Primax Electronics (4915) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered solid results with revenue of TWD 16.01 billion, up 4.2% QoQ and 1.8% YoY, driven by PC, gaming, and recovering consumer audio demand.

• Gross margin reached a record 17.1%, up 0.8 percentage points YoY, with EPS at NT$1.70, up 6.3% QoQ and 4.3% YoY.

• Net profit for Q3 2024 attributable to owners was NT$773 million, with YTD EPS at NT$4.58.

• Cash and cash equivalents rose to NT$13.54 billion as of September 30, 2024, up from NT$9.65 billion a year earlier.

• For the nine months ended September 30, 2024, revenue was NT$45,025 million, down 3% YoY, with net profit attributable to owners at NT$2,082 million, up 5%.

Financial highlights

• Operating income for Q3 was TWD 16.009 billion; gross profit hit TWD 2.737 billion, the highest for the period.

• Operating margin was 5.2%, flat QoQ, with OpEx at TWD 1.905 billion.

• Net income for Q3 2024 was NT$837 million, up 5.6% QoQ and 4.7% YoY.

• Cash balance at quarter-end was NT$13.5 billion, up from NT$9.7 billion a year ago.

• Inventory was TWD 8.2 billion, up 8.8% YoY; inventory turnover days at 59.

Outlook and guidance

• Q4 revenue expected to decrease by double digits QoQ due to conservative demand and inventory adjustments.

• PC/gaming to drop mid-single digit YoY; smart lifestyle to see high double-digit YoY decline.

• Near double-digit revenue growth targeted for 2025, with smart lifestyle expected to recover and auto/AIoT to drive growth.

• Dividend payout ratio to be maintained at or above last year’s 73%, with higher payout expected due to increased profit.

• Management expects no significant impact from new IFRS standards effective in 2025.