Chervon (2285) H1 2024 earnings summary

Executive summary

• Revenue rose 10.5% year-over-year to $816M for H1 2024, with net profit up 25.6% to $62M and net profit margin improving to 7.6% from 6.6%.

• Gross profit margin improved to 32.9% from 32.1%, supported by operational efficiency and favorable input costs.

• Adjusted net profit grew 24.4% to $62M, reflecting strong core earnings and operational efficiency.

• Over 100 new products launched, with lithium-ion battery products accounting for over 90% of new launches.

• Net cash from operating activities was $119.1M, a significant turnaround from a net outflow of $86.6M in the prior year.

Financial highlights

• EBIT increased 29.3% year-over-year to $87M in H1 2024.

• Gross profit grew 13.2% to $268.7M; profit before taxation increased 24.1% to $71.8M.

• Earnings per share (basic and diluted) increased 20% to $0.12.

• Total assets increased 8% to $1.94B; total equity rose 2.2% to $981.6M.

• Cash and cash equivalents stood at $387.1M as of June 30, 2024.

Outlook and guidance

• Management expects strong full-year 2024 performance, citing improved fundamentals and operational excellence.

• Confident in capturing growth opportunities in the expanding lithium battery sector for sustainable long-term growth.

• Continued investment in manufacturing capacity, especially in Vietnam, to support future growth.

• Management is focused on managing uncertainty for 2025 and beyond.