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Nanya’s Revenue Rises in January Despite Quarterly Losses

Memory manufacturer Nanya posts 35.95% year-over-year revenue growth amid challenging market conditions
Taiwan
n 2408.TW Mid and Small Cap 2000 Tech 350 Semicon 75
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Nanya Technology Corporation, a key player in the memory sector, has reported a notable increase in its January 2024 revenue, achieving NT$3.06 billion, which marks a 35.95% rise from the same period in 2023, despite a 3.2% decline from December 2023. This performance underscores the company’s resilience in a fluctuating market, even as it faces challenges reflected in its recent quarterly financial results.

The company’s financial disclosure for the fourth quarter of 2023 revealed a gross operating loss of NT$1.188 billion, translating to a gross profit margin of -13.6%. This figure, however, represents an 11.6 percentage point improvement over the third quarter, illustrating a positive trajectory in mitigating losses. The net operating loss stood at NT$4.05 billion, with a -46.5% operating profit margin, showing a 9.6 percentage point improvement from the previous quarter. Despite these operational challenges, Nanya reported a non-operating income of NT$521 million. After taxes, the net loss for the period was NT$2.488 billion, with a net profit margin of -28.6% and a loss per share of NT$0.8.

For the year 2023, Nanya’s operating income totaled NT$29.892 billion, with a net loss after tax of NT$7.448 billion and a loss per share of NT$2.4. These figures reflect the ongoing pressures faced by the memory industry, including price volatility and demand fluctuations.

However, industry analysts remain optimistic about the DRAM market’s prospects. Predictions suggest a strong uptick in DRAM quotations in the first quarter of 2024, with expectations of at least a double-digit percentage increase from the previous quarter. This optimism is based on a forecasted bullish trend for the memory market in 2024, driven by depleted inventories, reduced production from suppliers, a recovery in consumer electronics demand, and a shift in capacity allocation favoring AI applications. These factors are expected to sustain a bullish pattern for DRAM prices throughout the year, potentially signaling a turnaround for manufacturers like Nanya amidst challenging market dynamics.

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