Hengtong Optic-Electric (600487) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥59.98 billion in 2024, up 25.96% year-over-year; net profit attributable to shareholders reached ¥2.77 billion, up 28.57% year-over-year; cash flow from operations increased 75.62% to ¥3.26 billion.

• Continued strategic investment in core communication and energy sectors, with significant growth in marine energy and communication businesses.

• Enhanced global presence through acquisitions and capacity expansion in Indonesia, Egypt, Mexico, and other regions.

• Strengthened R&D with investment of ¥1.89 billion, representing 3.16% of revenue; 2,372 R&D staff, 14.64% of total employees.

Financial highlights

• Revenue: ¥59.98 billion, up 25.96% year-over-year.

• Net profit attributable to shareholders: ¥2.77 billion, up 28.57% year-over-year.

• Operating cash flow: ¥3.26 billion, up 75.62% year-over-year.

• Basic and diluted EPS: ¥1.14, up 31.03% year-over-year.

• Gross margin for manufacturing: 13.21%; for services: 19.19%.

• Net assets: ¥28.53 billion, up 11.28% year-over-year.

Outlook and guidance

• Focus on high-quality growth, digital transformation, and international expansion.

• Plans to further strengthen core communication and energy businesses, accelerate global layout, and enhance R&D in next-generation technologies.

• Continued emphasis on ESG, green manufacturing, and sustainable development.