Hengtong Optic-Electric (600487) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 15.79 billion, up 32.38% year-over-year; net profit attributable to shareholders was RMB 705 million, up 27.25% year-over-year.

• For the first nine months, revenue was RMB 42.40 billion, up 20.79%; net profit attributable to shareholders was RMB 2.31 billion, up 28.32%.

• Strong growth in UHV, smart grid, industrial and new energy, and marine energy and communications businesses.

• Order backlog: RMB 20 billion in energy interconnection, RMB 6 billion in marine communications, and over USD 300 million in PEACE submarine cable projects.

Financial highlights

• Q3 basic and diluted EPS: RMB 0.29, up 31.82% year-over-year; nine-month EPS: RMB 0.94, up 28.77%.

• Q3 net profit after non-recurring items: RMB 693 million, up 40.94% year-over-year.

• Gross margin and operating profit not explicitly disclosed.

• Operating cash flow for nine months: RMB 441 million, down 7.73% year-over-year.

• Total assets at period end: RMB 64.92 billion, up 3.88% from year-end 2023.

Outlook and guidance

• Company targets high-quality growth, leveraging opportunities in new infrastructure, carbon neutrality, and digitalization.

• Expects continued robust demand in UHV, smart grid, new energy, and marine sectors.