China Electronics Huada Technology Company (85) H2 2024 earnings summary

Executive summary

• FY2024 revenue was HK$2,349.0 million, down 22.2% YoY; profit attributable to owners was HK$587.5 million, down 14.4%.

• Basic EPS was HK28.94 cents, versus HK33.82 cents in 2023.

Financial highlights

• Gross profit was HK$1,135.0 million, down from HK$1,298.1 million; operating profit was HK$652.1 million versus HK$757.3 million.

• Profit before tax was HK$633.8 million and profit for the year HK$588.7 million; 2023 comparatives were HK$736.7 million and HK$687.4 million.

• Other income, net rose to HK$125.6 million from HK$69.1 million, including HK$88.4 million of government grants, up 185.1% YoY.

• Operating cash flow was HK$274.4 million, down from HK$889.3 million; cash and cash equivalents ended the year at HK$743.0 million versus HK$1,107.5 million.

Outlook and guidance

• Global macro conditions are expected to remain weak and smart-card demand to stay in a downturn; intensifying domestic competition is expected to pressure chip selling prices.

• Broader security requirements across industries and intelligent devices are seen expanding opportunities for security SE and security MCU chips.

• Planned priorities include expanding potential markets, adjusting production and sales strategies, and investing in security-chip R&D for mobile terminals, IoT and connected vehicles.