Core Business Stable, Non-Operating Gains Boost Blue Sky's Q2 Net Profit Up 4x to Record EPS of NT$3.44

Blue Sky (2362-TW) announced its second-quarter financial results today (5th), benefiting from steady core business growth and significant non-operating gains. The company posted a net profit of NT$1.989 billion, a quarter-on-quarter increase of 467%, with earnings per share (EPS) at NT$3.44—turning profitable compared to the same period last year and setting a new historical quarterly high. For the first half of the year, net profit reached NT$2.34 billion, a year-on-year surge of 118 times, with EPS at NT$4.05.

Blue Sky's Q2 revenue was NT$6.53 billion, up 32.14% quarter-on-quarter and 16.45% year-on-year. Gross margin was 17.17%, down 3.71 percentage points quarter-on-quarter and 4.45 percentage points year-on-year. Operating profit was NT$342 million, up 1.07% quarter-on-quarter but down 39.76% year-on-year. Operating margin was 5.24%, down 1.61 percentage points quarter-on-quarter and 4.89 percentage points year-on-year.

For the first half, revenue totaled NT$11.471 billion, up 17.64% year-on-year. Gross margin was 18.77%, down 5.60 percentage points year-on-year. Operating profit was NT$680 million, down 32.93% year-on-year, with an operating margin of 5.93%, down 4.47 percentage points year-on-year. Net profit was NT$2.34 billion, up 118 times year-on-year, with EPS at NT$4.05.

Blue Sky noted that after the first-quarter提前 stocking effect, global notebook demand softened in Q2. However, sales in China and Europe doubled, driving逆势 growth. The company shipped 320,000 units in Q2, up 13% quarter-on-quarter, with revenue reaching NT$5.8 billion, up 39% quarter-on-quarter.

For the first half, cumulative notebook shipments reached 612,000 units, with revenue of NT$10 billion, up 21% year-on-year. Blue Ocean model shipments accounted for 50% of total. Despite high memory and component prices eroding margins, flexible supply chain management and customization helped sustain sales momentum and performance.

Regarding its Chinese IT retail chain Ban Nao Hui, overall foot traffic in Q2 increased 20% quarter-on-quarter and 8% year-on-year, with weekend traffic up 24%. The recovery in foot traffic stabilized mall operations, with rental income maintaining a steady NT$1.5 billion in the first half.

Its 30%-owned department store, Quanta Plaza, continues to face challenges in China's retail sector, with first-half revenue down 8% year-on-year. However, effective cost control led to a net profit margin of 1.47%, and operating cash flow was positive at RMB 120 million. Blue Sky recognized NT$35 million in investment gains from this asset.