Financial Data and Key Metrics Changes - For Q1 2024, the company recorded fully diluted EPS of $1.28 and basic EPS of $1.32, with consolidated net revenues declining 17% sequentially but increasing 1% year-over-year [5][8] - Gross profit was $20.9 billion with a gross margin of 15.7%, which declined by 0.3 percentage points sequentially but increased by 0.9 percentage points year-over-year [5][6] - Operating profit was $7.5 billion, down $4.3 billion sequentially and down $0.2 billion year-over-year, with an operating margin decline of 1.7 percentage points sequentially and 0.2 percentage points year-over-year [7][8] Business Line Data and Key Metrics Changes - ATM business revenues were $73.9 billion, down $8.1 billion sequentially (10% decline) but up $0.6 billion year-over-year (1% increase) [9][10] - EMS revenues were $59.4 billion, declining $19.8 billion or 25% sequentially but improving $1.6 billion or 3% year-over-year [15][16] - The gross margin for the ATM business was 21%, down 2.4 percentage points sequentially but up 0.9 percentage points year-over-year [10][12] Market Data and Key Metrics Changes - The overall demand environment for services fell on a sequential basis due to seasonality, with higher and leading-edge services performing better than legacy services [4] - The NT dollar appreciated 2% against the U.S. dollar sequentially during Q1, impacting gross and operating margins negatively by 0.55 percentage points [8][9] - The company expects a slightly improved demand environment for Q2 2024, with ATM revenue projected to grow by mid-single digits quarter-over-quarter [22] Company Strategy and Development Direction - The company aims to double leading-edge advanced packaging revenues in the current year, tracking ahead of target [15] - There is a focus on increasing investments in R&D and expanding overseas operations, with a 10% increase in CapEx planned for the year [29][42] - The company is monitoring the potential for establishing a facility in the U.S. but currently does not see it as economically viable [52][53] Management's Comments on Operating Environment and Future Outlook - Management believes that most sectors are bottoming out, with expectations for gradual recovery in the second half of the year [25][34] - The company anticipates that the increase in electricity rates will negatively impact gross margins by approximately 0.8 percentage points in Q2 [21][58] - Despite challenges, management remains confident in reaching structural gross margin targets of 25% to 30% for the second half of the year [58][60] Other Important Information - The company reported cash, cash equivalents, and current financial assets of $83.5 billion, increasing by $11.5 billion [18] - Total interest-bearing debt increased slightly to $195.3 billion, primarily due to currency fluctuations [18] - The company is seeing increasing adoption of AI-related packaging services, which are expected to drive future growth [19][20] Q&A Session Summary Question: Overall end demand outlook and automotive sector - Management sees most sectors bottoming out in Q2, with automotive still expected to grow despite some softness [25][27] Question: Advanced packaging growth and long-term view - Strong growth momentum is expected in AI-related packaging and testing, with a 10% increase in CapEx focused on this area [29][30] Question: Utilization rates and pricing changes - Utilization rates are expected to improve above 70% in the second half, with overall pricing remaining resilient despite some pressure on legacy products [70][72] Question: U.S. expansion plans and SiP business growth - The company is monitoring the U.S. market for potential expansion but does not see immediate plans, while SiP business growth is expected to resume next year [56][52]

First Quarter 2024 Earnings Release ASE Technology Holding 25 April, 2024 Safe Harbor Notice This presentation contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements a ...

Core Insights - ASE Technology Holding Co., Ltd. reported unaudited net revenues of NT$132,803 million for Q1 2024, representing a year-over-year increase of 1.5% but a sequential decrease of 17.3% [1] - The net income attributable to shareholders for the quarter was NT$5,682 million, down from NT$5,817 million in Q1 2023 and NT$9,392 million in Q4 2023 [1][3] - Basic earnings per share for Q1 2024 were NT$1.32 (US$0.084 per ADS), compared to NT$1.36 in Q1 2023 and NT$2.18 in Q4 2023 [1][3] Financial Performance - Net revenues from packaging operations, testing operations, EMS operations, and others accounted for approximately 45%, 9%, 45%, and 1% of total net revenues, respectively [2] - Cost of revenues for the quarter was NT$111,935 million, down from NT$134,820 million in Q4 2023 [2] - Gross margin decreased by 0.3 percentage points to 15.7% in Q1 2024 from 16.0% in Q4 2023, while operating margin was 5.7% compared to 7.4% in Q4 2023 [2] ATM and EMS Operations - In ATM operations, net revenues were NT$73,908 million, up by 0.8% year-over-year but down by 9.9% sequentially [4] - For EMS operations, net revenues were NT$59,365 million, reflecting a year-over-year increase of 2.8% but a sequential decrease of 25.0% [5] - Gross margin for ATM operations decreased to 21.0% in Q1 2024 from 23.4% in Q4 2023, while EMS operations saw an increase in gross margin to 9.3% from 8.4% in Q4 2023 [4][5] Customer Concentration - The five largest customers accounted for approximately 46% of total net revenues in Q1 2024, up from 44% in Q4 2023 [7] - In EMS, the five largest customers represented about 67% of total net revenues in Q1 2024, down from 72% in Q4 2023 [8] Capital Expenditures and Liquidity - Capital expenditures in Q1 2024 totaled US$228 million, with US$109 million allocated to packaging operations and US$97 million to testing operations [6] - The current ratio was 1.19 and the net debt to equity ratio was 0.36 as of March 31, 2024 [6]

Investors interested in Electronics - Semiconductors stocks are likely familiar with ASE Technology Hldg (ASX) and Lattice Semiconductor (LSCC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scor ...

TAIPEI, April 8, 2024 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (NYSE: ASX, TAIEX: 3711, "ASEH" or the "Company"), announces that it has filed its annual report on Form 20-F for the year ended December 31, 2023 with the U.S. Securities and Exchange Commission.  The 2023 20-F is available on ASEH's website at www.aseglobal.com and on the website of the U.S. Securities and Exchange Commission at www.sec.gov.  Hard copies of the audited financial statements included in the 2023 Form 20-F are available t ...

Financial Performance - The company recorded net foreign exchange gains of NT$998.1 million (US$32.6 million) in 2023, following net losses of NT$2,459.5 million in 2022 and gains of NT$1,395.1 million in 2021[89]. - Impairment charges for investments under the equity method were NT$61.2 million in 2022 and NT$146.6 million (US$4.8 million) in 2023, with no charges recorded in 2021[92][94]. - The company recognized total impairment charges of NT$126.8 million in 2021, NT$388.8 million in 2022, and NT$146.6 million (US$4.8 million) in 2023, primarily related to property, plant, and equipment[94]. - Future dividends may be affected by the company's financial condition, cash balances, and other relevant factors, with no assurance of continued cash dividends[141]. Environmental and Sustainability Initiatives - The company has established a wastewater reclamation recycling system and implemented strategies to reduce, reuse, and recycle water to address climate change risks[114]. - The company plans to negotiate renewable energy procurement through the Taiwan Renewable Energy Platform, focusing on solar and wind power[115]. - The company is subject to various laws and regulations regarding environmental compliance, which may lead to additional costs and impact financial performance[109]. Operational Risks - In 2023, one subsidiary failed to meet financial covenants under its loan agreement but obtained a waiver, with compliance restored by December 31, 2023[100]. - The company has experienced interruptions to its production schedule due to power outages caused by earthquakes, highlighting vulnerability to natural disasters[126]. - The company faces risks related to public health epidemics, natural disasters, and other disruptive events that could materially affect its business operations[119]. - The company has not experienced direct impacts from droughts, but future droughts could disrupt operations reliant on freshwater[129]. Market and Investment Risks - Fluctuations in exchange rates, particularly between the U.S. dollar and Japanese yen against the NT dollar, could significantly impact the company's financial condition[89]. - The trading price of the company's ADSs may be affected by the volatility of the R.O.C. securities market, which is smaller and more volatile than U.S. and European markets[140]. - Changes in exchange controls may adversely affect the value of investments in ADSs[154]. - Future sales of Common Shares or ADSs by major shareholders could depress market prices[158]. - The company cannot predict the effect of future sales of Common Shares or ADSs on market prices[158]. Corporate Governance and Shareholder Rights - The company’s internal control over financial reporting was deemed effective as of December 31, 2023, excluding the newly acquired HCC Group[98]. - As of December 31, 2023, approximately 217,205 thousand share options and restricted stocks were outstanding[146]. - The company may experience dilution if it issues stock bonuses, share options, or restricted stocks to employees[145]. - Holders of ADSs will not have the same voting rights as shareholders, which may affect the value of their ADSs[151]. - Holders of ADSs may experience dilution due to limitations on participation in rights offerings[152]. - The ability to deposit Common Shares into the ADS facility is restricted by R.O.C. law, potentially affecting liquidity and pricing[146]. - The company is subject to scrutiny and potential negative publicity related to short selling practices[160]. - Allegations against the company, whether true or false, could significantly impact the value of ADSs[161]. Strategic Expansion - The company is conducting evaluations for potential overseas plant expansions in Southeast Asia, Northeast Asia, Europe, and the Americas to mitigate regional political risks[125]. - The R.O.C. government currently restricts certain types of investments in the P.R.C., which may adversely affect the company's growth prospects and profitability[124]. - The company is investing in research and development of silicon photonics technology and Co-Packaged Optics, which are expected to be pivotal for the next generation of advanced packaging[120].

ASE Technology Holdings Co., Ltd. (NYSE:ASX) Q4 2023 Results Conference Call February 1, 2024 2:00 AM ET Company Participants Ken Hsiang - Head of Investor Relations Joseph Tung - Chief Financial Officer Tien Wu - COO Conference Call Participants Gokul Hariharan - JPMorgan Laura Chen - Citi Charlie Chan - Morgan Stanley Bruce Lu - Goldman Sachs Randy Abrams - UBS Szeho Ng - China Renaissance Dylan Liu - Morgan Stanley Ken Hsiang Hello. I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holdi ...

Core Insights - ASE Technology Holding Co., Ltd. reported a decline in net revenues for 4Q23, totaling NT$160,581 million, down 9.5% year-over-year but up 4.2% sequentially [1] - The company's net income attributable to shareholders for the quarter was NT$9,392 million, a decrease from NT$15,730 million in 4Q22 but an increase from NT$8,776 million in 3Q23 [1] - Basic earnings per share for 4Q23 were NT$2.18, compared to NT$3.77 for 4Q22 and NT$2.04 for 3Q23 [1] Financial Performance - For the full year of 2023, ASE reported unaudited net revenues of NT$581,914 million, down 13% from 2022 [2] - The net income attributable to shareholders for 2023 was NT$31,725 million, significantly lower than NT$62,090 million in 2022 [2] - Basic earnings per share for the full year of 2023 were NT$7.39, down from NT$14.53 in 2022 [2][7] Operational Highlights - In 4Q23, net revenues from packaging operations, testing operations, EMS operations, and others accounted for approximately 41%, 9%, 49%, and 1% of total net revenues, respectively [3] - The gross margin for 4Q23 decreased to 16.0% from 16.2% in 3Q23, while the operating margin remained stable at 7.4% [3] - For the full year of 2023, the gross margin decreased to 15.8% from 20.1% in 2022, and the operating margin decreased to 6.9% from 12.0% [7] Segment Performance - In 4Q23, net revenues from ATM operations were NT$82,004 million, down 13.1% year-over-year and down 2.0% sequentially [4] - EMS operations generated net revenues of NT$79,182 million in 4Q23, down 6% year-over-year but up 12% sequentially [5] - For the full year of 2023, ATM operations had net revenues of NT$315,115 million, down from NT$372,176 million in 2022 [6][8] Cost Structure - The cost of revenues for 4Q23 was NT$134,820 million, up from NT$129,251 million in 3Q23 [3] - Raw material costs represented 55% of total net revenues for 4Q23, while labor costs accounted for 10% [3] - For the full year of 2023, raw material costs totaled NT$310,179 million, representing 53% of total net revenues [6] Customer Concentration - In 4Q23, the five largest customers accounted for approximately 44% of total net revenues, an increase from 42% in 3Q23 [11] - The top 10 customers contributed 58% of total net revenues in 4Q23, compared to 57% in 3Q23 [11][12]

Price-to-earnings (P/E), given its inherent simplicity, is the most commonly used metric in the value-investing world. It is preferred by many investors while handpicking stocks trading at a bargain. However, even this straightforward, broadly used valuation metric has a few downsides.While P/E enjoys great popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA gives the true picture of a company’s valuation and ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...