Zhejiang Chint Electrics Co (601877) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 28.99 billion, up 4.08% year-over-year; net profit attributable to shareholders was RMB 1.92 billion, up 0.97% year-over-year.

• Cash flow from operating activities turned positive to RMB 4.59 billion from negative RMB 670 million in H1 2023.

• The company maintained its leading position in low-voltage electrical and new energy sectors, with strong channel, R&D, and cost advantages.

• Significant expansion in household PV installations, with over 6GW new capacity and 3GW of power stations sold in H1 2024.

Financial highlights

• Operating income: RMB 28.99 billion, up 4.08% year-over-year.

• Net profit attributable to shareholders: RMB 1.92 billion, up 0.97% year-over-year; adjusted for fair value changes, net profit was RMB 1.976 billion, up 3.88%.

• Basic and diluted EPS: RMB 0.90, up 1.12% year-over-year.

• Cash flow from operations: RMB 4.59 billion, a significant improvement from last year.

• R&D expenses increased 12.99% year-over-year to RMB 580.73 million.

Outlook and guidance

• The company expects continued growth in both domestic and global low-voltage electrical and PV markets, supported by macroeconomic recovery and strong industrial investment.

• Global PV demand is forecast to maintain high growth, with the company aiming to further expand international market share.