Canny Elevator (002367) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥1.02 billion, down 16.72% year-over-year; YTD revenue was ¥2.88 billion, down 17.93% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥105.88 million, down 12.34% year-over-year; YTD net profit was ¥281.71 million, down 19.60% year-over-year.

• The company faced continued pressure from the real estate sector downturn and excess capacity in the elevator industry.

• Gross margin improved to 29.15% YTD, up 0.93 percentage points year-over-year due to efficiency and management improvements.

Financial highlights

• Operating cash flow for the first nine months was ¥258.90 million, down 54.75% year-over-year.

• Basic and diluted EPS for Q3 was ¥0.1327, down 13.09% year-over-year; YTD EPS was ¥0.3531, down 20.56%.

• Total assets at Q3-end were ¥7.21 billion, down 2.63% from year-end 2023.

• Shareholders’ equity was ¥3.46 billion, up 0.51% from year-end 2023.

• Weighted average ROE for Q3 was 3.11%, down 0.51 percentage points year-over-year.

Outlook and guidance

• The company continues to focus on customer satisfaction and operational efficiency amid a challenging market.

• National real estate investment fell 10.1% YTD, but the decline is narrowing and market activity is picking up.