Kaishan Group Co (300257) H2 2024 earnings summary

Executive summary

• Achieved 2024 revenue of ¥4.23 billion, up 1.64% year-over-year, with overseas revenue accounting for 44.95% of total revenue and significant growth in geothermal power and compressor businesses.

• Net profit attributable to shareholders was ¥320 million, down 26.05% year-over-year, mainly due to increased costs and expenses.

• Overseas expansion continued with new subsidiaries in Seoul, Bangkok, Mexico City, and a new factory in Izmir, Turkey.

• Geothermal power projects in Indonesia, Kenya, Hungary, and the US advanced, with SMGP project fully operational and new capacity under development.

Financial highlights

• Operating income: ¥4.23 billion, up 1.64% year-over-year.

• Net profit attributable to shareholders: ¥320 million, down 26.05% year-over-year.

• Operating cash flow: ¥1.01 billion, up 59.8% year-over-year.

• Basic and diluted EPS: ¥0.32, down 27.27% year-over-year.

• Total assets: ¥17.08 billion, up 19.93% from previous year-end.

• Net assets: ¥6.52 billion, up 5.34% from previous year-end.

Outlook and guidance

• Overseas revenue expected to reach two-thirds of total revenue in coming years.

• 2025 SMGP geothermal project revenue target set at $125 million, with potential to increase to $145 million if expansion is approved.

• Overseas geothermal power revenue target of $300 million within 3-5 years remains unchanged.

• Compressor business overseas revenue target of $300 million remains.

• Focus on green hydrogen and ammonia projects as new growth drivers.