Himile Mechanical Science and Technology (Shandong) (002595) Q2 2024 earnings summary

Executive summary

• Achieved revenue of ¥4.14 billion in H1 2024, up 16.97% year-over-year; net profit attributable to shareholders reached ¥960 million, up 23.93% year-over-year.

• Core businesses—tire molds, large mechanical parts, and CNC machine tools—showed steady growth, with significant expansion in domestic and international markets.

• Announced a cash dividend of ¥3.75 per 10 shares, totaling ¥299.46 million, with no bonus shares or capital increase from reserves.

Financial highlights

• Revenue: ¥4.14 billion, up 16.97% year-over-year; net profit attributable to shareholders: ¥960 million, up 23.93%.

• Gross margin for tire molds: 41.59% (down 1.21 ppt); large mechanical parts: 24.48% (up 4.36 ppt); CNC machine tools: revenue up 141.31% year-over-year.

• Operating cash flow: ¥343 million, down 41.83% year-over-year due to increased purchases and payroll.

• Basic and diluted EPS: ¥1.2109, up 24.26% year-over-year.

• Total assets: ¥11.12 billion, up 12.22% from year-end 2023; net assets attributable to shareholders: ¥9.57 billion, up 11.15%.

• Non-recurring profit: ¥51.82 million, mainly from government grants and investment income.

Outlook and guidance

• Expects continued strong demand in tire mold and large mechanical parts, driven by automotive and renewable energy sectors.

• Anticipates further growth in CNC machine tools, supported by national equipment upgrade policies and industrial demand.