Yageo (2327) Q3 2024 earnings summary

Executive summary

• Third quarter revenue reached NT$31.738 billion, up 1% sequentially and 15.9–16% year-over-year, with stable gross margin at 35.2%.

• Net income for Q3 was NT$5.649 billion, with EPS at NT$11.01, both up from the previous quarter.

• EBITDA for Q3 was NT$8.857 million, margin close to 28%.

• Year-to-date revenue was NT$91.661 billion, up 14.2% from the same period last year.

• Balance sheet remains strong with cash at NT$94.244 billion and net financial debt reduced sequentially.

Financial highlights

• Operating profit for Q3 was NT$6.636 billion (20.9% margin), up slightly quarter-over-quarter and year-over-year.

• Gross margin for Q3 was 35.2%, up 0.1 percentage point year-over-year.

• Net income margin for Q3 was 17.8%, with a slight year-over-year increase.

• For 1Q–3Q2024, EPS was NT$31.06, up from NT$25.31 in the prior year period.

• OPEX remained controlled at NT$4.5 billion, with OPEX ratio improving year-over-year.

Outlook and guidance

• Q4 revenue is expected to decline by a single-digit percentage quarter-on-quarter due to seasonality.

• Gross margin and operating profit margin are both projected to decrease by a low single-digit percentage point sequentially.

• Utilization rates for Q4 to be maintained at Q3 levels (standard: 65%, premium: 75%) to prepare for Chinese New Year.

• Maintains optimism about operational momentum and future outlook, especially for AI applications.