Coretronic Corporation Announces Third Quarter 2024 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the Third quarter of 2024. For the third quarter ended Sept. 30, 2024, Coretronic reported consolidated sales revenue of NT$10,694 million, driven by a 21% increase in Energy Saving products revenue. This represents an increase of 7% compared to the second quarter and 3% compared to the same period last year. The consolidated gross profit margin for the third quarter was 16.6%, a decrease of 1.3% from 17.9% in the previous quarter, and a decrease of 5.1% compared to 21.7% in the same period last year. This was mainly due to unfavorable exchange rates and changes in product mix. Operating profit for the third quarters was NT$108 million. This marked an increase of 168% compared to the second quarter and a decline of 77% compared to the same period last year. Net income after tax in the third quarter amounted to NT$197 million, representing a decrease of 19.5% and 53% respectively compared with the second quarter and the same period last year. Net income attributable to equity holders of the parent company was NT$203 million in the third quarter, a decrease of 28% compared to NT$282 million in the previous quarter, and a decrease of 57% compared to NT$467 million in the same period last year. The basic EPS* in the third quarter of 2024 was NT$0.52. 

For the first three quarters of 2024, Coretronic reported consolidated sales revenue of NT$29,782 million, representing a slight increase of 1% compared to the consolidated revenue of NT$29,604 million in the same period of 2023. The consolidated gross margin was 17.4%, a decrease of 2.4% compared to 19.8% in the same period last year, primarily due to the adverse impact of changes in the product portfolio. The operating income totaled NT$119 million, which is an 84% decrease compared to the same period last year. The net income was reported at NT$427 million, which represents a 56% decrease compared to NT$980 million in the same period last year. The net income attributable to equity holders of the parent company was NT$628 million, a decrease of 44.5% YoY. The basic EPS* for the first three quarters of this year was NT$1.61, lower than the EPS* of NT$2.9 in the same period last year. 

For the third quarter of 2024, the overall sales revenue of Energy Saving products amounted to NT$5,392 million, an increase of 21% and 12% respectively from the previous quarter and the same period last year. The shipments for this quarter reached 7.6 million units, showing a 1% decrease QoQ and an 8% decrease YoY. The sales revenue of Energy Saving products in the first three quarters of 2024 was about NT$13,979 million, reflecting a 7% increase compared to the same period last year. However, the total shipment volume reached around 22.68 million units, representing a 1% decrease year-on-year. Regarding the 4Q24 operation, Ms. Sarah Lin, President of Coretronic stated that due to the slowdown in demand entering the off-season, shipments of TV/PID models are expected to decline while shipments of Monitor and NB models are anticipated to see slight declines and growth, respectively. Therefore, it is estimated that the overall shipment volume of Energy Saving products in the fourth quarter will slightly decrease compared to the third quarter. This is mainly because the mass production of Monitor LCM and complete Monitor units originally scheduled for October will be postponed to December. Additionally, due to factors such as weak demand for consumer products, slow inventory clearance, and risks from ongoing conflicts, the overall shipment volume of Energy Saving products in 2024 is expected to remain flat. Looking forward to future operations, Sarah pointed out that 2025 operations are projected to be stable, mainly driven by the successful mass production of TV LCMs and Monitor LCM/ complete Monitor units at the Vietnam plant. Shipments of OLED NB models and ODM automotive units are also expected to gradually increase in line with market growth trends. However, overall industrial demand will continue to be affected by geopolitical risks and rising costs due to ongoing conflicts.

In the third quarter, sales revenue of Visual Solutions products reached NT$3,444 million, an increase of 3% from the second quarter. The shipments were approximately 232K units, which was similar to the second quarter. However, compared to the same period last year, revenue and shipment volume decreased by 9% and 13%, respectively. For the first three quarters of 2024, the sales revenue was NT$10,125 million, with a shipment volume of about 691K units. This represents a 1% decrease in revenue and an 8% decrease in shipment volume compared to the same period last year. For the operational performance in 4Q24, Sarah mentioned that due to the impact of economic recession and ongoing geopolitical issues, overall customer demand has become more conservative. Consequently, the total shipment volume of Visual Solutions products in the fourth quarter is expected to decrease by more than 20% compared to the previous quarter. At the same time, due to factors such as tight demand caused by the global economic downturn, sports event effects falling short of expectations, and year-end inventory control by customers, the shipment volume of Visual Solutions products in 2024 is expected to decrease by about 10% compared to 2023. Looking forward to the future operation and development, Sarah explained that as to the European Union's ban on mercury bulbs starting in 2027, many customers are actively transitioning to solid-state illumination (SSI) products, which is expected to drive replacement demand for laser light source models. Demand in the Pro-AV market remains weak, with only slight growth in North America. Automotive projection products will begin mass production in the fourth quarter, and shipments will continue to grow as new customers and new models are mass-produced in 2025.