Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ChipMOS TECHNOLOGIES Inc (IMOS, Financial) reported a 6.3% increase in full-year 2024 revenue compared to 2023.
- The company announced a share repurchase program and another dividend, reflecting strong market position and focus on shareholder value.
- OLED revenue increased more than 27% for the full year 2024, benefiting from higher penetration rates.
- Total auto panel revenue in 2024 increased 16.6% compared to 2023.
- The company ended Q4 2024 with a strong balance sheet and cash and cash equivalents increased by TWD2,865 million compared to the beginning of the year.
Negative Points
- Q4 2024 revenue decreased 11% compared to Q3 2024, reflecting industry-wide demand softness.
- Gross margin for 2024 decreased by 3.6 percentage points compared to 2023.
- Operating profit margin in 2024 decreased by 3.3 percentage points compared to 2023.
- Net profit for 2024 decreased by 25% compared to 2023.
- The company experienced a decrease in utilization rates, with overall utilization at 59% in Q4 2024 compared to 67% in Q3 2024.
Q & A Highlights
Q: Can you please give us a revenue and gross margin outlook for Q1 2025?
A: We didn't provide Q1 2025 outlook guidance. We will probably wait until Q2 or Q3 to have better visibility. However, we expect our business momentum will improve through 2025, leading to a stronger second half with operating momentum, end markets, and end-customer inventory levels. - Jesse Huang, Spokesperson & Senior Vice President of Strategy and Investor Relations
Q: Previously, management mentioned relatively stronger automotive panel and OLED, DDIC business momentum. Can you please give us the outlook for 2025?
A: We would still expect to benefit from a higher OLED penetration rate and share gain and also stable display panel penetration in the automotive segment. - Shih-Jye Cheng, Chairman of the Board & President
Q: Do you see some customers reallocate the backend order back to Taiwan due to some foundries in China increasing prices recently?
A: Recently, we are benefiting from some short-term rush orders driven by early restocking for increased tariffs and China's subsidy programs and stimulus policy. Additionally, due to the earthquake that happened in January, which caused broken wafers in fabs, we would expect the reloaded wafers would be dispatched to the back end in April. - Shih-Jye Cheng, Chairman of the Board & President
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
