Is IMOS's Q1 2025 forecast a sign of recovery or continued struggle?

IMOS's Q1 2025 forecast indicates a sign of recovery. Here's the analysis to support this conclusion:

1. Revenue Growth: IMOS reported a 2.1% year-over-year revenue increase in Q1 2025 compared to Q1 2024, totaling NT$5,532.3 million (US$166.7 million). This growth, although modest, represents a positive trajectory after the challenges faced in the previous year.
2. March Surge: The company's revenue for March 2025 was NT$2,031.6 million (US$61.2 million), marking a significant 15.7% increase from February 2025 and a 5.1% year-over-year increase. This substantial monthly growth suggests a strong recovery in market demand or operational efficiency.
3. Market Conditions: The revenue growth is attributed to improvements in end markets and customer inventory levels. This indicates that IMOS is benefiting from favorable market conditions and effective customer management.
4. Strategic Adjustments: Despite the positive trends, IMOS remains vigilant about future tariff impacts and is planning strategic adjustments to support its customers exposed to the U.S. market. This proactive approach suggests a commitment to navigating potential challenges and maintaining growth momentum.
5. Industry Outlook: While the industry faced headwinds in the previous quarters, IMOS is optimistic about the latter half of 2024, with expectations of improvement in the second half of the year. This forecast aligns with the recovery narrative, as the company anticipates better market conditions ahead.

In conclusion, the Q1 2025 forecast reflects a recovery in performance for IMOS, driven by revenue growth, favorable market conditions, and strategic adjustments.