Amlogic (Shanghai) Co (688099) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 3.02 billion, up 28.33% year-over-year; net profit attributable to shareholders was RMB 362 million, up 96.06% year-over-year.

• Q2 2024 revenue hit a record RMB 1.64 billion, up 24.53% year-over-year and 18.82% sequentially; net profit was RMB 235 million, up 52.07% year-over-year and 83.94% sequentially.

• Excluding share-based payment expenses, adjusted net profit for H1 2024 was RMB 431 million.

• T series product sales grew ~70% year-over-year; W series Wi-Fi 6 products saw rapid market adoption.

• R&D headcount increased by 108; R&D expenses rose to RMB 674 million.

Financial highlights

• Operating cash flow for H1 2024 was RMB 622 million, up 12.46% year-over-year.

• Gross margin and profitability improved, with basic EPS at RMB 0.87 (up 93.33%) and diluted EPS at RMB 0.86 (up 95.45%).

• Net assets attributable to shareholders at period end: RMB 5.91 billion, up 8.37% from year-end 2023.

• R&D investment accounted for 22.35% of revenue.

Outlook and guidance

• Management expects continued revenue growth in Q3 and full-year 2024, though with some uncertainty.

• New product launches and market expansion are expected to drive further growth.