Primax Electronics (4915) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue reached NT$15,918.6 million, up 7.8% YoY, driven by AloT, AI Surveillance, and new consumer audio launches.

• Net profit for 1Q26 was NT$600.1 million, down 18.9% YoY.

• Basic EPS for 1Q26 was NT$1.30, down 19.3% YoY, up 36.8% QoQ.

• Gross margin declined to 15.9%-16% (down 1.3ppt YoY) due to RMB headwinds, higher component costs, and product mix shifts.

• Comprehensive income for 1Q26 was NT$1,187.4 million, up from NT$1,063.2 million in Q1 2025, mainly due to higher exchange differences.

Financial highlights

• Operating income for 1Q26 was NT$690.2 million, down 6.7% YoY.

• Free operating cash flow was negative NT$627.7 million in 1Q26, compared to an inflow in 1Q25.

• Ending cash balance stood at NT$12,882 million.

• Total assets as of March 31, 2026 were NT$52,771.1 million, up from NT$49,979.6 million a year earlier.

• Gross profit margin for Q1 2026 was 15.9%-16%.

Outlook and guidance

• 2Q26 revenue expected to grow low teens YoY, led by consumer speaker and AloT projects.

• Gross margin may remain under pressure from product mix and rising component costs.

• Information Products revenue to increase slightly YoY and high single digit QoQ; Smart Lifestyle and Auto/AloT segments to see strong double-digit YoY growth.

• The Group is evaluating the impact of IFRS 18, to be adopted in Taiwan in 2028.

• No seasonality or cyclicality factors affected operations in the reporting period.