Accelink Technologies (002281) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥3.11 billion, up 10.48% year-over-year, with net profit attributable to shareholders at ¥208.7 million, down 12.64% year-over-year.

• Gross margin improved slightly to 22.67%, while basic EPS was ¥0.27, a 15.63% decrease year-over-year.

• Cash flow from operations turned negative at -¥42.6 million, compared to ¥234.2 million in the prior year.

• Domestic revenue grew 24.5% year-over-year, while overseas revenue declined 9.46%.

• The company maintained its position as the fourth-largest global optical component supplier, with a 5.8% market share.

Financial highlights

• Operating income rose to ¥3.11 billion, up 10.48% year-over-year; operating cost increased 9.13%.

• Net profit attributable to shareholders was ¥208.7 million, down 12.64% year-over-year; adjusted net profit (excluding non-recurring items) was ¥206.8 million, down 1.24%.

• Gross margin was 22.67%, up 0.95 percentage points year-over-year.

• R&D investment increased 15.09% to ¥353.3 million.

• Cash and cash equivalents at period end were ¥3.69 billion.

Outlook and guidance

• The company expects continued growth in datacom driven by AI demand, but telecom and access markets face headwinds from reduced capex by operators.

• Domestic cloud customers are expected to increase their global capex share, potentially boosting the company's market share.

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