AAPICO Hitech Public Company (AH) H1 2024 earnings summary

Executive summary

• Revenue for Q2 2024 declined 11.7% year-over-year to THB 6,494 million, with net profit dropping 74.9% to THB 103 million and net profit margin falling to 1.6% from 5.6% in Q2 2023.

• Interim financials for the three- and six-month periods ended 30 June 2024 were reviewed, with a qualified conclusion on comparative figures due to prior period limitations related to an associate's unreviewed accounts.

• The group reported lower revenues and profits year-over-year for both the three- and six-month periods.

• Gross profit margin decreased to 8.6% from 10.8% year-over-year, reflecting weaker operating leverage.

• The company maintains a strong balance sheet with cash over THB 2,180 million and interest-bearing debt to equity at 0.4 times.

Financial highlights

• 1H 2024 total revenue was THB 14,074 million, down 9.3% year-over-year.

• Six-month consolidated revenue was THB 13,888.8 million, down from THB 15,278.5 million year-over-year.

• Adjusted EBIT for 1H 2024 was THB 814 million, down 31% year-over-year; adjusted EBITDA was THB 1,264 million, down 28%.

• Net profit for 1H 2024 (excluding FX and one-time items) was THB 299 million, down 66.6% year-over-year.

• Basic EPS for six months was THB 1.19, compared to THB 2.74 year-over-year.

Outlook and guidance

• Management expects improved performance in the second half of 2024, supported by ongoing cost control and new order inflows.

• EV-related revenue is estimated to reach 5% of the automotive parts manufacturing business in 2024, with continued new EV orders.

• The Board approved an interim dividend of THB 0.3 per share, totaling THB 104.1 million, to be paid in September 2024.

• Acquisition of a new Malaysian subsidiary, Able Mobility Sdn. Bhd., was approved post-period.