Yageo reported impressive second-quarter financial results, achieving “double rate and double growth.” The company’s single-quarter gross profit margin reached 35.1%, the highest in six quarters, while after-tax net profit soared to NT$5.453 billion, an 18.3% increase from the previous quarter. This resulted in a net profit per share of NT$13.02, marking the highest in the past 11 quarters. For the first half of the year, Yageo’s net profit exceeded NT$10 billion, with a profit per share of NT$24.04, a six-year high.
Consolidated revenue for Q2 was NT$31.418 billion, reflecting a 10.2% quarterly increase and a 17.4% year-over-year rise. The operating profit margin reached 20.6%, up by 3.2 percentage points from the previous quarter and 1.7 percentage points year-over-year. Yageo attributed the better-than-expected revenue to strong AI-related momentum and a rebound in consumer electronics demand.
Despite the robust overall performance, Yageo’s multilayer ceramic capacitor (MLCC) revenue share dropped from 20% to 18%, affected by slower demand in certain industries. Meanwhile, magnetic components, tantalum capacitors, chip resistors, and sensors maintained stable contributions to the revenue mix.
Regionally, demand grew in both the United States and mainland China. Greater China accounted for 25% of revenue, Asia outside mainland China 29%, the United States 26%, and Europe 20%, the only region experiencing a decline in revenue share.
In the first half of the year, Yageo’s consolidated revenue was NT$59.923 billion, a 13.4% annual increase. The gross profit margin was 34.5%, and the operating profit margin stood at 19.1%, with after-tax net income reaching NT$10.062 billion, a 28.15% increase year-over-year.
General Manager Wang Danru emphasized that the passive component industry has bottomed out and entered a recovery phase, with AI momentum exceeding expectations. Wang projected continued growth in Q3, with revenue, gross profit margin, and operating profit margin all expected to rise. Capacity utilization rates for standard and special products are also anticipated to increase.
Looking ahead, Yageo remains optimistic about the business performance and prospects of AI applications, despite uncertainties like global inflation and geopolitical issues. The company’s order-to-bill ratio indicates an expanding economy, and client inventory levels have improved. Yageo’s stock price rose by NT$10, closing at NT$730.
AI and computing fields drove nearly 80% of Q2 revenue, with strong performance across consumer products, SSDs, and servers. While automotive and industrial applications faced delays, demand remained robust, particularly from Europe, with potential growth resumption expected next year.
