Shanxi Installation Group (2520) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 11.59% YoY to RMB12,242.9m, led by specialized industrial construction; net profit increased 1.93% to RMB209.5m.

• Gross margin eased to 12.42% from 12.75%, while attributable net profit declined to RMB153.4m from RMB154.9m and basic EPS fell to RMB0.11 from RMB0.15.

Financial highlights

• Gross profit rose 8.66% to RMB1,520.4m; operating costs increased 12.02% to RMB10,722.5m as revenue expanded.

• Operating profit was RMB225.9m versus RMB238.3m; total profit was RMB224.8m versus RMB225.1m.

• R&D expense increased 33.9% to RMB593.4m, reflecting more R&D projects; management expense decreased 8.94% to RMB470.5m.

Outlook and guidance

• 2025 priorities include quality improvement, organizational and technological empowerment, strategic planning for the 15th Five-Year Plan, and stronger project lifecycle and cost management.

• Strategic focus includes petrochemicals, municipal projects, wind and photovoltaic power, new energy storage, hydrogen, ammonia and methanol, and overseas expansion.

• Planned transformation initiatives include clean heating, solid waste treatment, distributed energy, zero-carbon parks, and water-environment projects.