Qisda's operations in the second quarter showed improvement compared to the first quarter.

Qisda has a positive outlook for a gradual recovery in the second half of the year.

Qisda’s (TWSE: 2352) operations in the second quarter showed improvement compared to the first quarter, with a positive outlook for a gradual economic recovery in the second half of the year. Qisda announced its second-quarter financial report, revealing that revenue growth was observed across almost all major business groups. Notably, the profitability of the IT_Original business, IT_HVA business, and Medical business was impressive. This led to an increase in the gross margin and operating income margin, reaching 16.7% and 2.4%, respectively, indicating a sequential growth in operations.

Qisda held an online conference on 7th August to explain the second quarter fiscal 2024 operational results and the outlook. As the second half of the year ushers in the traditional peak season, the global economic is gradually improving. The display products for commercial market are expected to increase gradually. However, the broader economic environment remains subject to key indicators such as the U.S. presidential election and the timing of interest rate cuts.

Qisda's Chairman, Peter Chen, expressed optimism about the medical business, which has consistently maintained a scale of NT$6 billion per quarter for five consecutive quarters. Growth has been sustained across hospitals, medical equipment, and pharmaceutical distribution businesses. This year, Qisda is actively promoting the listing of BenQ Medical Center in the capital market to secure more ample market funds and accelerate the growth momentum of the hospital, thereby driving Qisda's overall growth.

Qisda’s President, Joe Huang, stated that the group continues to focus on efficiency and invest in new businesses. Recently, DFI and Ace Pillar invested in TRANSPAK to create smart packaging solutions and enhance distribution network for Europe and the US. Looking ahead, Qisda will persist in pursuing opportunities for organic growth and acquisitions across its various business sectors.

In terms of Q2 performance in each business group, the IT_Original business revenue reached a QoQ increase of 9%, with gross margin, operating margin and operating income growing QoQ and YoY as well. Medical business revenue increased by 9%, with gross margin and operating income growing QoQ and YoY. NCG business revenue QoQ increased by 10%, BSG business revenue QoQ decreased by 1%, with operating margin and operating income declined QoQ and YoY.

Qisda 2024 Q2 Financial Report Highlights:

Revenue: NTD 49.9 billion, down by 4% YoY, up by 6% QoQ.

Gross Profit: NTD 8.319 billion, down by 2% YoY, up by 11% QoQ.

Gross Margin: 16.7%, an increase of 0.4 percentage points year-on-year and 0.7 percentage points quarter-on-quarter, exceeding 16% for five consecutive quarters and setting a 20-year high.

Operating Income: NTD 1.185 billion, down by 18% YoY, up by 28% QoQ.

Operating Income Margin: 2.4%, down by 0.4 percentage points year-on-year, up by 0.4 percentage points quarter-on-quarter, continuous growth for two consecutive quarters.

Net Income: NTD 0.806 billion, a decrease of 47% YoY, an increase of 104% quarter-on-quarter.

Net Income Attributable to Qisda: NTD 0.663 billion, down by 35% year-on-year, up by 158% quarter-on-quarter.

Earnings Per Share (EPS): NTD 0.34.

Earnings Per Share (EPS) for the first half: NTD 0.47.