Chicony Achieves H1 EPS of NT$5.06, Edge AI and Robotics Applications Boost Long-Term Outlook

Chicony Electronics (2385-TW), a computer peripherals manufacturer, released its Q2 2024 financial results today (5th). Quarterly post-tax net profit reached NT$2.241 billion, up 54% quarter-on-quarter and 4% year-on-year, with earnings per share (EPS) at NT$3.06—the highest quarterly profit in nearly six quarters. Cumulative H1 net profit totaled NT$3.697 billion, with EPS reaching NT$5.06. Looking ahead, Chicony continues to expand its Edge AI imaging solutions and has entered the robotics market, positioning itself for physical AI business opportunities.

Chicony’s Q2 revenue was NT$22.39 billion, down 2.1% quarter-on-quarter and 8.6% year-on-year. Gross margin was 13.6%, down 2.5 percentage points QoQ and 4.1 points YoY. Operating profit was NT$550 million, down 68.2% QoQ and 71.3% YoY, with operating margin at 2.5%, down 5.0 and 5.3 points respectively. However, post-tax net profit rose to NT$2.24 billion (up 53.9% QoQ, 4.1% YoY), with EPS at NT$3.06.

H1 cumulative revenue was NT$45.26 billion, down 5.3% YoY. Gross margin was 14.9% (down 3.2 points YoY), operating profit NT$2.28 billion (down 44.0% YoY), operating margin 5.0% (down 3.5 points YoY), post-tax net profit NT$3.70 billion (down 1.3% YoY), and EPS NT$5.06.

Core operations were impacted by rising memory prices suppressing consumer PC demand. However, Chicony benefited from a surge in Taiwan stocks, recognizing approximately NT$2.16 billion in investment gains and other non-operating income in Q2, significantly boosting overall profitability.

By product line, commercial market demand outperformed consumer markets. Smart video conferencing systems showed the strongest growth, with both Q2 and H1 revenues up over 20% YoY. Keyboard products were led by gaming keyboards, achieving high single-digit YoY revenue growth in Q2. LED backlight module adoption in notebook keyboards remained above 50%, highlighting high-end commercial models as key customer shipments.

To counter rising material costs, Chicony’s 2024 price adjustment plan began reflecting in Q2. As customer inventory digestion and contract transitions progress, more products are expected to adopt new pricing in Q3. Analysts forecast Q3 revenue to be flat or slightly up from Q2, with Chicony prioritizing profit stability and operational resilience.

In production and Edge AI development, Chicony continues stable shipments of high-end smart security and video conferencing systems to top-tier U.S. and European manufacturers, successfully securing customer orders shifted to its Thailand plant. By integrating vision-language models and sensor fusion technology, Chicony is extending its Edge AI imaging solutions into smart security, fleet management, and smart wearables. Recently, it partnered with a U.S. startup to enter the robotics market, enabling precise visual recognition and force control for robots, actively capturing physical AI business opportunities.