Dongfang Electric Corporation (1072) H1 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB33.46 billion, up 11.84% year-over-year, driven by strong growth in clean and efficient energy equipment and modern manufacturing services.

• Net profit attributable to shareholders was RMB1.69 billion, down 15.52% year-over-year, mainly due to increased costs, margin pressure, and investment losses; EPS was RMB0.54.

• New effective orders totaled RMB56.07 billion, up 14.77% year-over-year, with nearly 70% from clean, efficient, and renewable energy equipment.

• Technological innovation highlights include a world-record 18MW offshore wind turbine and breakthroughs in gas turbine and hydropower technologies.

• No interim dividend for H1 2024; focus remains on completing full-year objectives.

Financial highlights

• Total operating income: RMB33.46 billion, up 11.84% year-over-year, mainly from clean and efficient energy equipment (+41.03%) and modern manufacturing services (+46.06%).

• Net profit attributable to shareholders: RMB1.69 billion, down 15.52% year-over-year; net profit after non-recurring items: RMB1.63 billion, down 10.16% year-over-year.

• Basic and diluted EPS: RMB0.54, down 15.63% year-over-year.

• Net cash flow from operating activities: RMB4.06 billion, a significant improvement from negative RMB2.21 billion in H1 2023.

• R&D expenditure increased 25.88% year-over-year to RMB1.35 billion.

Outlook and guidance

• The company will focus on large-scale equipment renewal, high-quality development of key industrial chains, and enhancing market expansion, innovation, and risk control in H2 2024.