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Yageo Surpasses Quarterly Revenue Expectations with AI-Driven Growth

Consolidated revenue hits NT$31.419 billion in Q2, fueled by rising capacity utilization
Taiwan
y 2327.TW Mid and Small Cap 2000
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Yageo Corporation, Taiwan’s foremost passive component manufacturer, reported a robust performance for June and the second quarter of 2024. The company’s consolidated revenue for June reached NT$10.004 billion, maintaining the 10 billion mark for the fourth consecutive month. This steady performance contributed to a new single-quarter high of NT$31.419 billion in Q2, exceeding initial growth forecasts.

Driven by increased capacity utilization, Yageo’s quarterly revenue grew by 10.2%, surpassing the company’s original forecast of 1% to 3% growth, and marking a significant 17.3% year-over-year increase. This momentum is attributed to the booming demand in AI applications, which has helped balance customer inventories and optimize capacity usage.

In the first quarter, Yageo’s net profit per share stood at NT$11.02, marking the third consecutive quarter of earning more than one equity share per quarter. With Q2’s performance exceeding expectations, analysts are optimistic about continued profitability and growth in gross profit margins.

Despite a month-over-month decline of 6.6% in June’s revenue due to seasonal factors, the annual growth rate remained strong at 14%. Looking ahead, Yageo is poised to further capitalize on AI market trends, aiming to increase standard product capacity utilization from 50% to 65%, and niche products from 70% to 75%.

Chairman Chen Taiming expressed confidence in Yageo’s prospects for the second half of the year, citing healthy inventory levels and sustained demand for AI solutions. Yageo’s comprehensive product line, including MLCCs, chip resistors, and inductors, positions the company well to meet diverse customer requirements for advanced electronic components.

 

 

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