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

Key 3Q24 Financial Highlights

• Revenue was NT$16 billion, up 4.2% QoQ and 1.8% YoY
• Gross margin was 17.1%, down 0.2 ppt from 2Q24 and up 0.8 ppt from 3Q23
• Operating margin was 5.2%, remained stable sequentially while down 0.1 ppt YoY
• Net income attributable to shareholders of the parent company was NT$773 million, up 6.3% from 2Q24 and up 4.9% from 3Q23
• Earnings per share (EPS) was NT$1.70, up 6.3% QoQ and 4.3% YoY

Primax’s consolidated revenue for the first three quarters amounted to NT$45.03 billion, down 3.1% year-over-year (YoY). Gross margin and operating margin were 16.8% and 4.9%, up 1 ppt and 0.1 ppt YoY, respectively. Net income attributable to shareholders of the parent company was NT$ 2.08 billion, translating to an EPS of NT$4.58, up 3.9% YoY, for the first three quarters of 2024.

For 3Q24 revenue breakdown, information products accounted for 50% of total revenue, followed by smart lifestyle products 24% and Auto/ AIoT products 26%. Primax continues optimizing its product portfolio, Auto and AIoT contribution reached 28% for the first three quarters, serving as key growth drivers of the company.

YY Hsiao, General Manager and CFO of Primax, stated that “Primax delivered solid 3Q24 results, driven by PC/gaming rush orders, coupled with consumer speaker and headphone demand sequential improvement, while Auto/AIoT segments were impacted by inventory adjustments and project delays. Primax will gradually bear fruit from our new business investment. 3Q24 sustained high gross margin and all profitability metrics showed improvement for the first three quarters of 2024.

Looking ahead to 4Q24, in light of global economic uncertainties and demand slow-down, Primax will strengthen risk management and enhance operational efficiency to maintain resilience. Meanwhile, Primax leverages group synergies through its X-in-one sensory fusion capability to tap into niche markets, including AI conferencing, automotive products, public safety solutions, AIoT (B2B) visual solutions and premium speakers. By integrating group recourse to strengthen its competitive edge, Primax aims to establish a solid foundation for future growth.