Auras Technology Doubles First-Half Profit, EPS Reaches NT$44.54, Expects Sequential Growth in Second Half

Auras Technology (3017-TW), a thermal solutions manufacturer, held its earnings conference today (12th), announcing that its consolidated net profit for the first half of 2024 reached NT$17.483 billion, more than doubling year-on-year, with earnings per share (EPS) at NT$44.54. Auras stated that with GPU products set to ramp up in volume and ASIC liquid cooling solutions expected to significantly contribute in the fourth quarter, operations will continue to improve, with the second half showing sequential quarterly growth.

Auras noted that third-quarter growth momentum will come from additional GPU customer orders and increased ASIC customer demand. August and September are showing stronger performance than July, with GPU products expected to begin volume production by the end of the third quarter. The ASIC liquid cooling project is anticipated to enter mass production in the fourth quarter, significantly boosting revenue. As a result, the company expects second-half performance to surpass the first half.

In terms of production capacity, Auras currently has a monthly production capacity of approximately 1 million liquid cold plates and 7,000 Rack Manifolds, sufficient to support 3,000 to 4,000 server racks. To meet strong customer demand, the company plans to expand liquid cooling-related production capacity by 50% next year.

Regarding capital expenditures, Auras maintains its 2024 budget at NT$15 billion and expects to increase spending further in 2025 to accommodate future demand growth.

For the second quarter, Auras reported revenue of NT$49.121 billion, up 0.17% quarter-on-quarter and 65.98% year-on-year. Gross margin reached 32.57%, up 2.8 percentage points quarter-on-quarter and 8.16 points year-on-year. Operating margin was 27.44%, up 2.93 points QoQ and 10.23 points YoY. Net profit was NT$9.567 billion, up 20.86% QoQ and 139% YoY, with EPS at NT$24.37.

Cumulative first-half revenue reached NT$98.159 billion, up 85.46% year-on-year. Gross margin was 31.17%, up 6.13 points YoY. Operating margin was 25.97%, up 8.11 points YoY. Net profit was NT$17.483 billion, up 142% YoY, with EPS at NT$44.54.

By product mix, thermal and chassis products generated NT$81.88 billion in revenue, up 104% YoY, accounting for 83.4% of total revenue, with thermal products being the primary growth driver. By application, server-related revenue reached NT$64.919 billion, up 153% YoY, representing 66.1% of total revenue, driving margin improvement.