ShenZhen YUTO Packaging Technology (002831) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥7.35 billion, up 15.52% year-over-year, with net profit attributable to shareholders at ¥497 million, a 15.15% increase year-over-year.

• Gross margin remained stable, and the company maintained its position as a global leader in premium paper packaging, with strong market share in consumer electronics, high-end liquor, and tobacco sectors.

• The company continued to expand its global footprint, adding new subsidiaries in Mexico, Shandong, Anhui, and Wuhan, and invested in smart factory initiatives.

• A cash dividend of ¥3.30 per 10 shares (pre-tax) was proposed, with a total cash payout of ¥301.7 million.

Financial highlights

• Operating income: ¥7.35 billion, up 15.52% year-over-year.

• Net profit attributable to shareholders: ¥497 million, up 15.15% year-over-year.

• Basic and diluted EPS: ¥0.54, up 14.89% year-over-year.

• Operating cash flow: ¥1.29 billion, down 44.22% year-over-year due to increased procurement and labor costs.

• Gross margin for paper packaging: 24.02%, up 0.85 percentage points year-over-year.

Outlook and guidance

• The company aims to further consolidate its leading position in consumer electronics packaging, expand in cosmetics, luxury, food, and healthcare, and continue internationalization.

• Ongoing investment in smart manufacturing, R&D, and green packaging to drive sustainable growth.

• The Yibin smart packaging and bamboo pulp project timeline was extended to December 2025 due to macro environment and construction delays.