Kioxia Earnings: Q2 Net Profit Up 17.7%, H1 Profit Hits Record High EPS 8.48

Passive component manufacturer Kioxia (2327-TW) held an earnings call and announced its second-quarter financial report on June 29th. The after-tax net profit was 9.418 billion yuan, up 17.7% quarter-on-quarter and 88.5% year-on-year, with an EPS of 4.59 yuan. The first-half after-tax net profit was 17.419 billion yuan, setting a new record for the same period, up 65.5% year-on-year, with an EPS of 8.48 yuan.

Kioxia's second-quarter revenue was 44.456 billion yuan, up 16.5% quarter-on-quarter and 35.7% year-on-year, with a gross margin of 38.5%, up 0.4 percentage points quarter-on-quarter and 2.9 percentage points year-on-year. The operating profit margin was 26.4%, up 1.2 percentage points quarter-on-quarter and 4.9 percentage points year-on-year.

Kioxia stated that the second quarter saw an increase in AI-related demand, continuously driving the growth of multiple product categories. Notably, the sales of tantalum capacitors increased by 14.1% quarter-on-quarter and 44% year-on-year. The growth rates of MLCCs and resistors exceeded the overall average, with strong demand for both standard and specialty products. All major market regions also showed growth, with Asia performing particularly well.

Looking at the revenue share of each product in the quarter, tantalum capacitors accounted for 23.8%, magnetic components 23.5%, MLCCs 19.1%, resistors 14.3%, sensors 10.9%, and others 8.4%. In terms of applications, industrial applications accounted for 28.4%, computing 27.3%, automotive 15.9%, consumer electronics 12.2%, communications 12.2%, and aerospace/defense/medical 4%.

In terms of revenue share by region, China accounted for 27.3%, Asia excluding China 27.3%, the United States 27%, and Europe 18%. By sales channel, distributors accounted for 46.2%, OEMs 35.4%, and EMS 18.4%.

Kioxia's first-half revenue was 82.622 billion yuan, up 29.3% year-on-year, with a gross margin of 38.3%, up 2.7 percentage points year-on-year, and an operating profit margin of 25.9%, up 4.7 percentage points year-on-year. This was also driven by the strong momentum from AI-related application demand, with both standard and specialty products showing rapid growth.