ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2024

Rhea-AI Summary

ASE Technology Holding reported strong Q3 2024 financial results with net revenues of NT$160,105 million, up 3.9% year-over-year and 14.2% sequentially. Net income reached NT$9,666 million, increasing from NT$8,776 million in Q3 2023 and NT$7,778 million in Q2 2024. Earnings per share rose to NT$2.24 (US$0.138 per ADS). The company's operations showed mixed performance, with ATM segment's gross margin improving to 23.1%, while EMS segment's gross margin decreased to 9.0%. Overall operating margin improved to 7.2% from 6.4% in Q2 2024.

Positive

• Revenue growth of 14.2% quarter-over-quarter to NT$160,105 million
• Net income increased 10.1% year-over-year to NT$9,666 million
• ATM segment gross margin improved by 1.0 percentage points to 23.1%
• Overall operating margin increased to 7.2% from 6.4% in previous quarter

Negative

• EMS segment gross margin declined by 0.6 percentage points to 9.0%
• High customer concentration with top 5 customers accounting for 46% of revenues
• Net debt to equity ratio at 0.41

Insights

Financial Analyst

ASE Technology's Q3 2024 results show strong performance with notable improvements. Net revenues increased by 3.9% YoY and 14.2% QoQ to NT$160,105 million. The company's profitability metrics are particularly impressive, with net income rising to NT$9,666 million, up from both Q3 2023 and Q2 2024 levels.

The ATM segment demonstrated robust performance with a 23.1% gross margin, while the EMS division maintained steady growth with 6.2% YoY revenue increase. The company's balanced revenue mix between packaging (43%), testing (9%) and EMS (47%) operations provides diversification benefits. The healthy current ratio of 1.18 and manageable net debt to equity ratio of 0.41 indicate strong financial health.

TAIPEI, Oct. 31, 2024 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TWSE: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor assembly and testing services ("ATM") and the provider of electronic manufacturing services ("EMS"), today reported its unaudited net revenues^[1] of NT$160,105 million for 3Q24, up by 3.9% year-over-year and up by 14.2% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,666 million, up from NT$8,776 million in 3Q23 and up from NT$7,778 million in 2Q24.  Basic earnings per share for the quarter were NT$2.24 (or US$0.138 per ADS), compared to NT$2.04 for 3Q23 and NT$1.80 for 2Q24. Diluted earnings per share for the quarter were NT$2.17 (or US$0.134 per ADS), compared to NT$2.00 for 3Q23 and NT$1.75 for 2Q24.

As of September 30, 2024, we have completed the PPA and have retrospectively adjusted the consolidated financial results for prior period.

RESULTS OF OPERATIONS

3Q24 Results Highlights – Consolidated

• Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 43%, 9%, 47%, and 1% of the total net revenues for the quarter, respectively.
• Cost of revenues was NT$133,673 million for the quarter, up from NT$117,184 million in 2Q24.
  • Raw material cost totaled NT$84,658 million for the quarter, representing 53% of the total net revenues.
  • Labor cost totaled NT$16,468 million for the quarter, representing 10% of the total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$13,647 million for the quarter.
• Gross margin increased by 0.1 percentage points to 16.5% in 3Q24 from 16.4% in 2Q24.
• Operating margin was 7.2% in 3Q24, compared to 6.4% in 2Q24.
• In terms of non-operating items:
  • Net interest expense was NT$1,291 million.
  • Net foreign exchange gain was NT$1,890 million, primarily attributable to the depreciation of the U.S. dollar against the New Taiwan dollar.
  • Net loss on valuation of financial assets and liabilities was NT$943 million.
  • Net gain on equity-method investments was NT$485 million.
  • Other net non-operating income was NT$643 million, primarily attributable to miscellaneous income.
    Total non-operating income and expenses for the quarter was NT$784 million.
• Income before tax was NT$12,260 million in 3Q24, compared to NT$10,105 million in 2Q24. We recorded income tax expenses of NT$2,054 million for the quarter, compared to NT$1,950 million in 2Q24.
• Net income attributable to shareholders of the parent was NT$9,666 million in 3Q24, compared to NT$8,776 million in 3Q23 and NT$7,778 million in 2Q24.
• Our total number of shares outstanding at the end of the quarter was 4,412,064,337, including treasury stock owned by our subsidiaries in 3Q24. Our 3Q24 basic earnings per share of NT$2.24 (or US$0.138 per ADS) were based on 4,321,735,473 weighted average numbers of shares outstanding in 3Q24. Our 3Q24 diluted earnings per share of NT$2.17 (or US$0.134 per ADS) were based on 4,391,466,234 weighted average number of shares outstanding in 3Q24.

3Q24 Results Highlights – ATM

• Net revenues were NT$85,790 million for the quarter, up by 2.5% year-over-year and up by 10.3% sequentially.
• Cost of revenues was NT$65,989 million for the quarter, up by 1.4% year-over-year and up by 8.9% sequentially.
  • Raw material cost totaled NT$24,177 million for the quarter, representing 28% of the total net revenues.
  • Labor cost totaled NT$13,309 million for the quarter, representing 16% of the total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$12,163 million for the quarter.
• Gross margin increased by 1.0 percentage points to 23.1% in 3Q24 from 22.1% in 2Q24.
• Operating margin was 10.8% in 3Q24, compared to 9.3% in 2Q24.

3Q24 Results Highlights – EMS

• Net revenues were NT$75,384 million, up by 6.2% year-over-year and up by 19.8% sequentially.
• Cost of revenues for the quarter was NT$68,627 million, up by 6.4% year-over-year and up by 20.6% sequentially.
  • Raw material cost totaled NT$60,912 million for the quarter, representing 81% of the total net revenues.
  • Labor cost totaled NT$3,051 million for the quarter, representing 4% of the total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$1,219 million for the quarter.
• Gross margin decreased by 0.6 percentage points to 9.0% in 3Q24 from 9.6% in 2Q24.
• Operating margin was 3.3% in 3Q24, compared to 3.1% in 2Q24.

LIQUIDITY AND CAPITAL RESOURCES

• Capital expenditures in 3Q24 totaled US$603 million, of which US$312 million was used in packaging operations, US$274 million in testing operations, US$14 million in EMS operations and US$3 million in interconnect materials operations and others.
• Total unused credit lines amounted to NT$361,264 million as of September 30, 2024.
• Current ratio was 1.18 and net debt to equity ratio was 0.41 as of September 30, 2024.
• Total number of employees was 94,456 as of September 30, 2024, compared to 92,243 as of June 30, 2024.

BUSINESS REVIEW

Customers
ATM BASIS

• Our five largest customers together accounted for approximately 46% of our total net revenues in 3Q24, compared to 45% in 2Q24. One customer accounted for more than 10% of our total net revenues in 3Q24.
• Our top 10 customers contributed 61% of our total net revenues in 3Q24, compared to 60% in 2Q24.
• Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues in 3Q24, compared to 30% in 2Q24.

EMS BASIS

• Our five largest customers together accounted for approximately 72% of our total net revenues in 3Q24, compared to 67% in 2Q24. One customer accounted for more than 10% of our total net revenues in 3Q24.
• Our top 10 customers contributed 78% of our total net revenues in 3Q24, compared to 74% in 2Q24.

About ASE Technology Holding Co., Ltd.
ASEH is the leading provider of semiconductor manufacturing services in assembly and test. The Company develops and offers complete turnkey solutions covering front-end engineering test, wafer probing and final test, as well as packaging, materials and electronic manufacturing services through USI with superior technologies, breakthrough innovations, and advanced development programs. With advanced technological capabilities and a global presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia, Philippines, Vietnam, Mexico, and Tunisia as well as the United States and Europe, ASEH has established a reputation for reliable, high quality products and services.

For more information, please visit our website at https://www.aseglobal.com.

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. 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.

Supplemental Financial Information
(Unaudited)

Consolidated Operations

	3Q24	2Q24	3Q23
EBITDA[2] (NT$ million)	28,621	26,127	27,822

ATM Operations

	3Q24	2Q24	3Q23
Net Revenues (NT$ million)	85,790	77,813	83,684
Revenues by Application
Communication	50 %	49 %	52 %
Computing	18 %	19 %	19 %
Automotive, Consumer & Others	32 %	32 %	29 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP	45 %	44 %	44 %
Wirebonding	29 %	31 %	32 %
Others	8 %	7 %	8 %
Testing	16 %	16 %	15 %
Material	2 %	2 %	1 %
Capacity & EBITDA
CapEx[3] (US$ million)	588	374	210
EBITDA[2] (NT$ million)	24,186	22,205	23,117
Number of Wirebonders	25,373	25,154	26,215
Number of Testers	5,966	5,676	5,510

EMS Operations

	3Q24	2Q24	3Q23
Net Revenues (NT$ million)	75,384	62,907	70,970
Revenues by Application
Communication	34 %	33 %	34 %
Computing	9 %	11 %	8 %
Consumer	36 %	29 %	37 %
Industrial	11 %	13 %	12 %
Automotive	9 %	11 %	7 %
Others	1 %	3 %	2 %
Capacity
CapEx[3] (US$ million)	14	31	28

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data
(In NT$ million, except per share data)
(Unaudited)

	For the three months ended						For the nine months ended
	Sep. 30 2024		Jun. 30 2024 (Retrospectively Adjusted)		Sep. 30 2023		Sep. 30 2024		Sep. 30 2023
Net revenues
Packaging	69,154		62,834		68,709		191,447		190,584
Testing	14,124		12,623		12,819		38,848		36,518
EMS	74,871		62,853		70,948		197,050		189,063
Others	1,956		1,928		1,691		5,801		5,168
Total net revenues	160,105		140,238		154,167		433,146		421,333
Cost of revenues	(133,673)		(117,184)		(129,251)		(362,839)		(355,337)
Gross profit	26,432		23,054		24,916		70,307		65,996
Operating expenses
Research and development	(7,439)		(7,106)		(6,759)		(21,154)		(18,549)
Selling, general and administrative	(7,517)		(6,939)		(6,752)		(21,191)		(18,934)
Total operating expenses	(14,956)		(14,045)		(13,511)		(42,345)		(37,483)
Operating income	11,476		9,009		11,405		27,962		28,513
Net non-operating income and expenses
Interest expense - net	(1,291)		(1,158)		(1,247)		(3,557)		(3,424)
Foreign exchange gain (loss) - net	1,890		(1,420)		(2,090)		(2,748)		(2,733)
Gain (Loss) on valuation of financial assets and liabilities - net	(943)		2,664		2,820		5,819		4,837
Gain on equity-method investments - net	485		459		656		1,001		970
Others - net	643		551		708		1,700		2,070
Total non-operating income and expenses	784		1,096		847		2,215		1,720
Income before tax	12,260		10,105		12,252		30,177		30,233
Income tax expense	(2,054)		(1,950)		(2,890)		(5,897)		(6,582)
Income from operations and before non-controlling interests	10,206		8,155		9,362		24,280		23,651
Non-controlling interests	(540)		(377)		(586)		(1,176)		(1,318)
Net income attributable to shareholders of the parent	9,666		7,778		8,776		23,104		22,333
Per share data:
Earnings per share
– Basic	NT$2.24		NT$1.80		NT$2.04		NT$5.35		NT$5.20
– Diluted	NT$2.17		NT$1.75		NT$2.00		NT$5.17		NT$5.05
Earnings per equivalent ADS
– Basic	US$0.138		US$0.112		US$0.130		US$0.335		US$0.338
– Diluted	US$0.134		US$0.109		US$0.127		US$0.324		US$0.328
Number of weighted average shares used in diluted EPS calculation ( in thousand shares)	4,391,465		4,383,325		4,347,752		4,385,913		4,346,129
FX (NTD/USD)	32.31		32.23		31.45		31.95		30.81

ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million) 
(Unaudited)

	For the three months ended						For the nine months ended
	Sep. 30 2024		Jun. 30  2024		Sep. 30 2023		Sep. 30 2024		Sep. 30 2023
Net revenues:
Packaging	70,290		63,838		69,731		194,516		193,108
Testing	14,124		12,623		12,819		38,848		36,518
Direct Material	1,295		1,264		1,098		3,898		3,369
Others	81		88		36		250		116
Total net revenues	85,790		77,813		83,684		237,512		233,111
Cost of revenues	(65,989)		(60,612)		(65,094)		(184,952)		(183,611)
Gross profit	19,801		17,201		18,590		52,560		49,500
Operating expenses:
Research and development	(5,773)		(5,483)		(5,344)		(16,392)		(14,361)
Selling, general and administrative	(4,803)		(4,464)		(4,426)		(13,612)		(12,505)
Total operating expenses	(10,576)		(9,947)		(9,770)		(30,004)		(26,866)
Operating income	9,225		7,254		8,820		22,556		22,634

ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million) 
(Unaudited)

	For the three months ended						For the nine months ended
	Sep. 30 2024		Jun. 30 2024 (Retrospectively Adjusted)		Sep. 30 2023		Sep. 30 2024		Sep. 30 2023
Net revenues
Total net revenues	75,384		62,907		70,970		197,656		189,127
Cost of revenues	(68,627)		(56,882)		(64,500)		(179,422)		(172,451)
Gross profit	6,757		6,025		6,470		18,234		16,676
Operating expenses
Research and development	(1,668)		(1,668)		(1,453)		(4,869)		(4,304)
Selling, general and administrative	(2,636)		(2,415)		(2,250)		(7,360)		(6,191)
Total operating expenses	(4,304)		(4,083)		(3,703)		(12,229)		(10,495)
Operating income	2,453		1,942		2,767		6,005		6,181

ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)

			As of Sep. 30, 2024			As of Jun. 30, 2024 (Retrospectively Adjusted)
Current assets
Cash and cash equivalents			71,711			66,173
Financial assets – current			6,643			9,162
Trade receivables			114,061			102,361
Inventories			68,986			63,495
Others			17,364			29,144
Total current assets			278,765			270,335
Financial assets – non-current & Investments – equity -method			42,300			30,887
Property, plant and equipment			283,447			271,870
Right-of-use assets			11,499			11,292
Intangible assets			68,038			68,316
Others			30,510			30,291
Total assets			714,559			682,991
Current liabilities
Short-term borrowings[4]			56,726			51,065
Current portion of bonds payable & Current portion of  long-term borrowings			23,531			18,655
Trade payables			82,595			70,906
Others			72,830			89,495
Total current liabilities			235,682			230,121
Bonds payable			17,073			21,976
Long-term borrowings			108,003			84,414
Other liabilities			22,748			23,053
Total liabilities			383,506			359,564
Equity attributable to shareholders of the parent			309,399			302,323
Non-controlling interests			21,654			21,104
Total liabilities & shareholders' equity			714,559			682,991
Current ratio			1.18			1.17
Net debt to equity ratio			0.41			0.34

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)

		For the three months ended										For the nine months ended
		Sep. 30 2024		Jun. 30 2024 (Retrospectively Adjusted)			Sep. 30 2023						Sep. 30 2024				Sep. 30 2023
Cash Flows from Operating Activities
Profit before income tax		12,260		10,105				12,252						30,177				30,233
Depreciation & amortization		15,037		14,813				14,568						44,449				43,495
Other operating activities items		(5,235)		(8,132)				(5,940)						(19,083)				(6,134)
Net cash generated from operating activities		22,062		16,786				20,880						55,543				67,594
Cash Flows from Investing Activities
Net payments for property, plant and equipment		(19,769)		(14,786)				(14,471)						(47,068)				(41,824)
Other investment activities items		(2,593)		304				(151)						(5,284)				(2,021)
Net cash used in investing activities		(22,362)		(14,482)				(14,622)						(52,352)				(43,845)
Cash Flows from Financing Activities
Total net proceeds from (repayment of) borrowings and bonds		30,909		(12,330)				28,640						18,439				13,624
Dividends paid		(22,460)		-				(37,841)						(22,460)				(37,841)
Other financing activities items		(51)		(1,093)				(38)						(1,177)				(977)
Net cash generated from (used in) financing activities		8,398		(13,423)				(9,239)						(5,198)				(25,194)
Foreign currency exchange effect		(2,560)		2,187				6,443						6,434				6,478
Net increase (decrease) in cash and cash equivalents		5,538		(8,932)				3,462						4,427				5,033
Cash and cash equivalents at the beginning of period		66,173		75,105				59,351						67,284				58,040
Cash and cash equivalents at the end of period		71,711		66,173				62,813						71,711				63,073
Cash and cash equivalents in the consolidated balance sheet		71,711		66,173				62,812						71,711				62,812
Cash and cash equivalents included in disposal groups held for sale		-		-				1						-				261

 

[1] All financial information presented in this press release is unaudited, consolidated and prepared in accordance with Taiwan-IFRS (International Financial Reporting Standards as endorsed for use in the R.O.C.).  Such financial information is generated internally by us and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by our independent auditors, to which we subject our year-end audited consolidated financial statements, and may vary materially from the year-end audited consolidated financial information for the same period.  Any evaluation of the financial information presented in this press release should also take into account our published year-end audited consolidated financial statements and the notes to those statements.  In addition, the financial information presented is not necessarily indicative of our results of operations for any future period. [2] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items. [3] Capital expenditure excludes building construction costs. [4] Short-term borrowings include short-term loans and bills payable.

 

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 was ASX's revenue growth in Q3 2024?

ASX reported revenue growth of 3.9% year-over-year and 14.2% quarter-over-quarter, reaching NT$160,105 million in Q3 2024.

What was ASX's earnings per share in Q3 2024?

ASX reported basic earnings per share of NT$2.24 (US$0.138 per ADS) and diluted earnings per share of NT$2.17 (US$0.134 per ADS) in Q3 2024.

How did ASX's operating margin perform in Q3 2024?

ASX's operating margin improved to 7.2% in Q3 2024, compared to 6.4% in Q2 2024.

What were ASX's capital expenditures in Q3 2024?

ASX's capital expenditures totaled US$603 million in Q3 2024, with US$312 million used in packaging operations and US$274 million in testing operations.