HUAYU Automotive Systems Company (600741) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥77.29 billion, up 0.42% year-over-year; net profit attributable to shareholders was ¥2.86 billion, up 0.76% year-over-year.

• Excluding non-recurring items, net profit rose 9.13% year-over-year to ¥2.61 billion.

• Domestic business faced intensified competition and price pressure, but cost control and efficiency measures helped maintain stable profitability.

• 62% of main business revenue came from non-SAIC customers, with top 10 external clients' sales up over 19% year-over-year.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Operating income: ¥77.29 billion, up 0.42% year-over-year.

• Net profit attributable to shareholders: ¥2.86 billion, up 0.76% year-over-year.

• Basic EPS: ¥0.908, up 0.78% year-over-year; adjusted EPS (excluding non-recurring): ¥0.828, up 9.23%.

• Operating cash flow: ¥5.08 billion, up 3.58% year-over-year.

• Gross margin for main business: 11.09%, down 1.04 percentage points year-over-year.

Outlook and guidance

• Management expects continued pressure from macroeconomic, consumer, and competitive factors in both domestic and international auto markets.

• Ongoing focus on cost control, digital transformation, and green manufacturing to adapt to industry changes and maintain competitiveness.