ASE Technology Holding Co., Ltd. Announces Monthly Net Revenues*

Rhea-AI Summary

ASE Technology Holding Co., (NYSE: ASX, TAIEX: 3711, 'ASEH') announced its unaudited consolidated net revenues for May 2024. The company reported a 3.7% month-over-month increase in NT$ net revenues, totaling NT$47,493 million. Year-over-year, this represents a 2.7% increase. In US$ terms, net revenues rose by 2.6% from April 2024 but saw a 2.7% decline compared to May 2023.

The ATM assembly, testing, and material business segment reported a 5.5% sequential increase in NT$ net revenues, amounting to NT$26,568 million, with a year-over-year increase of 1.3%. In US$ terms, this segment saw a 4.4% sequential rise but a 4.1% decline year-over-year.

Positive

• Net revenues for May 2024 totaled NT$47,493 million, a 3.7% increase from April 2024.
• Year-over-year, NT$ net revenues grew by 2.7%.
• The ATM assembly, testing, and material business segment saw a 5.5% month-over-month increase in NT$ net revenues.
• Sequentially, the ATM business segment's US$ net revenues rose by 4.4%.

Negative

• In US$ terms, net revenues for May 2024 declined by 2.7% year-over-year.
• The ATM business segment's US$ net revenues decreased by 4.1% compared to May 2023.

Insights

Financial Analyst

ASE Technology Holding Co., Ltd.'s announcement of monthly net revenues provides a snapshot of the company's financial health. The reported sequential increase of 3.7% in net revenues for May 2024 indicates a positive trend. From a financial perspective, this slight uptick suggests a recovery or an improvement in business operations compared to April 2024. However, the year-over-year (YoY) change shows only a modest increase of 2.7%, which may not entirely impress investors looking for more substantial growth.

Notably, the ATM (assembly, testing and material) net revenues segment showed a 5.5% sequential increase in NT$ terms, a more robust growth compared to the overall company revenues. Despite this, the YoY growth here is only 1.3% and in US$ terms, revenues actually fell by 4.1%. This discrepancy could point to currency exchange rate effects or possibly a decline in demand or pricing pressures in the international market.

Investors should be aware of the modest sequential growth as a potential sign of stabilization but should also be cautious of the lackluster YoY performance, particularly in the ATM segment. Furthermore, the YoY decline in US$ revenues suggests potential challenges in global markets, which could impact the company's long-term growth prospects.

Overall, these financial results might offer a mixed bag for stakeholders. While short-term improvements are positive, the subdued YoY growth and international revenue decline warrant a cautious outlook, especially in terms of future revenue scalability and market conditions.

Market Research Analyst

ASE Technology Holding Co., Ltd.'s revenue information for May 2024 provides useful data for understanding current market dynamics. The sequential increase in net revenues can indicate a recovery phase, typically aligned with business cycles and market demand fluctuations. This trend is particularly seen in the ATM segment, reflecting a seasonally adjusted improvement or increased orders within the supply chain.

However, the YoY figures are less encouraging, showing only a minor growth of 2.7% overall and a decline in US$ terms for the ATM business. This suggests that although there might be short-term positive momentum, the company faces challenges that impact its longer-term performance. Factors like market saturation, increased competition, or price sensitivity could be influencing these results.

From an investor's standpoint, the data suggests a need to closely monitor the company's ability to sustain and build upon this sequential growth. Additionally, understanding the external factors affecting the YoY revenue, such as economic conditions or competitive actions, is important for evaluating future growth potential. Investors should consider these aspects when assessing ASEH's stock potential in the broader context of the semiconductor and electronics assembly markets.

In summary, while the figures reflect some positive movements, long-term sustainability and growth remain uncertain, necessitating a careful and informed approach for potential investors.

TAIPEI, June 11, 2024 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (NYSE: ASX, TAIEX: 3711, "ASEH" or the "Company"), announces its unaudited consolidated net revenues for May 2024.

CONSOLIDATED NET REVENUES (UNAUDITED)
		May		Apr		May		Sequential		YoY
(NT$ Million)		2024		2024		2023		Change		Change
Net Revenues		47,493		45,820		46,239		+3.7 %		+2.7 %
		May		Apr		May		Sequential		YoY
(US$ Million)		2024		2024		2023		Change		Change
Net Revenues		1,467		1,430		1,508		+2.6 %		-2.7 %

Net revenues for ATM assembly, testing and material business are as follows:

ATM NET REVENUES (UNAUDITED)
		May		Apr		May		Sequential		YoY
(NT$ Million)		2024		2024		2023		Change		Change
Net Revenues		26,568		25,188		26,232		+5.5 %		+1.3 %
		May		Apr		May		Sequential		YoY
(US$ Million)		2024		2024		2023		Change		Change
Net Revenues		821		786		856		+4.4 %		-4.1 %

*This press release is intended to comply with Taiwan regulatory requirements.

Safe Harbor Notice:

This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors.  The announced results of the first quarter of 2024 are preliminary and subject to audit adjustments. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2023 Annual Report on Form 20-F filed on April 3, 2024.

Investor Relations Contact:

ir@aseglobal.com  Tel: +886.2.6636.5678 https://www.aseglobal.com

 

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SOURCE ASE Technology Holding Co., Ltd.

FAQ

What were ASE Technology's consolidated net revenues for May 2024?

ASE Technology's consolidated net revenues for May 2024 were NT$47,493 million.

How did ASE Technology's May 2024 revenues compare to April 2024?

ASE Technology's May 2024 revenues increased by 3.7% compared to April 2024.

What was the year-over-year change in ASE Technology's net revenues for May 2024 in NT$?

The year-over-year change in ASE Technology's net revenues for May 2024 in NT$ was a 2.7% increase.

How did the ATM business segment perform in May 2024?

The ATM business segment reported NT$26,568 million in revenues, a 5.5% increase from April 2024 and a 1.3% increase year-over-year.

What was the sequential change in US$ net revenues for ASE Technology's ATM business in May 2024?

The sequential change in US$ net revenues for ASE Technology's ATM business in May 2024 was a 4.4% increase.

Did ASE Technology's net revenues for May 2024 increase or decrease in US$ terms year-over-year?

ASE Technology's net revenues for May 2024 decreased by 2.7% year-over-year in US$ terms.