Oppein Home Group (603833) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥8.58 billion, down 12.81% year-over-year due to weak real estate and consumer demand.

• Net profit attributable to shareholders was ¥989.68 million, a 12.61% decrease year-over-year.

• Gross margin improved to 32.15%, up 0.63 percentage points year-over-year; net margin was 11.53%.

• Retail channel revenue fell 23%, while whole-home and export channels grew 8.7% and 27% respectively.

• Company accelerated transformation to whole-home solutions and digitalization amid industry headwinds.

Financial highlights

• Operating cash flow was ¥1.25 billion, down 39.85% year-over-year due to lower cash from sales.

• Basic EPS was ¥1.62, down 12.90% year-over-year; diluted EPS was ¥1.59.

• Net assets attributable to shareholders at period end were ¥17.39 billion, down 4.02% from year-end 2023.

• Total assets reached ¥36.0 billion, up 4.82% from year-end 2023.

• Adjusted net profit (excluding non-recurring items) was ¥776 million, down 27.54% year-over-year.

Outlook and guidance

• Company expects continued pressure from real estate and consumer demand in H2 2024.

• Will continue to promote whole-home strategy, digital transformation, and cost control.

• Focus on channel reform, product innovation, and supporting dealers to stabilize performance.