Wus Printed Circuit (Kunshan) Co. (002463) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥5.42 billion, up 44.13% year-over-year, driven by strong demand in AI, high-speed computing, and network infrastructure.

• Net profit attributable to shareholders was ¥1.14 billion, a 131.59% increase year-over-year.

• Gross margin for PCB business improved by 7.07 percentage points to 38.10% year-over-year.

• AI server and HPC-related PCB revenue share in enterprise communication boards rose from 21.13% to 31.48%.

• The company continued to invest in R&D, with spending up 61.34% year-over-year to ¥366.56 million.

Financial highlights

• Operating cash flow was ¥1.19 billion, up 10.47% year-over-year.

• Basic EPS was ¥0.5966, up 130.26% year-over-year.

• Total assets at June 30, 2024, were ¥18.04 billion, up 12.48% from year-end 2023.

• Net assets attributable to shareholders reached ¥10.10 billion, up 3.20% from year-end 2023.

• Adjusted net profit (excluding non-recurring items) was ¥1.11 billion, up 150.22% year-over-year.

Outlook and guidance

• The PCB industry is expected to continue recovering in H2 2024, with inventory normalization and demand improvement.

• Prismark forecasts global PCB market value to grow at a 5.4% CAGR from 2023 to 2028.

• The company will focus on high-end HDI, high-speed, and high-layer PCB products for AI, data centers, and automotive applications.

• The Thailand plant is expected to begin trial production and customer certification in Q4 2024.