OPT Machine Vision Tech (688686) H2 2024 earnings summary

Executive summary

• Revenue eased 3.44% YoY as lithium battery expansion slowed, 3C recovery remained muted and key orders shifted; semiconductor and automotive sales grew strongly.

• Profit fell faster than revenue amid higher R&D and overseas service investment, while the 2025 plan targets at least 20% revenue growth and profit growth no lower than revenue growth.

Financial highlights

• FY2024 revenue was RMB 911.37m, down 3.44% YoY; operating profit was RMB 129.63m versus RMB 200.90m in 2023.

• Net income attributable to shareholders was RMB 136.26m, down 29.66%; adjusted for non-recurring items, net income was RMB 116.00m, down 28.62%.

• Operating cash flow fell 95.96% to RMB 8.14m; year-end cash was RMB 237.75m versus RMB 653.86m a year earlier.

• Main-business gross margin was 63.63%, down 0.66 percentage points YoY; basic and diluted EPS were RMB 1.1148, down 29.70%.

• R&D expense rose 7.28% to RMB 216.96m, equal to 23.81% of revenue, up 2.38 percentage points YoY.

Outlook and guidance

• FY2025 target: revenue growth of at least 20% from FY2024; net income growth to be no lower than revenue growth. Targets are not an earnings forecast and depend on economic and market conditions.

• Priorities include higher R&D, cost and operating discipline, expanded semiconductor and automotive penetration, overseas sales and service, and greater sales of standardized products.

• Roadmap emphasizes industrial AI, 3D vision, sensors and motion products; a 2025 acquisition adds exposure to linear motors and motion components.