Hangzhou Greatstar Industrial (002444) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 6.70 billion, up 27.75% year-over-year, with net profit attributable to shareholders at RMB 1.19 billion, up 36.81% year-over-year.

• Net profit after deducting non-recurring items was RMB 1.21 billion, up 33.13% year-over-year.

• The company’s main business is the tool industry, with strong performance in hand tools, power tools, and industrial tools, especially in North America and Europe.

• Innovation, brand development, diversified channels, and internationalization are highlighted as core competencies.

Financial highlights

• Operating income: RMB 6,700,922,534.41, up 27.75% year-over-year.

• Net profit attributable to shareholders: RMB 1,193,767,743.43, up 36.81% year-over-year.

• Net profit after non-recurring items: RMB 1,206,791,925.19, up 33.13% year-over-year.

• Basic and diluted EPS: RMB 0.9994, up from RMB 0.7305 year-over-year.

• Weighted average ROE: 7.74%, up from 6.27% year-over-year.

• Net cash flow from operating activities: RMB 585.56 million, down 39.27% year-over-year.

• Gross margin for tools and hardware: 32.27%, up 2.11 percentage points year-over-year.

Outlook and guidance

• Anticipates demand recovery in H2 2024 or early 2025 as interest rates are expected to fall, unlocking pent-up market demand.

• Ongoing expansion of production capacity in Southeast Asia and continued investment in R&D and brand development.