Primax Electronics (4915) Q2 2025 earnings summary

Executive summary

• Q2/2Q25 revenue was TWD/NT$14.6 billion, down 5.1% YoY, impacted by NTD appreciation, but gross margin reached a record 17.5% due to favorable product mix.

• EPS for Q2 was NT$1.60, nearly flat YoY, supported by effective FX hedging despite currency headwinds and increased R&D investment.

• R&D expense rose 6.4% YoY to NT$865mn, representing 5.9% of revenue, reflecting ongoing technology innovation.

• Strategic focus on system-level modules (SOM) and expansion in Auto and AIoT segments.

• Operating revenue for the six months ended June 30, 2025 was NT$29,359,896 thousand, up 1.2% YoY.

Financial highlights

• Gross margin: 17.5% (record high), up 0.3 ppt QoQ and 0.2 ppt YoY; gross profit for 2Q25 was NT$2.55bn, down 4.3% YoY.

• EPS: NT$1.60 in Q2, compared to NT$1.61 in Q1; 1H25 EPS reached NT$3.21, up 11.5% YoY.

• Net income for 2Q25 was NT$733mn, down 7.5% YoY; net margin was 5.0%, down 0.2ppt YoY.

• Net cash at end of Q2: TWD 9.7–10 billion after dividend payout; ending cash balance at NT$12.6bn.

• Free operating cash flow for 2Q25 was NT$1,382mn.

Outlook and guidance

• Annual revenue in NTD expected to be slightly better than last year if current FX rates persist.

• 3Q25 USD revenue expected to increase mid- to high single digit YoY, with product mix optimization to offset NTD appreciation.

• Auto and AIoT segments forecasted for high double-digit growth in H2; Smart Lifestyle to see high double-digit QoQ growth but single-digit YoY decline due to product EOL.

• Gross margin expected to remain stable or improve, barring further major currency appreciation.

• Dividend payout ratio for next year targeted at 80%.