AECC AERO-ENGINE CONTROL (000738) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥2.81 billion, up 2.61% year-over-year, with net profit attributable to shareholders at ¥469.7 million, up 4.46% year-over-year.

• Cash flow from operating activities improved significantly to ¥184.7 million from a negative ¥19.4 million in H1 2023.

• The company remains a leading supplier of aero-engine and gas turbine control systems, with strong R&D and manufacturing capabilities.

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

Financial highlights

• Operating income: ¥2.81 billion, up 2.61% year-over-year; net profit attributable to shareholders: ¥469.7 million, up 4.46%.

• Gross margin for manufacturing: 31.09%, up 0.36 percentage points year-over-year.

• R&D investment intensity: 10.94%, up 0.26 percentage points; total R&D spending: ¥307 million, up 5.11%.

• Basic and diluted EPS: ¥0.3572, up 4.47% year-over-year.

• Total assets at period end: ¥16.06 billion, up 1.78% from year-end 2023.

Outlook and guidance

• Management targets further strengthening of cash collection and inventory management to address rising working capital pressure.

• Plans to leverage national strategies in large aircraft and low-altitude economy, with focus on expanding civil and derivative product markets.