Zhejiang Jingsheng Mechanical & Electrical (300316) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥10.15 billion, up 20.71% year-over-year, driven by growth in both equipment and materials segments.

• Net profit attributable to shareholders was ¥2.10 billion, down 4.97% year-over-year, with adjusted net profit (excluding non-recurring items) up 1.02%.

• Cash flow from operating activities dropped 71.83% year-over-year to ¥287 million, mainly due to lower sales receipts and tax rebates.

• The company maintained its leadership in semiconductor and photovoltaic equipment, with significant advances in new materials and smart manufacturing.

• No interim dividend, bonus shares, or capital increase from reserves was planned for the half-year.

Financial highlights

• Operating income: ¥10.15 billion (+20.71% YoY); net profit: ¥2.10 billion (-4.97% YoY); adjusted net profit: ¥2.09 billion (+1.02% YoY).

• Basic and diluted EPS: ¥1.60 (-5.33% YoY); ROE: 13.22% (-5.31pp YoY).

• Gross margin for equipment and services: 37.43% (-2.70pp YoY); for materials: 40.15% (-14.51pp YoY).

• Total assets at period end: ¥34.56 billion (-6.10% from year-end); net assets: ¥16.15 billion (+7.91%).

• R&D investment: ¥611 million (+1.92% YoY), with 204 invention patents held.

Outlook and guidance

• The company expects continued growth in semiconductor and photovoltaic sectors, with focus on advanced materials and equipment innovation.

• Ongoing expansion in 8-inch SiC substrate capacity and new product launches in smart manufacturing and digitalization.

• No change in registered capital or major business scope anticipated.