Xintec (3374) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 reached NT$1,642 million, up 17% YoY and 13.7% QoQ; net income was NT$324 million, nearly flat QoQ but up 63% YoY.

• Gross margin improved to 32.2% in Q2 2024 from 27.8% YoY.

• EPS for Q2 2024 was NT$1.20, up 63% YoY; ROE was 15.9%, up 5ppt YoY.

• For 1H 2024, revenue was NT$3,086 million, up 13.3% YoY; net income was NT$651 million, up 52.4% YoY.

Financial highlights

• Operating income for Q2 2024 was NT$411 million, up 47% YoY; operating margin rose to 25%.

• Gross profit for 1H 2024 rose 30.6% YoY to NT$1,007 million, with gross margin at 32.6%.

• Net profit margin for Q2 2024 was 19.8%, up 5.6ppt YoY.

• Cash and equivalents at June 30, 2024, were NT$4,416 million, up from NT$3,932 million YoY.

• Capital expenditures for 1H 2024 totaled NT$675 million.

Outlook and guidance

• The company continues to invest in capacity expansion and R&D to support long-term growth.

• Forward-looking statements indicate expectations of continued growth but highlight significant risks and uncertainties that may impact actual results.

• Dividend policy maintains a payout ratio of at least 50% of distributable earnings as cash dividends.