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Chang Wah Electromaterials (par value of NT$1 per share) Board of Directors Meeting Resolutions
Issued by: Chang Wah Electromaterials Inc.
Issued on: May 13, 2024
Chang Wah Electromaterials Inc. (CWE, 8070.tw) convened a Board of Directors meeting on the 13th, during which the Board approved the reviewed consolidated financial report for the first quarter of 2024. The Company reported consolidated revenue of NT$4,019 million for the period, with a gross margin of 18%. Net profit attributable to owners of the Corporation reached NT$320 million, and after-tax earnings per share (EPS), based on a par value of NT$1 per share, was NT$0.48.
CWE reported consolidated revenue of NT$4,019 million for the first quarter of 2024, representing a 4% decrease both quarter-over-quarter and year-over-year. The gross margin for the quarter was 18%, with an operating margin of 10%, showing stable performance compared to both the previous quarter and the same period last year. Net profit attributable to owners of the Corporation amounted to NT$320 million, and after-tax EPS, calculated based on the average outstanding shares with a par value of NT$1, was NT$0.48, an improvement over the NT$0.17 in the previous quarter and NT$0.31 from the same period last year. If the NT$2,312 million in other comprehensive income attributable to owners of the Corporation were included, the EPS would be NT$3.94 per share. When calculated based on a par value of NT$10 per share, this would translate to NT$39.4 per share. This reflects not only the Company's stable operational performance but also the significant unrealized potential from its investments, which will serve as a strong foundation for future dividend distribution and support a stable and sustainable dividend policy. The management team remains focused on achieving year-over-year increases in cash dividends.
Over the past two quarters, end-market trends reveal relatively strong demand for consumer electronics chips, particularly in the smartphone segment. Meanwhile, the PC market continues to navigate inventory adjustments. In the automotive and industrial sectors, inventory levels among IDM customers bottomed out in the first quarter of 2024, with gradual restocking beginning in the second quarter. However, demand in these sectors has not yet rebounded to the previous peak levels. Overall, CWE expects a gradual improvement in performance during the second quarter. Looking ahead to the second half of the year, market conditions will largely hinge on broader economic trends and the pace of market recovery. Despite these uncertainties, the Company remains optimistic about its operational prospects for the latter half of 2024.
For CWE’s financial data, please refer to the table below or visit the official website at：https://www.cwei.com.tw/
Unit: NT$ Million
| Period | Q1 2024 | Q4 2023 | Q1 2023 | QoQ | YoY |
|---|---|---|---|---|---|
| Consolidated revenue | 4,019 | 4,170 | 4,166 | -4% | -4% |
| Gross profit | 727 | 790 | 802 | -8% | -9% |
| Gross margin | 18% | 19% | 19% | Down 1% | Down 1% |
| Profit from operations | 387 | 424 | 461 | -9% | -16% |
| Operating margin | 10% | 10% | 11% | Flat | Down 1% |
| Profit before income tax | 686 | 312 | 475 | 120% | 44% |
|
Net profit attributable to owners of the Corporation |
320 | 117 | 213 | 174% | 50% |
| After-tax EPS (NT$) | 0.48 | 0.17 | 0.31 | 182% | 55% |
Note: As of March 31, 2024, the total number of shares outstanding was 689,422 thousand shares.