Himile Mechanical Science and Technology (Shandong) (002595) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of ¥8.81 billion in 2024, up 22.99% year-over-year, and net profit of ¥2.01 billion, up 24.77% year-over-year.

• All three core business segments—tire molds, large mechanical components, and CNC machine tools—reported growth, with strong order books and full production lines.

• Continued international expansion with the Thailand plant ramping up and the Mexico plant commencing operations in April 2024.

Financial highlights

• Revenue: ¥8.81 billion, up 22.99% year-over-year; net profit attributable to shareholders: ¥2.01 billion, up 24.77%.

• Operating cash flow: ¥1.14 billion, down 29.01% year-over-year due to increased purchases and higher payroll.

• Gross margin for tire molds: 39.59% (down 3.10 ppt); large mechanical components: 25.67% (up 2.66 ppt); CNC machine tools: 29.30% revenue growth.

• R&D investment: ¥467 million, 5.3% of revenue, up 30.03% year-over-year.

• Cash dividend: ¥4.00 per 10 shares, total payout ¥319 million.

Outlook and guidance

• Plans to further expand domestic and international markets, enhance R&D, and accelerate product upgrades.

• Focus on talent development, cost control, and innovation to strengthen competitiveness.

• Identifies economic environment, exchange rate, market competition, and raw material price volatility as key risks.