Memory module manufacturer ADATA has reported a stellar first quarter in 2024, achieving a gross profit margin of 26.43% and an operating profit of NT$1.547 billion, marking the highest levels in eleven quarters. This performance represents a significant year-over-year increase, with gross profit margins up nearly 15 percentage points compared to Q1 2023 and operating profits increasing by 36 times over the same period. The surge in profit is largely attributed to ADATA’s advantage in low-price inventory, which has positioned it well amidst a global increase in demand for memory components.
The company’s after-tax net profit also saw an impressive increase, growing 17 times compared to Q1 2023, with earnings per share reaching NT$3.62. These gains are reflective of a broader industry trend, driven by the burgeoning demand for memory in various tech sectors, particularly in applications related to artificial intelligence. ADATA remains optimistic about its full-year performance, anticipating continued growth and profit margin expansion as the demand for memory outstrips supply.
Amidst these financial achievements, ADATA has not overlooked its social responsibilities. Following a devastating earthquake in Hualien, the company, led by Chairman Chen Libai, has been proactive in community recovery efforts, raising funds and resources to aid in the region’s reconstruction.
Looking forward, ADATA plans to introduce AI-related products in the latter half of the year, aiming to capitalize on the anticipated increase in demand and secure its foothold as a leader in the memory market.
