Vesync (2148) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was US$296.2 million, up 7.0% year-over-year, with gross profit of US$143.8 million (+14.9%) and profit attributable to owners of US$44.9 million (+37.5%).

• Gross profit margin improved by 3.3 percentage points to 48.5%, and profit margin increased to 15.1% from 11.8% year-over-year.

• Basic and diluted EPS were US4.13 cents, up over 42% year-over-year.

• Growth was driven by product innovation, channel and regional expansion, and improved operational efficiency.

• Non-Amazon channel revenue rose 46.5%, now 28.4% of total revenue.

Financial highlights

• Revenue: US$296.2 million (+7.0% YoY); Gross profit: US$143.8 million (+14.9% YoY); Gross margin: 48.5% (+3.3pp YoY).

• Net profit: US$44.9 million (+37.5% YoY); Basic EPS: US4.13 cents (2023: US2.89 cents).

• North America revenue: US$224.9 million (+13.0% YoY); Europe: US$53.2 million (–18.6% YoY); Asia: US$18.1 million (+43.4% YoY).

• Levoit brand revenue increased by US$47.1 million, driven by air purifiers, vacuum cleaners, and tower fans.

• Interim dividend declared: HK8.88 cents/share (US1.14 cents/share).

Outlook and guidance

• Focus on expanding non-Amazon channels, especially TikTok and mainstream retailers.

• Plans to launch new smart home and pet products and enhance VeSync App as a home IoT platform.

• Continued investment in technology and brand marketing to enhance consumer awareness and product portfolio.

• Aims to deepen market share in Europe and further invest in brand marketing and technology.