Estun Automation (002747) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥2.17 billion, down 3.21% year-over-year; net loss attributable to shareholders was ¥73.42 million, a 175.37% decrease from last year.

• Industrial robots and intelligent manufacturing revenue fell 4.55% to ¥1.65 billion; automation core components grew 1.33% to ¥516 million.

• Domestic revenue declined 9.4%, while overseas revenue rose 11.74%, now accounting for 33.79% of total revenue.

• Gross margin dropped 3.76 percentage points to 29.33%, mainly due to weak demand in the photovoltaic sector and intensified competition.

• Operating cash flow was negative ¥342 million, a 271.55% decrease year-over-year.

Financial highlights

• EBITDA for the period was ¥66.26 million.

• Net assets attributable to shareholders at period-end were ¥2.57 billion, down 4.6% from year-end 2023.

• Total assets increased 3.11% to ¥10.39 billion.

• Basic and diluted EPS were both -¥0.08, compared to ¥0.11 last year.

• R&D investment was ¥244 million, 11.24% of revenue.

Outlook and guidance

• The company plans to intensify business development in H2, aiming for full-year revenue growth and improved profitability through cost control and efficiency measures.

• Overseas market expansion is a key focus, with expectations for international business to become a new growth driver.