ChipMOS Technologies (IMOS, Financial) has unveiled a new share repurchase initiative authorized by its board of directors, with a maximum budget of NT$525 million, equating to roughly $16.4 million. This program will enable the acquisition of up to 15 million shares from the open market via the Taiwan Stock Exchange, representing about 2.06% of the company's total issued shares.
The buyback will be conducted at prices ranging from NT$18.87 to NT$35.00 per share. However, the company has indicated that it may continue repurchasing shares even if prices dip below this range. This authorization spans from May 14 to July 13, providing the company a specific timeframe to execute its share buyback plan effectively.
IMOS Key Business Developments
Release Date: February 25, 2025
- Full-Year 2024 Revenue: Increased 6.3% compared to 2023.
- Q4 2024 Revenue: TWD5,400 million, decreased 11% compared to Q3 2024.
- Gross Margin: 9.5% in Q4 2024, down from 13.9% in Q3 2024.
- Net Earnings: TWD1.95 for full-year 2024; TWD0.32 in Q4 2024.
- EBITDA: TWD1,388 million in Q4 2024.
- Operating Profit Margin: 2.2% in Q4 2024, decreased by 4.7 ppts compared to Q3 2024.
- Net Non-Operating Income: TWD155 million in Q4 2024.
- Total Assets: TWD45,380 million at the end of Q4 2024.
- Cash and Cash Equivalents: TWD15,219 million as of December 31, 2024.
- CapEx: TWD5,451 million for full-year 2024.
- Depreciation Expenses: TWD1,271 million in Q4 2024.
- Free Cash Flow: Net free cash outflow of TWD938 million for full-year 2024.
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.
