Avary Holding (002938) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥13.13 billion, up 13.79% year-over-year, driven by consumer electronics recovery and AI-driven demand.

• Net profit attributable to shareholders was ¥784 million, down 3.40% year-over-year, while adjusted net profit (excluding non-recurring items) rose 2.17% to ¥756 million.

• Cash flow from operations decreased 37.48% to ¥2.79 billion, mainly due to higher cash outflows to employees.

• The company maintained its leading position in the global PCB industry, with a diversified product portfolio and strong R&D investment.

• No interim dividend was declared for the period.

Financial highlights

• Gross margin was 17.97%, nearly flat year-over-year.

• Basic and diluted EPS were both ¥0.34, down 2.86% year-over-year.

• Total assets at period-end were ¥39.94 billion, down 5.52% from year-end 2023.

• Net assets attributable to shareholders were ¥29.20 billion, down 1.50% from year-end 2023.

• R&D investment increased 20.43% to ¥1.08 billion, accounting for 8.22% of revenue.

Outlook and guidance

• The company expects continued growth in AI-related PCB demand, especially for AI servers and automotive electronics.

• Ongoing expansion in high-end HDI and SLP capacity is expected to further boost market share.

• Management remains focused on digital transformation, green manufacturing, and risk management to ensure stable development.