Suzhou Dongshan Precision Manufacturing Co (002384) Q2 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB16.63 billion, up 21.67% year-over-year, driven by growth in PCB and new energy businesses.

• Net profit attributable to shareholders was RMB560.6 million, down 32.01% year-over-year, impacted by lower non-recurring revenue, exchange rate fluctuations, and new product ramp-up costs.

• New energy business revenue rose 29.33% year-over-year to RMB3.81 billion, increasing its share of total revenue.

• Gross margin on LED display devices declined due to prior year price reductions, but operational efficiency improved.

• No cash dividends, bonus shares, or capital reserve conversions planned for the period.

Financial highlights

• Operating revenue: RMB16.63 billion (+21.67% YoY); net profit: RMB560.6 million (–32.01% YoY).

• Net profit after non-recurring items: RMB516.0 million (–10.66% YoY).

• Basic and diluted EPS: RMB0.33 (–31.25% YoY); weighted average ROE: 3.05% (–1.90pp YoY).

• Net cash flow from operating activities: RMB2.09 billion (–20.08% YoY).

• Total assets: RMB45.62 billion (+2.81% from end-2023); net assets: RMB18.17 billion (+0.16%).

Outlook and guidance

• Focus remains on expanding high-end PCB and precision component capacity for consumer electronics and new energy vehicles.

• Continued investment in R&D and digital transformation to drive innovation and operational efficiency.

• Strategic emphasis on global expansion and dual-core growth in consumer electronics and new energy vehicles.