOY, but margins and EPS expected to improve over Q1.

• New projects, including AI PC and Copilot keyboard shipments, anticipated to contribute from H2 2024.

• The group is evaluating the impact of IFRS 18, effective January 1, 2027.