KINIK COMPANY (1560) 2025 Q2 法說會簡報
Company Overview
- Establishment: Founded in 1953; listed on TWSE in 2005, Stock Code 1560.
- Paid-in Capital (as of 2025/06/30): NTD 1.46 billion.
- Number of Employees: ~2400 globally, ~1800 in Taiwan.
- Factories: 5 in Taiwan, 2 in Thailand, 1 in Japan.
- 2024 Consolidated Revenue: NTD 7.02 billion, EPS=7.1.
2024 Revenue Share by Business Unit and Subsidiaries:
-
ABU Grind Wheel Business Unit (鶯歌廠 Yingge Factory)
- Revenue Share: 18%
- Products: Traditional Abrasives and Diamond Grinding Wheels (Machinery and Machine Tool Industry)
-
DBU Diamond Business Unit (鶯歌&樹林廠 Yingge & Shulin Factories)
- Revenue Share: 32%
- Products: CMP Diamond Disk (Semiconductor Industry)
-
SBU Wafer Business Unit (竹北&竹南廠 Zhubei & Zhunan Factories)
- Revenue Share: 50%
- Products: Test and Reclaimed Silicon Wafers (Semiconductor Industry)
Financial Highlights & Recent Performance
2025 Q2 Operating Results (Consolidated Financial Report)
- 2Q25 Consolidated Revenue: NTD 2.12 billion, QoQ +19.4%, Gross Margin 32.1% (+1.2 ppt), EPS=1.82.
- Gross Margin Explanation: The NTD appreciated 6.1% against USD, affecting margin by 3%, but high-end product shipments improved overall margin by 1.2%.
Accounting Period Income (all in thousands TWD except *)
| Metric | 2Q25 | 1Q25 | 2Q25 over 1Q25 | 1H25 | 1H24 | 1H25 over 1H24 |
|---|---|---|---|---|---|---|
| Net Revenue (USD thousand) | 68,421 | 53,839 | 27.1% | 122,260 | 104,297 | 17.2% |
| Net Revenue | 2,114,763 | 1,771,627 | 19.4% | 3,886,390 | 3,326,292 | 16.8% |
| Gross Margin | 32.1% | 30.9% | +1.2 ppt | 31.6% | 32.0% | -0.4 ppt |
| Operating Expenses | (327,610) | (266,125) | 23.1% | (593,735) | (507,385) | 17.0% |
| Operating Margin | 16.7% | 15.9% | +0.8 ppt | 16.3% | 16.7% | -0.4 ppt |
| Non-Operating Items | (15,958) | 33,794 | (49,752) | 17,836 | 99,106 | (81,270) |
| Net Income to Shareholders | 266,366 | 285,815 | -6.8% | 552,181 | 510,359 | 8.2% |
| Net Profit Margin | 13.3% | 16.3% | -3.0 ppt | 14.6% | 15.9% | -1.3 ppt |
| EPS | 1.82 | 1.96 | -7.1% | 3.78 | 3.52 | 7.4% |
| ROE | 15.1% | 15.8% | -0.7 ppt | 15.3% | 16.1% | -0.8 ppt |
| Average Exchange Rate-USD/NTD | 30.91 | 32.91 | -6.1% | 31.84 | 31.93 | -0.3% |
2Q25 Revenue by Business Unit and Subsidiaries
- Total Q2 Revenue: NTD 2.12 billion, QoQ +19.4% (22.2% YoY).
| Business Unit | 2Q24 | 1Q25 | 2Q25 | % (of Total) | QoQ | YoY |
|---|---|---|---|---|---|---|
| ABU+subsidiaries (Grind Wheel) | 304,331 | 301,322 | 551,671 | 26% | 83.1% | 81.3% |
| DBU (CMP Diamond Disk) | 537,297 | 561,418 | 620,784 | 29% | 10.6% | 15.5% |
| SBU (Test & Reclaim Wafer) | 889,486 | 908,887 | 942,307 | 45% | 3.7% | 5.9% |
| Total | 1,731,114 | 1,771,627 | 2,114,763 | 100% | 19.4% | 22.2% |
Recent Important Events Summary
- From April 1, 2025 to June 30, 2025, 264,000 shares were exercised and 346 shares converted under employee stock option and convertible bond issuance regulations, leading to a capital increase to NTD 1,465,335,800.
Future Outlook & Guidance
2025 Outlook:
-
ABU Grind Wheel Business Unit:
- Expected flat demand from traditional machinery customers in 2025H2; revenue expected to grow over 50% due to new mergers.
-
DBU Diamond Business Unit:
- Slight increase in demand for mature processes; new IDM customer starts small-scale contribution in Q3.
- Shipments expected to approach 50,000 units/month by year-end.
-
SBU Wafer Business Unit:
- Capacity to increase by 10% to 330,000 wafers/month in July 2025, with further expansion planned for 2026.
- Revenue expected to be flat due to exchange rate impacts despite capacity increases.
Strategic Initiatives
- Subsidiaries Acquisition: MKS (Japan) & MGT (Thailand) were acquired on April 1, 2025, to enhance global competitiveness and technological innovation.
Products, Services & Technology
Core Business: Grinding
- KINIK offers a range of grinding products across industries, focusing on continuous innovation and product development:
- Traditional Grinding Wheel: 1953
- Diamond Grinding Wheel and Materials: 1980
- CMP Diamond Disk: 1997
- Various advanced grinding and machining tools: 1990-2022
Major Product and Business Diagram
- Customer Industries: Semiconductor/Electronics, Machinery/Mechanical
- Business Units:
- SBU (Semiconductors): Test Wafer, Reclaim Wafer
- DBU (Diamond): CMP Disk, Diamond Tools
- ABU (Abrasive): Grinding Wheels
Plant Locations
Taiwan
- Yingge Factory: Grinding Wheel & Diamond Disk
- Shulin Factory: Diamond Disk, Cutting Tools
- Hsinchu Factory: Diamond Tools, Coating
- Zhubei Factory: Reclaim & Test Wafer
Subsidiaries
- Hongia Industry Co., Ltd. (Taiwan) - Electroplated Wheels and Products
- Kinik - Thai Co., Ltd. (Thailand) - Various types of cutting wheels
Milestones (Awards & Recognition)
- Numerous awards for quality and excellence in business practices, including national quality awards and industry-specific recognitions spanning from 1993 to 2021.