Advantech Reports 2Q24 EPS of NT$2.46

Advantech (TWSE: 2395) today announced the following consolidated financial results for the second quarter of 2024 ending June 30:

• Revenue NT$14.644 billion, up 6% QoQ and decline 14% YoY
• Gross profit NT$5.931 billion, up 7% QoQ and decline 15% YoY
• Operating profit NT$2.166 billion, up 13% QoQ and decline 37% YoY
• Net income NT$2.113 billion, up 6% QoQ and decline 30% YoY
• Earnings per share NT$2.46

Regarding the accumulated operating results of 1H24 in US dollars, Advantech achieved an overall revenue of US$897 million, decreased 20% YoY. In terms of geographic overview, only Taiwan outperformed with 12% YoY growth, mainly driven by shipments of semiconductor equipment and gaming projects. While North America, Europe, North Asia, and Emerging markets experienced double digit decline YoY; China market was single-digit decline in YoY. By business units, each business unit shown double digit decrease in performance compared to the same period last year.

Mr. Eric Chen, CFO and President of General Management at Advantech stated, “The revenue and profits of 1H24 declined by double digit YoY were mainly due to the systematic impacts of geopolitical issues and high inflation, resulted in demand slowdown in global end markets. However, as global economic slowly recovered, the overall order demand has rebounded. Advantech’s 2Q24 Orders-to-Shipments ratio (BB ratio) was 1.01, which rose above 1 for the 1st time since 2Q22. For regional breakdown, 2Q24 BB ratio of North America, Europe and China were 1.00, 1.04 ,and 1.02, respectively, indicating steady recovery in global macro and enterprise spending.

Looking forward to 2H24, benefiting from the applications driven by industrial automation and smart energy, the overall revenue momentum was expected to gradually increase. Moreover, foreseeing the great opportunities driven by AI, Advantech has been actively co-creating with silicon vendors and AI software partners to develop an Edge AI ecosystem. This initiative aims to offer a broader range of hardware, software, and services choices, aspiring to become the preferred ally for enterprise customers in Edge AI applications.