In This Article:
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Revenue: TWD 18.9 billion in Q3 2024, a 3.6% increase QoQ; TWD 46.3 billion for the first three quarters, a 14.1% decline YoY.
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Gross Margin: 30% in Q3 2024; 32.2% for the first three quarters.
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Operating Profit Margin: 20.2% in Q3 2024; 22.8% for the first three quarters.
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Net Profit Margin: 18.6% in Q3 2024; 20.2% for the first three quarters.
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EPS (Earnings Per Share): 6.18 NT per share in Q3 2024; 20.19 NT per share for the first three quarters.
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Prepayment Amount: TWD 33.1 billion as of September 2024, a 6% decrease from the previous quarter.
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ROE (Return on Equity): 12.8% in Q3 2024, down from 35% in Q3 2023.
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ROA (Return on Assets): 5.4% in Q3 2024, down from 12.7% in Q3 2023.
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Cash and Cash Equivalents: TWD 41.7 billion in Q3 2024, with total cash-related assets of TWD 68 billion.
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Utilization Rate: Over 90% for 12-inch wafers; lower for 8-inch wafers due to sluggish demand.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GlobalWafers Co Ltd (ROCO:6488) reported a 3.6% increase in revenue quarter-over-quarter for Q3 2024, indicating a positive growth trend.
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The company anticipates a market recovery in 2025 driven by improving semiconductor demand and new customer capacity coming online.
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GlobalWafers is strategically expanding its operations in the US and Europe, with significant government subsidies supporting these projects.
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The company is well-positioned to capitalize on trends in AI and advanced processing, focusing its CapEx on advanced and specialty products.
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GlobalWafers maintains a strong financial position with substantial cash reserves and a robust prepayment balance, supporting its growth initiatives.
Negative Points
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GlobalWafers experienced a 14.1% year-over-year decline in revenue for the first three quarters of 2024, primarily due to sluggish demand in the semiconductor market.
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The company's gross margin decreased by 2.3% quarter-over-quarter in Q3 2024, affected by increased electricity costs, depreciation, and variations in product mix.
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There is a slower-than-expected pace of inventory absorption by customers, particularly in the automotive and industrial sectors.
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The silicon carbide market faced challenges due to oversupply and critical price competition, impacting GlobalWafers' revenue.
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The company anticipates continued pressure on gross margins due to new capacity coming online and higher depreciation costs in the near term.
Q & A Highlights
Q: How does the Advanced Manufacturing Investment Credit (AMIC) affect the effective tax rate for GlobalWafers' US operations and the overall group? Can you discuss the impact on other financial items such as depreciation and OPEX? A: The AMIC provides a direct cash fund, not a tax credit, which will offset depreciation, improving gross margins for US operations like GWA and Missouri. The impact on the overall group will be smaller since it mainly benefits these two sites. The European fund will improve profit before tax instead of gross margin due to its nature.