Shenzhou International Group (2313) H1 2024 earnings summary

Executive summary

• Sales revenue for the six months ended 30 June 2024 rose 12.2% year-over-year to RMB12,975.97 million, driven by increased procurement from major customers and higher orders in China and Japan.

• Net profit attributable to owners surged 37.8% to RMB2,931.03 million, a record high for the half-year, supported by higher capacity utilisation and improved production efficiency at new overseas factories.

• Gross profit rose 45.0% to RMB3,761.47 million, with gross margin improving by 6.6 percentage points to 29.0% due to higher capacity utilization and operational improvements.

• Interim dividend declared at HK$1.25 per share, up 31.6% from the prior year.

• The Group focused on optimizing production capacity, expanding overseas operations, and talent development.

Financial highlights

• Revenue: RMB12,975.97 million, up 12.2% year-over-year.

• Gross profit: RMB3,761.47 million, up 45.0% year-over-year; gross margin at 29.0%.

• Net profit attributable to owners: RMB2,931.03 million, up 37.8% year-over-year.

• Basic earnings per share: RMB1.95, up from RMB1.41.

• Net cash from operating activities: RMB2,309.58 million (down from RMB2,703.72 million).

Outlook and guidance

• Management expects continued year-on-year growth in the second half of 2024, with capacity utilisation at an ideal level.

• Plans to further expand fabric production capacity in Vietnam and explore new overseas markets.

• Continued focus on digital transformation, automation, and talent development to drive sustainable growth.