Universal Scientific Industrial (Shanghai) (601231) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 2.65% year-over-year to RMB 16.62 billion; nine-month revenue up 2.21% to RMB 44.01 billion.

• Net profit attributable to shareholders fell 18.03% year-over-year in Q3 and 6.86% for the nine-month period.

• Net profit after deducting non-recurring items dropped 22.07% in Q3 and 17.28% for the nine months.

Financial highlights

• Q3 2024 basic EPS was RMB 0.23, down 20.69% year-over-year; nine-month EPS was RMB 0.59, down 7.81%.

• Net cash flows from operating activities for the nine months decreased 51.73% year-over-year, mainly due to higher receivables collections last year and increased purchases this year.

• Total assets as of September 30, 2024, were RMB 40.73 billion, up 3.36% from December 31, 2023.

• Owners' equity attributable to shareholders increased 2.95% to RMB 17.49 billion.

Outlook and guidance

• Q4 2024 revenue is expected to decrease by about 5% quarter-on-quarter; operating profit margin is projected to decline by around 1 percentage point due to lower revenue and high costs.

• Guidance is subject to uncertainties including global pandemic, international trade stability, and industry conditions.