Dajin Heavy Industry (002487) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ¥2.31 billion, down 30.81% year-over-year, with net profit at ¥282 million, down 30.88%.

• The company achieved a significant breakthrough in offshore engineering exports, shifting to a higher value-added DAP (Delivered at Place) model.

• Offshore engineering business became the dominant segment, with overseas and domestic offshore engineering revenue share exceeding 60%, up over 10 percentage points year-over-year.

• Gross margin improved to 27.19%, up 2.61 percentage points year-over-year.

• Operating cash flow increased to ¥552 million, up ¥406 million year-over-year.

Financial highlights

• Q3 revenue was ¥950 million, down 25.31% compared to the same quarter last year.

• Q3 net profit attributable to shareholders was ¥108 million, down 20.09% year-over-year.

• Basic and diluted EPS for the first nine months was ¥0.44, down 31.25% year-over-year.

• Total assets at quarter-end were ¥11.56 billion, up 13.10% from the previous year-end.

• Shareholders’ equity reached ¥7.08 billion, up 2.40% from the previous year-end.

Outlook and guidance

• Domestic downstream market is gradually recovering, with offshore business shipments and revenue increasing significantly compared to the first half.

• The company is focusing on high-standard, high-quality overseas offshore wind markets and expanding its presence in Europe and Asia-Pacific.