Wasion Holdings (3393) H2 2024 earnings summary

Executive summary

• Achieved record revenue of RMB 8.72 billion in 2024, up 20% year-over-year, with net profit attributable to owners rising 35% to RMB 705.6 million and EPS up 35% to 71.4 RMB cents.

• All three business segments posted double-digit growth, with overseas revenue surging 50%.

• Final dividend per share increased 36% to 38 HKD cents, with a payout ratio of 50%.

Financial highlights

• Gross profit rose 18% to RMB 3.04 billion, EBITDA up 30% to RMB 1.65 billion, and net profit margin improved to 8.1%.

• Gross margin slightly decreased to 34.8% (down from 35.6%), while EBITDA margin increased to 19%.

• Receivable turnover period improved by 7 days to 218 days; inventory cycle shortened by 9 days to 80 days.

• Gearing ratio improved to 16% from 18%; return on equity increased to 13.0%.

• Cash and cash equivalents rose to RMB 2.79 billion.

Outlook and guidance

• Expects continued strong demand from State Grid and Southern Grid, with major investments in smart grid and new energy infrastructure planned for 2025.

• Focus on expanding international presence, especially in Southeast Asia, North America, South America, and Europe.

• Plans to accelerate R&D in IoT, chips, and AI, and deepen market penetration in smart cities, green energy, and digital infrastructure.