Sunny Optical Technology (Group) Company (2382) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 32.1% year-over-year to RMB 18,860.2 million, driven by strong growth in handset lens sets, camera modules, vehicle lens sets, and XR/VR products.

• Net profit surged 147% year-over-year to RMB 1,111.5 million, with net profit margin improving to 5.9% from 3.2% a year earlier.

• Gross profit increased 52.4% to RMB 3,246.5 million, with gross margin up to 17.2%, mainly due to improved profitability in handset lens sets and camera modules.

• Basic earnings per share increased 147.7% to RMB 99.0 cents.

• No interim dividend was declared for the period; a final dividend for 2023 was paid in June 2024.

Financial highlights

• Optical Components revenue grew 26.9% to RMB 5,480.4 million; Optoelectronic Products revenue rose 35.5% to RMB 13,191.1 million; Optical Instruments revenue declined 15.8% to RMB 188.7 million.

• R&D expenditure rose 21.9% to RMB 1,468.4 million, representing 7.8% of revenue.

• Current ratio improved to 1.8x; gearing ratio increased to 12.1%.

• Cash and cash equivalents stood at RMB 9,603.2 million at period end.

• Effective tax rate dropped to 11.0% from 22.4% a year earlier.

Segment performance

• Handset lens sets shipments rose 23.7% to 634.4 million units, maintaining global No. 1 market share.

• Vehicle lens sets shipments increased 13.1% to 53.2 million units, consolidating leadership in ADAS sensing.

• Handset camera modules shipments grew 13.5% to 289.0 million units, also holding global No. 1 market share.

• XR and AR product development and mass production advanced, with new partnerships and technological breakthroughs.

• Optical Instruments segment saw revenue and profit decline, but achieved R&D breakthroughs in inspection equipment and microscopy.