Nanya Technology Shares Fourth Quarter 2024 Performance Insights and Future Outlook

Nanya Technology Corporation reports a tough finish to 2024 with significant declines in sales revenue and profits, but remains committed to sustainability efforts and plans for future investments.

Impressive sustainability efforts and recognition
Ramping up production of high-demand memory chips
Continued investments and plans for future growth

Nanya Technology’s Fourth Quarter Results: A Tough Finish to 2024

Nanya Technology Corporation just released its financial results for the fourth quarter of 2024, and let’s just say it wasn’t exactly a victory lap. The company reported a quarterly sales revenue of NT$ 6,575 million, which marks a significant dip of 19.2 percent compared to the previous quarter. Ouch! What’s behind this decline? Well, average selling prices (ASP) took a hit, dropping by low-teens percent, while bit shipments fell by high-single digit percent. It seems like the market is feeling the squeeze, and Nanya is no exception.

A Closer Look at the Numbers

The numbers paint a pretty stark picture. Nanya posted a gross loss of NT$ 695 million, resulting in a gross margin of -10.6 percent. That’s a hefty 13.8 percentage points drop from the previous quarter. And if that wasn’t enough, the operating loss was NT$ 2,812 million, with an operating margin of -42.8 percent, down by 12 percentage points. It’s clear that the company is grappling with some serious challenges.

On the brighter side, Nanya did report a non-operating income of NT$ 900 million. However, that wasn’t enough to offset the overall losses. The net loss for the quarter stood at NT$ 1,574 million, translating to a net margin of -23.9 percent. For those keeping score, earnings per share (EPS) came in at NT$ -0.51, based on a weighted average of 3,099 million outstanding shares.

2024: A Year to Forget?

Looking at the fiscal year as a whole, Nanya’s sales revenue reached NT$ 34,132 million, but the net loss ballooned to NT$ 5,083 million, resulting in an annual EPS of NT$ -1.64. The book value per share stood at NT$ 53.27 at the end of the year. It’s safe to say that 2024 wasn’t exactly a banner year for the company, and these unaudited numbers might leave investors feeling a bit apprehensive.

Future Plans and Investments

Now, what’s next for Nanya? The Board has approved a CAPEX budget for 2024 of up to NT$ 26 billion, but actual expenditures only hit NT$ 16.1 billion, with NT$ 9.9 billion pushed to 2025. Looking ahead, they’re eyeing a planned CAPEX of around NT$ 20 billion for 2025, pending Board approval.

Nanya is ramping up production of its 8 Gb DDR4 and 16 Gb DDR5 memory chips, utilizing the second generation of 10 nm-class process technology. They expect these chips to account for over 30 percent of total output by 2025. Plus, the company is keen to team up with strategic partners to tap into the booming demand for AI edge computing. Could this be the silver lining they need?

Sustainability Efforts Shine Through

In a world increasingly focused on sustainability, Nanya has managed to secure some impressive accolades for its commitment to eco-friendly practices. They’ve been included in the DJSI World Index for the fourth consecutive year, received their first MSCI ESG AA rating, and achieved Prime status from ISS ESG Rating for five years running. Additionally, they bagged the Taiwan Corporate Sustainability Award for the eighth consecutive year. It’s clear that while the financials may not be where they want them, Nanya is making strides in the sustainability arena.

As we look ahead, it will be interesting to see how Nanya navigates these challenges and opportunities. Will they bounce back in 2025, or will the struggles of 2024 linger? Only time will tell.

Nanya Technology Shares Fourth Quarter 2024 Performance Insights and Future Outlook

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