Rigol Technologies (688337) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 15.7% YoY to RMB775.8m, while net income fell 14.5% to RMB92.3m; stronger core-platform and solutions sales supported growth.

• Gross margin improved 310 bps to 59.14%, but higher R&D and administrative spending and a one-off VAT input-tax reversal weighed on earnings.

• Strategy is shifting toward high-end instruments and integrated solutions, reinforced by the full acquisition of Naisu Electronics and expanded R&D investment.

Financial highlights

• FY2024 revenue was RMB775.8m, up 15.7% YoY; operating profit was RMB93.5m versus RMB114.6m in 2023.

• Net income was RMB92.3m, down 14.5% YoY; adjusted for non-recurring items, net income was RMB58.3m, down 2.75%.

• Q4 revenue was RMB240.9m and net income RMB32.2m; Q4 adjusted net income was RMB36.1m.

• Operating cash flow turned positive at RMB117.5m from an outflow of RMB18.4m; investing cash outflow was RMB177.3m and financing cash inflow RMB201.3m.

• A RMB16.0m VAT input-tax reversal at Beijing Rigol reduced FY attributable net income by an estimated RMB13.6m.

Outlook and guidance

• 2025 priorities include self-developed, high-end and platform-based products, with planned launches across instruments and solutions; no numerical revenue or earnings target was stated.

• R&D plans focus on communications, new energy and semiconductors, modular instruments, platform software, microwave/RF technology, and development-center projects in Shanghai and Xi’an.

• Market deployment plans include strengthening direct sales in developed markets and expanding local sales presence in Southeast Asia, South Asia and South America.

• Plans include completing the Malaysia production-base buildout and pursuing strategic acquisitions aligned with the core testing-and-measurement business.