Han's Laser Technology Industry (002008) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 4.83% YoY to RMB 14.77bn; attributable net income increased 106.52% to RMB 1.694bn, while adjusted net income fell 4.39% to RMB 444.6m.

• Profit growth was heavily influenced by the non-recurring disposal of control of the optical technology subsidiary, adding RMB 890.1m to attributable net income.

• The financial statements received a standard unqualified audit opinion; revenue recognition and inventory write-downs were identified as key audit matters.

Financial highlights

• Operating profit reached RMB 1.816bn, up 120.61% YoY; total net income was RMB 1.752bn versus RMB 911.1m in FY23.

• Basic and diluted EPS were both RMB 1.62, versus RMB 0.78 in FY23; attributable ROE was 10.95%, up from 5.61%.

• Gross margin was 31.84%, down 0.92 percentage points YoY; PCB equipment margin was 28.11%, down 4.48 points.

• Operating cash flow was RMB 1.126bn, down 17.36% YoY; R&D expense was RMB 1.800bn, up 1.87%.

Outlook and guidance

• FY25 priorities: deepen core components and industry-specific equipment, increase R&D and solution promotion, and expand share in targeted markets.

• Plans include accelerating overseas localization through subsidiaries or production bases, advancing digital operations, and expanding centralized procurement and standardization.

• Overseas revenue contribution continued to rise in FY24; international supply-chain diversification is expected to support equipment demand, particularly in Southeast Asia.