Primax Electronics (TWSE: 4915) today held an earnings call for the fourth quarter and fiscal year ended December 31, 2023.
Key Full Year 2023 Financial Highlights
- Revenue was NT$60.49 billion, down 23.7% year-over-year (YoY)
- Gross margin was 15.8%, improved by 2 ppt year-over-year (YoY)
- Operating margin was 4.5%, up 0.3 ppt YoY
- Net income was NT$2.49 billion, down 9.4% YoY
- Earnings per share (EPS) was NT$5.50
Primax’s 4Q23 consolidated revenue was NT$ 14.02 billion, down 11% QoQ. Thanks to the product mix improvement, 4Q23 gross margin was 16.1%, up 1.1 ppt YoY, while operating margin was 3.8%, down 0.3 ppt YoY. Net income was NT$ 495 million, which translates to an EPS of NT$1.09 for 4Q23.
For 4Q23 product breakdown, information products accounted for 53% of total revenue, followed by smart lifestyle products (21%) and Auto/ AIoT related products (26%). Primax has been optimizing its product mix, as our Auto/AIoT products are steadily increasing contribution year by year, serving as important growth drivers for the company.
YY Hsiao, General Manager and CFO of Primax, stated that “2023 was a challenging year marked by high inflation, raising interest rates and soft end-market demand. Primax maintained business resilience and achieved solid operational performance, as we reported record-high gross margin and operating margin. Furthermore, 2023 annual EPS reached the second highest level in company history. Primax continues to invest in Auto/AIoT segments, offering cutting-edge solutions to further improve market competitiveness and increase profitability.
Looking ahead to 1H24, Primax remains conservative regarding the overall market outlook. However, the Company will proactively focus on improving its operational efficiency, optimizing its product mix, and enhancing its operational structure. Primax continues to develop new products and customers and provides customized and diversified customer services. We expect our strategy will bear fruit gradually. Primax has taken precautionary measures to aggressively managing operational risks, closely monitor market demand and maintain optimism on the mid to long term outlook.”