Primax Electronics (TWSE: 4915) today announced its preliminary results for the third quarter ended September 30, 2023.

• Revenue was NT$15.72 billion, declined 2% quarter-over-quarter (QoQ)
• Gross margin was 16.3%, a 2.1 ppt year-over-year (YoY) improvement,
• Operating margin was 5.3%, a 0.6 ppt YoY expansion.
• Net income was NT$737 million, up 5.3% QoQ
• Earnings per share (EPS) was NT$1.63

Primax’s consolidated revenue for the first three quarter was NT$ 46.47 billion, down 23% YoY. Gross margin and operating margin were 15.8% and 4.8%, up 2.2 ppt and 0.5 ppt YoY respectively. Net income was NT$ 1.99 billion, which translates to an EPS of NT$4.41 for the first three quarter of 2023.

For 3Q23 product breakdown, information products accounted for 47% of total revenue, followed by smart lifestyle products (25%) and Auto/ AIoT related products (27%). Primax has been expanding into high value-added products and optimizing its product mix, Auto/ AIoT products have significantly became more important growth driver for Primax, as the weighting has increased from 14% in 2Q21 to the 27% in 3Q23.

YY Hsiao, General Manager and CFO of Primax, stated that ”Third quarter revenue was impacted by soft end-market demand in PC related and audio products. For Auto/AIoT segment, new business continued to grow while professional audio products demand remained weak due to customer inventory adjustments. On profit wise, Primax strict cost control have led to a significant improvement in gross margin, operating margin and net profit margin.

For 4Q23, Primax is cautious about the macroeconomic conditions with facing the challenges of inflation and raising interest rates. While the inventory adjustments are nearing completion, Primax will closely monitor market demand. Primax will continue to control inventory level, enhance the product portfolio, and invest in innovative AI technology applications. To remain competitive in the rapidly changing market, Primax has proactively managed operational risks, strengthened business resilience, and increased R&D investments to support long-term growth and future development, as a result, our overall operational performance would remain solid.”