Everdisplay Optronics Shanghai (688538) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 2.39 billion, up 74.36% year-over-year, driven by strong shipment growth across product lines.

• Net loss attributable to shareholders was RMB -1.28 billion, similar to the prior year, with continued negative EPS of -0.09.

• Gross margin improved significantly, with a year-over-year increase of 18.83 percentage points.

• Cash flow from operating activities turned positive at RMB 24.36 million, a notable improvement from last year.

• The company remains a leader in AMOLED panels for tablets, notebooks, and automotive displays, maintaining top domestic market share.

Financial highlights

• Operating income: RMB 2.39 billion, up 74.36% year-over-year.

• Net loss: RMB -1.28 billion, nearly flat year-over-year.

• Gross margin improved by 18.83 percentage points year-over-year.

• Cash and cash equivalents at period end: RMB 1.23 billion.

• R&D investment: RMB 241.86 million, up 21.6% year-over-year, representing 10.10% of revenue.

Outlook and guidance

• AMOLED demand in tablets and notebooks expected to surge, with Omdia forecasting 140% shipment growth in 2024.

• Company accelerating capacity expansion, with 6th generation AMOLED line ramping to 45K/month.

• Focus remains on product innovation, cost control, and expanding high-end market share.