Wasion Holdings (3393) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 increased by 16% year-over-year to RMB 3,741.54 million, with net profit attributable to owners up 55% to RMB 331.03 million and EPS up 54% to 33.5 RMB cents.

• All three business segments—Power AMI, Communication and Fluid AMI, and ADO—achieved revenue growth, with Power AMI up 28%, Communication and Fluid AMI up 18%, and ADO up 2% year-over-year.

• Overseas business turnover rose 35% year-over-year to RMB 1,043.86 million, driven by strong performance in Asia, Africa, and the Americas, with new factories and expanded R&D centers supporting global growth.

• Gross profit increased 13% to RMB 1,327.73 million, with gross margin at 35.49%.

• No interim dividend was declared for the period.

Financial highlights

• Operating profit increased 43% year-over-year to RMB 623.31 million.

• Basic earnings per share rose to 33.5 RMB cents from 21.7 RMB cents year-over-year.

• Net profit margin attributable to owners improved to 8.8% from 6.6% year-over-year.

• EBITDA increased 35% year-over-year to RMB 768 million, with EBITDA margin improving to 21%.

• Interest coverage ratio increased to 9.94 from 6.96 year-over-year.

Outlook and guidance

• Power grid and non-power grid markets expected to remain main revenue sources, with stable growth anticipated in both domestic and overseas markets.

• Continued investment in R&D and digital transformation to drive future growth, especially in energy IoT, smart cities, and new energy sectors.

• Overseas expansion, especially in Latin America, Africa, and Asia, is a strategic focus, with local production and market-specific solutions.

• Policy support for digitalization, carbon reduction, and new energy integration expected to drive long-term growth.

• The group will prioritize R&D and integration of comprehensive energy metering and energy-saving management solutions, especially for microgrid scenarios.