Hoymiles Power Electronics (688032) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 358 million, up 4.36% year-over-year, but YTD revenue fell 10.12% to RMB 1.27 billion.

• Net profit attributable to shareholders in Q3 was RMB 58 million, down 13.4% year-over-year; YTD net profit dropped 40.88% to RMB 246 million.

• R&D investment increased 40.53% in Q3 and 39.88% YTD, with R&D spending now 15.75% of revenue YTD.

Financial highlights

• Q3 basic and diluted EPS were RMB 0.47, down 12.96% year-over-year; YTD EPS was RMB 1.99, down 40.60%.

• Gross margin improved as cost of sales decreased, but higher R&D, personnel, marketing, and management expenses weighed on profits.

• Operating cash flow for the first nine months was RMB 72.7 million, a sharp decline of 424.73% year-over-year.

• Total assets at Q3-end were RMB 8.10 billion, up 12.02% from year-end 2023.

• Owner's equity attributable to shareholders was RMB 6.23 billion, down 2.31% from year-end.

Outlook and guidance

• Management attributes profit decline to increased investment in R&D, personnel, marketing, and management.

• Company is focused on strengthening R&D and innovation to support long-term growth.