China Railway Signal & Communication (3969) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 6.56 billion, down 17.89% year-over-year; nine-month revenue was RMB 20.81 billion, down 15.48% year-over-year.

• Net profit attributable to shareholders for Q3 2024 was RMB 759.53 million, up 2.33% year-over-year; nine-month net profit was RMB 2.36 billion, down 8.09% year-over-year.

• Non-recurring profit or loss for the nine months totaled RMB 85.49 million, mainly from government grants and asset disposals.

• Aggregate newly-signed external contracts in the first three quarters reached RMB 29.13 billion, a 42.76% decrease year-over-year.

Financial highlights

• Basic and diluted EPS for the nine months were RMB 0.22, down 8.33% year-over-year.

• Net cash flows from operating activities for the nine months were RMB 3.40 billion, a significant improvement from negative RMB 801 million in the prior year.

• Total assets at 30 September 2024 were RMB 117.88 billion, down 0.93% from year-end 2023.

• Shareholders’ equity attributable to the parent was RMB 47.39 billion, up 1.24% from year-end 2023.

Outlook and guidance

• Railway sector revenue grew 2.19% year-over-year for the first three quarters, while urban transit, construction contracting, and other business segments saw double-digit declines.

• Overseas business revenue surged 65.90% year-over-year in the first three quarters.

• Value of newly-signed contracts in the overseas sector nearly doubled, up 95.39% year-over-year.