Zhejiang Jingsheng Mechanical & Electrical (300316) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥4.33 billion, down 14.34% year-over-year; YTD revenue was ¥14.48 billion, up 7.55% year-over-year.

• Net profit attributable to shareholders in Q3 was ¥864 million, down 33.96% year-over-year; YTD net profit was ¥2.96 billion, down 15.76% year-over-year.

• The company continued to advance its "advanced materials, advanced equipment" strategy, focusing on R&D and market expansion.

• Benefiting from downstream demand in consumer electronics and AI, the semiconductor industry is recovering, supporting equipment sales growth.

Financial highlights

• Q3 basic and diluted EPS were ¥0.66, down 34% year-over-year; YTD EPS was ¥2.26, down 15.99%.

• Operating cash flow in Q3 was ¥878 million, down 48.72% year-over-year.

• Total assets at Q3-end were ¥34.07 billion, down 7.44% from year-end 2023.

• Shareholders’ equity at Q3-end was ¥17.04 billion, up 13.88% from year-end 2023.

Outlook and guidance

• The company is accelerating its semiconductor equipment localization strategy, expanding its product portfolio and customer base.

• Downstream customers are planning capacity expansions, driving demand for 8-12 inch silicon wafer equipment and advanced process tools.

• The global semiconductor market is forecast to grow 12.5% in 2025, supporting industry recovery.