MeiG Smart Technology (002881) Q2 2024 earnings summary

Executive summary

• Achieved record half-year revenue of ¥1.31 billion, up 27.63% year-over-year, with Q2 revenue of ¥731 million, up 26.08% year-over-year and 27.27% sequentially.

• Net profit attributable to shareholders was ¥33.48 million, down 31.18% year-over-year, while adjusted net profit (excluding non-recurring items) rose 31.98% year-over-year.

• Overseas revenue grew 38.58% year-over-year, accounting for 33.73% of total revenue, while domestic revenue increased 22.69% year-over-year.

• Gross margin for the period was 16.59%, down 3.82 percentage points year-over-year, but Q2 margin improved sequentially to 17.30%.

Financial highlights

• Operating income: ¥1,305,551,460.81, up 27.63% year-over-year.

• Net profit attributable to shareholders: ¥33,482,328.84, down 31.18% year-over-year.

• Adjusted net profit (excluding non-recurring items): ¥31,929,268.36, up 31.98% year-over-year.

• Basic and diluted EPS: ¥0.13, down from ¥0.19 year-over-year.

• Operating cash flow: -¥50,319,764.17, compared to -¥17,906,415.54 last year.

• Total assets: ¥2,377,426,105.95, up 10.85% from year-end.

• Net assets attributable to shareholders: ¥1,464,065,701.93, down 1.13% from year-end.

Outlook and guidance

• Management expects continued growth in both domestic and overseas markets, with ongoing investment in 5G, AI, and high-compute modules.

• Gross margin is expected to gradually improve as product mix shifts toward higher-value solutions.

• R&D and market expansion will remain key focuses, especially in automotive, IoT, and FWA sectors.