Primax Reports 4Q24 Financial Results and Business Outlook
Primax Electronics (TWSE: 4915) today held an earnings conference for the fourth quarter and fiscal year ended December 31, 2024.
2024 Financial Highlights
- Revenue was NT$58.24 billion, down 3.7% year-over-year (YoY)
- Gross margin was 17%, improved by 1.1 ppt year-over-year (YoY)
- Operating margin was 4.7%, up 0.2 ppt YoY
- Net income attributable to shareholders of the parent company was NT$2.56 billion, up 2.9% YoY
- Earnings per share (EPS) was NT$5.61
Primax’s 4Q24 consolidated revenue was NT$13.22 billion, down 5.7% YoY. Thanks to product mix improvement, 4Q24 gross margin was 17.4%, up 1.3 ppt YoY, and operating margin was 3.9%, up 0.1 ppt YoY. Net income attributable to shareholders of the parent company was NT$475 million, which translates to an EPS of NT$1.03 for 4Q24.
For 4Q24 product breakdown, Information Products accounted for 54% of total revenue, followed by Smart Lifestyle products (19%) and Auto/AIoT related products (26%). Primax has been optimizing its product mix, as Auto/AIoT contribution steadily increased year by year, rising from 10% in 2020 to 27% in 2024, highlighting Primax’s focus on high-value-added innovations.
YY Hsiao, General Manager and CFO of Primax, stated, “Due to Primax's strategic transition, 2024 revenue reported a slight YoY decline; however, net profit reported mild YoY growth. Thanks to margin improvement on a YoY basis, 2024 EPS reached the second-highest level in company history. Gaming products performed well among the Information Products segment, while the Auto/AIoT segment benefited from new project contributions, strengthening overall profitability. However, the Smart Lifestyle segment was adversely impacted by soft consumer demand.”
Looking ahead to 2025, Primax will strengthen risk management and enhance operational efficiency in response to geopolitical uncertainties, maintaining resilience and adapting to market changes. For global capacity allocation, Primax will accelerate expansion by increasing investment in its Thailand plant, in addition to its existing production sites in China and the Czech Republic. The company will continue investing in automation to enhance efficiency and flexibility, enabling it to meet diverse customer needs. Meanwhile, Primax leverages group synergies through its X-IN-1 Sensory Fusion technology and drives the adoption of Edge AI in audiovisual technology, including public safety, AIoT (B2B) visual solutions, AI video conferencing, and automotive products. Furthermore, new product investments over the past few years are expected to inject new growth drivers, contributing to solid operational results.