ASE Technology Holding, a leader in semiconductor packaging and testing, disclosed its financial outcomes for the first quarter of 2024 during an online press conference. The company reported revenues of NT$132.803 billion, marking a 17% decline from the previous quarter but a modest year-on-year increase of 1%. The gross profit margin stood at 15.7%, slightly down from the fourth quarter of 2023 but up by 0.9 percentage points from the first quarter of the previous year.
Net income after tax significantly dropped by 40% from the fourth quarter of 2023 to NT$5.682 billion, reflecting a 2% decrease from the first quarter of the previous year. The earnings per share (EPS) for the quarter were NT$1.32, hitting the lowest since the first quarter of 2020.
The company attributed the downturn to a low overall utilization rate impacted by the traditional off-season, forecasting 2024 to be a challenging year. Communication applications remained a major revenue driver, accounting for about 52% of the total, followed by computer-related applications at 18% and automotive, consumer electronics, and others at approximately 30%.
Joseph Tung, CFO of ASE Technology Holding, provided insights into the company’s future outlook. He projected a mid-single-digit increase in packaging, testing, and materials (ATM) revenue for the second quarter of 2024, with a slight improvement in gross profit margins. However, revenues from Electronics Manufacturing Services (EMS) are expected to remain stable, with a minor decrease in operating profit margins.
Looking ahead to the latter half of 2024, Joseph Tung remains optimistic. He anticipates a recovery across all applications, particularly highlighting AI and high-performance computing (HPC) as areas of strong growth. The utilization rate for packaging and testing is expected to climb above 60% in the second quarter, with a significant rebound in the latter half, potentially boosting the gross profit margin back to between 24% and 30%.
ASE Technology Holding is positioning itself to navigate through the current industry lows with strategic adjustments and operational optimizations, aiming for a robust recovery in the coming months.
