Nanya Technology's Q2 Profit Soars, Gross Margin Beats TSMC

Nanya Technology (2408) announced its second-quarter financial results, revealing a remarkable gross profit margin of 79.5%. This figure significantly surpasses the 65.5% to 67.5% guidance provided by TSMC for the same period and represents an 11.6 percentage point increase from the previous quarter.

The surge in profitability is attributed to a substantial rise in DRAM average selling prices, which increased by over 60% compared to the first quarter. Despite sales volume remaining flat, the enhanced pricing power propelled Nanya Technology's net profit to NT$50.192 billion for the quarter, a 92.6% jump from the prior quarter. The company also achieved profitability compared to the same period last year, with earnings per share at NT$14.66.

Overall, Nanya Technology's consolidated revenue for the second quarter reached NT$82.549 billion, marking a 68.2% increase from the first quarter and a staggering 684.2% year-on-year growth. The operating profit margin also saw significant improvement, reaching 73.7%, up 12.4 percentage points from the previous quarter and a substantial recovery from -42.8% in the same period last year.

For the first half of the year, Nanya Technology reported consolidated revenue of NT$131.636 billion, a 643.12% increase year-on-year. The net profit for the period was NT$76.25 billion, turning profitable from the previous year, with earnings per share of NT$23.38. The company highlighted that products for AI infrastructure and servers now constitute over 20% of its revenue. Nanya Technology continues to supply a diverse range of products, including DDR5, LPDDR5/5X, DDR4, LPDDR4/4X, DDR3, and LPDDR3, to meet varied market demands.