2024/07/30
Coretronic Corporation Announces Second Quarter 2024 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2024. For the second quarter ended June 30, 2024, Coretronic reported consolidated sales revenue of NT$9,969 million, driven by the growth in revenue from Energy Saving products. This represents an increase of 9.3% compared to the first quarter and 3.5% compared to the same period last year. The consolidated gross profit margin for the second quarter was 17.9%, an increase of 0.3% from 17.6% in the previous quarter due to changes in product mix and efficiency improvements. However, compared to 20.9% in the same period last year, it decreased by 3% due to changes in product portfolio and exchange rate impacts. Operating profit for the second quarter was NT$40 million. This marked an increase of 242% compared to the first quarter and a decline of 79% compared to the same period last year. Net income after tax in the second quarter amounted to NT$245 million, representing a significant increase of 1,813% compared to the net loss of NT$14 million in the first quarter due to the provision for subsidiary disaster losses, however, it is a decrease of 33% compared to the same period last year. Net income attributable to equity holders of the parent company was NT$282 million in the second quarter, an increase of 97% compared to NT$143 million in the previous quarter, but a decrease of 32% compared to NT$412 million in the same period last year. The basic EPS* in the second quarter of 2024 was NT$0.72.
For the first half of 2024, Coretronic reported consolidated sales revenue of NT$19,088 million, representing a slight decrease of 0.6% compared to the consolidated revenue of NT$19,204 million in the first half of 2023. The consolidated gross margin was 17.8%, a decrease of 1% compared to 18.8% in the same period last year, primarily due to the adverse impact of changes in the product portfolio. The operating income totaled NT$12 million, which is a 95% decrease compared to the same period last year. The net income was reported at NT$230 million, which represents a 59% decrease compared to NT$559 million in the same period last year. The net income attributable to equity holders of the parent company was NT$425 million, a decrease of 36% YoY. The basic EPS* for the first half of this year was NT$1.09, lower than the EPS* of NT$1.7 in the same period last year.
For the second quarter of 2024, the overall sales revenue of Energy Saving products amounted to NT$4,458 million, there was an 8% increase compared to the previous quarter and the same period last year. The shipments for this quarter reached 7.5 million units, showing a 1% decrease QoQ and a 3% decrease YoY. The sales revenue of Energy Saving products in the first half of 2024 was about NT$8,586 million, while the shipment volume totaled around 15.09 million units, a increase of 4% and 3% respectively compared to the same period last year. Regarding the 3Q24 operation, Ms. Sarah Lin, President of Coretronic stated that due to the peak season and the mass production of new models, shipments of TV/PID models will see significant growth. Additionally, NB models are expected to show a growth trend as commercial demand gradually recovers. Therefore, the overall shipment volume of Energy Saving products in the third quarter is expected to increase compared to the second quarter. Looking forward to future business development, Sarah pointed out that the production capacity of TV and Monitor LCM at the Vietnam factory will be gradually ramped up to meet customer order demands. Shipments of OLED NB models will increase in line with market growth trends, and new orders for OLED tablets and mass production of ODM automotive models are also expected to enhance operational performance. The operational performance of all major product lines in the second half of the year is expected to be better than in the first half. Therefore, the overall shipment volume of Energy Saving products in 2024 is anticipated to maintain a growth rate of 10% to 20%.
In the second quarter, sales revenue of Visual Solutions products reached NT$3,328 million, a slight decrease of 0.7% compared to the first quarter. The shipment volume was approximately 233K units, an increase of 4% compared to the first quarter. However, compared to the same period last year, revenue and shipment volume decreased by 0.2% and 5.5%, respectively. For the first half of 2024, the sales revenue was NT$6,681 million, with a shipment volume of about 458K units. This represents a 3% increase in revenue but a 5% decrease in shipment volume compared to the same period last year. For the operational performance in 3Q24, Sarah mentioned that third quarter is a traditional peak season, and shipment volumes are expected to increase each month. However, due to uncertainties from various macroeconomic factors, customer order visibility remains cautious. Therefore, the overall shipment volume of Visual Solutions products in the third quarter is expected to grow by about 10%. Nevertheless, we will maintain dynamic and flexible manufacturing capabilities for Visual Solutions products to meet the rush orders from customers and strive to enhance performance. Looking forward to the future operation and development, Sarah explained that as the industry enters the peak season in the second half of the year, the trend of declining demand is expected to gradually ease. Demand for business and home entertainment products continues to rise, and there are optimistic expectations for a rebound in the Pro-AV market. As Visual Solutions products accelerate market penetration with new platforms and products entering mass production, and with automotive projection display applications expected to drive shipments in the fourth quarter, operations in the second half of the year are anticipated to grow each quarter and outperform the first half. However, the uncertainty of the global economy may continue to affect consumer purchasing willingness, and the demand for sports events has not met expectations. Therefore, it is expected that the shipment volume of Visual Solutions products in 2024 will grow by about 10% YoY.
For the first half of 2024, Coretronic reported consolidated sales revenue of NT$19,088 million, representing a slight decrease of 0.6% compared to the consolidated revenue of NT$19,204 million in the first half of 2023. The consolidated gross margin was 17.8%, a decrease of 1% compared to 18.8% in the same period last year, primarily due to the adverse impact of changes in the product portfolio. The operating income totaled NT$12 million, which is a 95% decrease compared to the same period last year. The net income was reported at NT$230 million, which represents a 59% decrease compared to NT$559 million in the same period last year. The net income attributable to equity holders of the parent company was NT$425 million, a decrease of 36% YoY. The basic EPS* for the first half of this year was NT$1.09, lower than the EPS* of NT$1.7 in the same period last year.
For the second quarter of 2024, the overall sales revenue of Energy Saving products amounted to NT$4,458 million, there was an 8% increase compared to the previous quarter and the same period last year. The shipments for this quarter reached 7.5 million units, showing a 1% decrease QoQ and a 3% decrease YoY. The sales revenue of Energy Saving products in the first half of 2024 was about NT$8,586 million, while the shipment volume totaled around 15.09 million units, a increase of 4% and 3% respectively compared to the same period last year. Regarding the 3Q24 operation, Ms. Sarah Lin, President of Coretronic stated that due to the peak season and the mass production of new models, shipments of TV/PID models will see significant growth. Additionally, NB models are expected to show a growth trend as commercial demand gradually recovers. Therefore, the overall shipment volume of Energy Saving products in the third quarter is expected to increase compared to the second quarter. Looking forward to future business development, Sarah pointed out that the production capacity of TV and Monitor LCM at the Vietnam factory will be gradually ramped up to meet customer order demands. Shipments of OLED NB models will increase in line with market growth trends, and new orders for OLED tablets and mass production of ODM automotive models are also expected to enhance operational performance. The operational performance of all major product lines in the second half of the year is expected to be better than in the first half. Therefore, the overall shipment volume of Energy Saving products in 2024 is anticipated to maintain a growth rate of 10% to 20%.
In the second quarter, sales revenue of Visual Solutions products reached NT$3,328 million, a slight decrease of 0.7% compared to the first quarter. The shipment volume was approximately 233K units, an increase of 4% compared to the first quarter. However, compared to the same period last year, revenue and shipment volume decreased by 0.2% and 5.5%, respectively. For the first half of 2024, the sales revenue was NT$6,681 million, with a shipment volume of about 458K units. This represents a 3% increase in revenue but a 5% decrease in shipment volume compared to the same period last year. For the operational performance in 3Q24, Sarah mentioned that third quarter is a traditional peak season, and shipment volumes are expected to increase each month. However, due to uncertainties from various macroeconomic factors, customer order visibility remains cautious. Therefore, the overall shipment volume of Visual Solutions products in the third quarter is expected to grow by about 10%. Nevertheless, we will maintain dynamic and flexible manufacturing capabilities for Visual Solutions products to meet the rush orders from customers and strive to enhance performance. Looking forward to the future operation and development, Sarah explained that as the industry enters the peak season in the second half of the year, the trend of declining demand is expected to gradually ease. Demand for business and home entertainment products continues to rise, and there are optimistic expectations for a rebound in the Pro-AV market. As Visual Solutions products accelerate market penetration with new platforms and products entering mass production, and with automotive projection display applications expected to drive shipments in the fourth quarter, operations in the second half of the year are anticipated to grow each quarter and outperform the first half. However, the uncertainty of the global economy may continue to affect consumer purchasing willingness, and the demand for sports events has not met expectations. Therefore, it is expected that the shipment volume of Visual Solutions products in 2024 will grow by about 10% YoY.
* Basic EPS was calculated based on the total weighted average outstanding share of each quarter (391m shares in 2Q24, 1Q24 and 2Q23)
