Jiangsu Hengli Hydraulic (601100) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 reached ¥4.83 billion, up 8.56% year-over-year; net profit attributable to shareholders was ¥1.29 billion, up 0.71% year-over-year.

• Core business in hydraulic transmission and control equipment saw growth despite a challenging construction machinery market.

• Overseas revenue increased 15.29% year-over-year, with significant progress in international expansion and product innovation.

• R&D investment totaled ¥334 million, accounting for 6.92% of revenue, supporting new product launches and technological advancement.

Financial highlights

• Operating income: ¥4.83 billion, up 8.56% year-over-year; net profit: ¥1.29 billion, up 0.71%.

• Net cash flow from operating activities: ¥546 million, down 44.88% year-over-year due to increased material procurement and payroll.

• Total assets at period end: ¥18.92 billion, up 5.74% from year-end 2023; net assets: ¥14.65 billion, up 1.79%.

• Basic and diluted EPS: ¥0.96, up from ¥0.95 year-over-year.

• Gross margin and net margin remained stable; R&D expenses and management costs increased with business expansion.

Outlook and guidance

• Company continues to pursue "internationalization, diversification, and electrification" strategies, with ongoing investment in overseas capacity and new product development.

• The international R&D center is expected to be operational by year-end, supporting further innovation.

• Management expects continued growth in non-standard cylinders, non-excavator pumps/valves, and compact hydraulics, with further overseas market breakthroughs.