Primax Electronics (TWSE: 4915) today held an earnings call for the second quarter ended June 30, 2024.

Key 2Q24 Financial Highlights

• Revenue was NT$15.37 billion, up 12.6% QoQ and down 4.3% YoY
• Gross margin was 17.3%, up 1.4 ppt from 1Q24 and up 1.4 ppt from 2Q23
• Operating margin was 5.2%, up 0.9 ppt QoQ and up 0.2 ppt YoY
• Net income attributable to shareholders of the parent company was NT$727 million, up 25.1% from 1Q24 and up 4% from 2Q23
• Earnings per share (EPS) was NT$1.60, up 25% QoQ and up 3.2% YoY

Primax’s 1H24 consolidated revenue amounted to NT$29.02 billion, down 5.6% year-over-year (YoY). 1H24 gross margin and operating margin were 16.7% and 4.8%, up 1.2 ppt and 0.3 ppt YoY, respectively. Net income attributable to shareholders of the parent company was NT$ 1.31 billion, translating to an EPS of NT$2.88, up 3.6% YoY, for the first half of 2024.

For 2Q24 revenue breakdown, information products accounted for 49% of total revenue, followed by smart lifestyle products (20%) and Auto/ AIoT products (31%). Primax has been optimizing its product mix as Auto/AIoT products is steadily increasing year by year, serving as important growth drivers for the company.

YY Hsiao, General Manager and CFO of Primax, stated that “Primax reported a better-than-expected 2Q24 results driven by AIoT products contributions and PC/gaming rush orders, coupled with favorable foreign exchange rate. Compared to the same period last year, Primax’s overall financial performance showed improvement across three key financial margins, with gross margin reaching a record high for the company and EPS setting a quarterly record. Moreover, Primax continues to invest in new business, and expects the strategy to bear fruit gradually.

Looking ahead to 3Q24, Primax is leveraging its X-in-one Sensory Fusion technology combined with the AIoT to develop innovative and cross-industry applications such as public safety, AIoT (B2B) visual solutions, and automotive products. The company is actively expanding into industrial applications, including industrial vision, acoustic inspection and service robot, offering diverse and customized services to meet client needs, enhancing market competitiveness and profitability. Furthermore, given the global economic uncertainties, the company will take precautionary measures in managing operational risks and adopt a proactive mid to long-term strategy while maintaining solid operational performance.