Nano Electronics And Micro System T reported Q3 2024 results characterized by a meaningful top-line contraction, with revenue of 142.085 million TWD, down 28.66% year-over-year but up 7.86% quarter-over-quarter. Despite the revenue weakness, the company sustained solid profitability metrics: gross margin of 40.74%, operating margin of 19.01%, and net margin of 16.74%. EBITDA stood at 30.42 million TWD, yielding an EBITDA margin of 21.41%, underscoring the business’s ability to scale earnings even as demand cyclicality weighs on absolute sales. Net income reached 23.78 million TWD, with diluted EPS of 0.81-0.82 TWD, reflecting disciplined cost control and favorable product mix.
The balance sheet presents a robust liquidity position and a conservative leverage profile. Cash and cash equivalents totaled 465.47 million TWD, with total cash and short-term investments around 470.92 million TWD. The company carries long-term debt of 144.31 million TWD and short-term debt of 17.62 million TWD (total debt 161.93 million TWD), resulting in a net debt position of approximately -303.55 million TWD. Free cash flow was strong at 45.34 million TWD, with net cash provided by operating activities of 45.68 million TWD. The company also paid a dividend of 28.86 million TWD during the period, illustrating a commitment to capital returns while preserving liquidity.
From an investment angle, the backdrop remains a mix of near-term softness in top-line growth and mid- to long-term margin resilience supported by a healthy cash-flow machine and a low-leverage balance sheet. The key questions for investors are the durability of the margins through an ongoing cyclicality in the semiconductor/PCB equipment cycle and the pace at which revenue can recover as capex cycles normalize.