Han's Laser Technology Industry (002008) H1 2024 earnings summary

Executive summary

• H1 revenue rose 4.41% YoY to RMB 6.355bn; attributable net income increased 184.81% to RMB 1.225bn, boosted by a one-off subsidiary disposal gain.

• Excluding non-recurring items, attributable net income was RMB 220.4m, up 15.23% YoY, indicating more modest underlying growth.

Financial highlights

• Operating profit rose 220.71% YoY to RMB 1.248bn; total costs increased 4.20% to RMB 6.207bn.

• Basic and diluted EPS were RMB 1.17, up 185.37% YoY; adjusted EPS excluding non-recurring items was RMB 0.21.

• Operating cash flow was negative RMB 198.0m versus positive RMB 189.2m a year earlier; inventory and receivables increased cash tied up in operations.

• R&D expense was RMB 801.4m, up 4.95% YoY; sales and administrative expenses declined 2.28% and 1.46%, respectively.

Outlook and guidance

• PCB equipment momentum and overseas expansion, particularly in Southeast Asia, are targeted growth opportunities as customers shift production and demand higher-end board processing.

• New-energy equipment demand remains pressured by slower domestic battery and solar capacity expansion; overseas business development is a focus.

• Semiconductor orders improved from last year and new equipment is progressing through customer validation; Micro-LED and silicon-carbide applications are development priorities.

• High-power laser cutting is being expanded across high-end and mid-market applications; a 150 kW cutting system was launched.