Crystal International Group (2232) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 8.4% year-over-year to US$1,094 million, driven by sales growth across all product segments and key regions.

• Net profit increased 13.6% year-over-year to US$84 million, with net profit margin improving from 7.3% to 7.7%.

• Gross profit grew 10.8% to US$213 million, with gross margin up to 19.5% from 19.1% year-over-year.

• The company declared an interim dividend of HK13.8 cents per share, up from HK5.0 cents last year, with payout ratio increased to 60%.

• All business segments and key regions saw sales growth, supported by cross-selling, co-creation with customers, and a rebound in demand.

Financial highlights

• Revenue: US$1,094 million (up from US$1,009 million year-over-year).

• Net profit: US$84 million (up from US$74 million year-over-year).

• Gross profit: US$213 million; gross margin: 19.5% (vs. 19.1%).

• Basic EPS: 2.94 US cents (up from 2.58 US cents year-over-year).

• Cash and cash equivalents: US$542.8 million at 30 June 2024; net cash position: US$538 million.

Outlook and guidance

• Manpower shortages have been largely resolved, with 5,000 new hires in late Q2, increasing total workforce to 70,000.

• Additional chase orders expected as brand customers shift to smaller, more frequent orders and replenish low inventories.

• Operational efficiency and profit margins are expected to improve as capacity ramps up in the second half.

• Capital expenditure in H2 2024 will exceed H1, focusing on digital transformation, automation, and vertical development.