Shenzhen Envicool Technology (002837) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥1.16 billion, up 39.16% year-over-year; YTD revenue was ¥2.87 billion, up 38.61% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥169.29 million, up 43.06% year-over-year; YTD net profit was ¥352.76 million, up 67.79% year-over-year.

• Strong growth driven by increased sales of data center and cabinet temperature control energy-saving products.

Financial highlights

• Gross margin improved as revenue growth outpaced cost increases; operating profit for the period was ¥388.84 million.

• Basic and diluted EPS for Q3 were both ¥0.23, up 43.75% year-over-year; YTD EPS was ¥0.48, up 65.52%.

• Net cash flow from operating activities for Q3 was ¥156.23 million, up 570.91% year-over-year.

• Total assets at period end were ¥5.59 billion, up 9.74% from the previous year-end.

• Shareholders’ equity reached ¥2.79 billion, up 12.20% from year-end.

Outlook and guidance

• Continued focus on expanding energy-saving product lines and R&D investment to sustain growth.