Minth Group (0425) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 13.8% year-over-year to RMB11.09 billion, driven by strong growth in battery housing and international business.

• Profit attributable to owners increased 20.4% to RMB1.07 billion, with basic EPS at RMB0.928, supported by higher gross profit and improved operational efficiency.

• Gross profit margin improved to 28.5% from 26.3% a year earlier, reflecting economies of scale and cost control.

• International revenue grew 18.6%, outpacing China’s 7.5% growth, as battery housing and traditional products saw robust demand.

• The Group continued to invest in R&D, digital transformation, and global capacity expansion, supporting long-term competitiveness in NEV and intelligent exterior products.

Financial highlights

• Revenue: RMB11,090.4 million (up 13.8% YoY); gross profit: RMB3,162 million (up 23.4% YoY); gross margin: 28.5%.

• Profit attributable to owners: RMB1,068.2 million (up 20.4% YoY); basic and diluted EPS: RMB0.928.

• Net cash from operating activities: RMB1,731 million.

• No interim dividend declared or proposed.

• Investment income rose to RMB191 million, mainly from higher interest income; other income reached RMB207 million, boosted by government grants.

Outlook and guidance

• Chinese passenger vehicle sales expected to grow 3% in 2024, with continued support from trade-in policies and NEV adoption.

• Global light vehicle sales forecasted to rise 2.4% in 2024, with growth in emerging markets offsetting slower electrification in Europe and the US.

• The Group will focus on technology, quality, cost competitiveness, and global-local operations to mitigate macroeconomic and geopolitical risks.

• Continued investment in R&D, digitalization, and operational efficiency to support sustainable growth.

• Trade tensions and cost pressures persist in the global auto market.