Maxscend Microelectronics Company (300782) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥2.28 billion, up 37.20% year-over-year, while net profit attributable to shareholders was ¥354 million, down 3.32% from the same period last year.

• RF module sales surged, accounting for 42.29% of total revenue, with high-end and complex modules driving growth.

• The company continued to invest heavily in R&D, with expenses rising 94.22% year-over-year to ¥493 million, representing 21.58% of revenue.

• Cash flow from operations was negative at -¥289 million, mainly due to increased inventory and strategic investments.

Financial highlights

• Operating income: ¥2.28 billion, up 37.20% year-over-year.

• Net profit attributable to shareholders: ¥354 million, down 3.32% year-over-year.

• Gross margin: 42.12%, down 6.94 percentage points year-over-year.

• Basic EPS: ¥0.6637, down 3.35% year-over-year.

• Total assets: ¥13.13 billion, up 19.79% from year-end 2023.

Outlook and guidance

• RF module share of revenue is expected to continue rising, with high-end module penetration increasing.

• The company will focus on expanding high-value product lines and accelerating the marketization of advanced modules.

• Ongoing investment in R&D and manufacturing capacity to support long-term growth and competitiveness.