Beijing New Building Materials (000786) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥13.60 billion, up 19.25% year-over-year; net profit attributable to shareholders was ¥2.21 billion, up 16.79% year-over-year.

• Operating profit rose 23.29% year-over-year; cash flow from operations increased 59.90% year-over-year.

• The company completed the acquisition and integration of Carpoly, expanding its coatings business.

• International business saw strong growth, with overseas sales, revenue, and profit all increasing significantly.

Financial highlights

• Revenue: ¥13.60 billion (+19.25% YoY); net profit attributable to shareholders: ¥2.21 billion (+16.79% YoY).

• Operating cash flow: ¥2.04 billion (+59.90% YoY); basic EPS: ¥1.31 (+16.76% YoY).

• Gross margin for gypsum board: 39.62%; coatings revenue grew 265.79% YoY.

• Total assets: ¥35.53 billion (+15.87% from end-2023); net assets: ¥24.21 billion (+3.63%).

Outlook and guidance

• The company will continue to focus on its “One Body, Two Wings, Global Layout” strategy, emphasizing growth in gypsum board, waterproofing, and coatings.

• R&D investment will remain strong, with a focus on green, low-carbon, and digital transformation.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.