Hua Hong Semiconductor Ltd (HHUSF) Q3 2024 Earnings Call Highlights: Strong Net Profit ...

In This Article:

  • Revenue: $526.3 million, 7.4% lower than Q3 2023, 10% higher than Q2 2024.

  • Gross Margin: 12.2%, 3.9 percentage points lower than Q3 2023, 1.7 percentage points higher than Q2 2024.

  • Operating Expenses: $81.4 million, 4.3% lower than Q3 2023, 9.9% lower than Q2 2024.

  • Net Profit: $22.9 million, compared to a loss of $25.9 million in Q3 2023 and a loss of $41.7 million in Q2 2024.

  • Net Profit Attributable to Shareholders: $44.8 million, 222.6% higher than Q3 2023, 571.6% higher than Q2 2024.

  • Basic Earnings Per Share: USD 2.6, 188.9% higher than Q3 2023, 550% higher than Q2 2024.

  • Annualized ROE: 2.8%, 1.6 percentage points higher than Q3 2023, 2.4 percentage points higher than Q2 2024.

  • Net Cash Flows Used in Operating Activities: $26.8 million, compared to $152.1 million generated in Q3 2023 and $96.9 million in Q2 2024.

  • Capital Expenditures: $734 million in Q3 2024.

  • Total Assets: Increased from $12,104.8 billion on June 30, 2024, to $13,082.4 billion on September 30, 2024.

  • Total Liabilities: Increased to $3,867 billion on September 30, 2024, from $3,059.9 billion on June 30, 2024.

  • Debt Ratio: Increased to 28.6% on September 30, 2024, from 25.3% on June 30, 2024.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Hua Hong Semiconductor Ltd (HHUSF) achieved sales revenue of USD 526.3 million in Q3 2024, surpassing guidance and showing sequential growth.

  • The company reached full capacity utilization with a diversified product structure and optimized operational efficiency.

  • Construction of the new 12-inch production line in Wuxi is progressing as planned, with trial production expected to begin by the end of the year.

  • Net profit for Q3 2024 was USD 22.9 million, a significant improvement from losses in the previous quarters.

  • Revenue from Analog and Power Management IC increased by 21.8% over Q3 2023, driven by increased demand for power management IC products.

Negative Points

  • Revenue was 7.4% lower than Q3 2023, primarily due to decreased average selling prices.

  • Gross margin decreased by 3.9 percentage points compared to Q3 2023, affected by lower average selling prices.

  • Revenue from Europe and Japan saw significant declines of 58% and 82% respectively, compared to Q3 2023.

  • Net cash flows used in operating activities were USD 26.8 million in Q3 2024, a decline from positive cash flows in previous quarters.

  • The company faces ongoing price pressure in the 8-inch business, affecting overall profitability.