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Phison Shatters Records with Stellar Q4 Earnings, Optimistic Amid Rising Memory Prices

Phison capitalizes on market dynamics, posting a monumental quarterly net profit increase and showcasing robust inventory strategy
p 8299.TWO Mid and Small Cap 2000
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Phison Electronics, a pivotal player in the memory control chip and storage solutions sector, revealed its impressive fourth-quarter financial results, marking a period of significant profitability and operational excellence. The company’s after-tax net profit soared to 2.084 billion yuan, achieving a monumental 142.9% increase from the previous quarter and an extraordinary 860.4% surge year-over-year, resulting in a per-share net profit of 10.39 yuan – the highest in seven quarters.

Despite a yearly net profit decline of 32.9%, the company’s annual performance reflected resilience with a total after-tax net profit of 3.624 billion yuan and an 18.48 yuan earnings per share. The fourth quarter showed a robust revenue of 15.748 billion yuan, climbing 27.1% from the preceding quarter and 28.1% year-over-year, with a gross profit margin reaching 36%.

CEO Pan Jiancheng highlighted the quarter’s record-high gross profit margin and the substantial net profit, attributing it to effective inventory management and favorable market conditions. Phison’s strategic inventory levels stood at 24.41 billion yuan, with an average turnover of 255 days, indicating a well-stocked supply chain poised for future market upswings.

The company’s optimistic outlook is further bolstered by its prudent shipment controls and anticipation of continued price recoveries in the memory sector. Phison’s confidence in its strategic positioning is evident in its dividend announcement, proposing a generous 8.84 yuan per share payout, reflecting its strong financial health and commitment to shareholder value. This financial fortitude underscores Phison’s adept navigation through the fluctuating memory market, setting a solid foundation for sustained growth and market leadership.

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