Shengyi Technology (600183) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 9.63 billion, up 22.19% year-over-year, with net profit attributable to shareholders at RMB 932 million, a 68.04% increase compared to the same period last year.

• Gross margin improved to 20.07%, up 2.03 percentage points year-over-year, driven by product mix optimization and cost control.

• The company maintained its position as the world's second-largest rigid copper-clad laminate supplier, with a global market share of about 12%.

• Production and sales of copper-clad laminates and bonding sheets saw double-digit growth, with PCB sales volume up 21.34% year-over-year.

• The company continued to invest in R&D, with 32 patents authorized in H1 2024 and ongoing expansion in high-end electronic materials.

Financial highlights

• Operating income: RMB 9.63 billion, up 22.19% year-over-year.

• Net profit attributable to shareholders: RMB 932 million, up 68.04% year-over-year.

• Net profit after deducting non-recurring items: RMB 909 million, up 75.74% year-over-year.

• Basic EPS: RMB 0.40, up 66.67% year-over-year.

• Operating cash flow: RMB 926 million, down 31.44% year-over-year due to increased cash outflows for goods and services.

• Gross margin: 20.07%, up 2.03 percentage points year-over-year.

Outlook and guidance

• The company expects continued growth in AI servers, network infrastructure, and consumer electronics, with the PCB industry forecasted to grow 5% for the full year.

• Management will focus on product structure optimization, cost control, and expanding high-end product certification to maintain profitability.