Xingda International (1899) H1 2024 earnings summary

Executive summary

• Revenue rose 13.8% year-over-year to RMB6.17 billion for H1 2024, with gross profit up 17.7% to RMB1,208.7 million and gross margin improving to 19.6%.

• Profit attributable to owners was RMB192.2 million, nearly flat year-over-year, while net profit decreased 4.1% to RMB283.3 million.

• Basic EPS declined 10.9% to RMB10.31 cents; no interim dividend was declared.

• Sales volume increased 22.0% to 724,900 tonnes, with strong growth in radial tire cords for trucks (+20.9%) and passenger cars (+25.3%).

• Gross profit margin improved by 0.6pp to 19.6%, while EBITDA margin declined by 0.9pp to 14.1%.

Financial highlights

• EBITDA increased 7.3% year-over-year to RMB871.3 million.

• Net profit margin declined from 5.5% to 4.6% year-over-year.

• Bank balances and cash nearly doubled to RMB1,095.6 million as at 30 June 2024.

• Capital expenditure for property, plant, and equipment was RMB709.9 million.

• Borrowings increased 9.6% to RMB7,265.5 million; majority repayable within one year.

Outlook and guidance

• Domestic demand for semi-steel radial tire cord expected to benefit from government policies supporting new energy vehicles and auto consumption.

• Group remains cautious on all-steel tire cord sales in H2 2024 due to slower domestic logistics and higher inventory, but expects stable export demand.

• Focus on flexible production, innovation, and green product development to support sustainable growth.