Sinostar PEC (C9Q) H1 2024 earnings summary

Executive summary

• H1 revenue rose 33.5% YoY to RMB2,941.4m; net profit increased to RMB175.3m from RMB23.7m, driven mainly by higher gross profit.

• Q2 revenue increased 43.4% YoY to RMB1,475.1m and net profit reached RMB87.0m, versus RMB10.5m a year earlier.

Financial highlights

• H1 gross profit climbed to RMB266.9m from RMB61.1m; profit before tax was RMB234.5m versus RMB30.0m.

• H1 revenue was RMB2,941.4m, up 33.5% YoY; cost of sales rose 20.8% to RMB2,674.6m.

• H1 net profit attributable to equity holders was RMB125.5m; basic and diluted EPS were RMB19.61, versus RMB1.35 in H1 2023.

• Operating cash flow was RMB259.3m, compared with RMB32.0m in H1 2023; cash at period-end was RMB663.1m.

Outlook and guidance

• Performance over the next reporting period and 12 months may be affected by slower demand momentum and crude oil price volatility linked to geopolitics, supply-demand dynamics and international finance.

• Plans include managing supply-side risks, adjusting production to demand, investing in technology and R&D, increasing high-value-added products, and exploring green, low-carbon materials.

• No dividend was recommended for the current reporting period in view of operating and financial cash needs.