Intron Technology (1760) H1 2024 earnings summary

Executive summary

• Revenue grew 8% year-on-year to RMB2.84 billion in H1 2024, driven by new energy and automated & connected vehicle segments.

• Net profit attributable to shareholders fell 37% to RMB97.7 million, with net profit margin at 3.4%.

• Gross profit margin declined to 15.9% from 20.6% due to intensified price competition and industry price wars.

• R&D investment remained strong at RMB215 million, 7.6% of revenue, supporting future growth and product innovation.

• Market share gains in new energy and intelligent driving, despite industry price wars and margin pressure.

Financial highlights

• Revenue: RMB2,835 million, up 8% year-on-year.

• Gross profit: RMB452 million, down 16% year-on-year; gross margin: 15.9% (down 4.7 pts year-on-year).

• Net profit: RMB97.7 million, down from RMB154.5 million in H1 2023; net margin: 3.4%.

• EPS: RMB8.98 cents basic and diluted (down from RMB14.21 and RMB13.99 cents, respectively).

• Cash and cash equivalents: RMB732.5 million as of 30 June 2024.

Outlook and guidance

• Positive outlook for H2 2024, expecting steady growth in new energy and automated & connected vehicle markets.

• Anticipates global new energy vehicle sales to reach 17 million in 2024, with continued long-term demand.

• Plans to further invest in R&D, expand international market presence, and increase market share in core segments.