Zhejiang Chint Electrics Co (601877) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 17.42 billion, up 17.96% year-over-year; net profit attributable to shareholders was RMB 1.58 billion, up 44.87% year-over-year.

• For the first nine months, revenue totaled RMB 46.41 billion, up 8.89% year-over-year; net profit attributable to shareholders was RMB 3.50 billion, up 16.93%.

• Excluding fair value changes of CTEC shares, adjusted net profit for the first nine months grew 11.80% year-over-year.

Financial highlights

• Gross margin improved as net profit growth outpaced revenue; basic and diluted EPS for Q3 were RMB 0.74, up 42.31% year-over-year.

• Operating cash flow for the first nine months was RMB 7.50 billion, up 360.37% year-over-year.

• Total assets at quarter-end were RMB 134.94 billion, up 11.70% from year-end 2023.

• Shareholders’ equity reached RMB 41.73 billion, up 6.76% from year-end 2023.

Outlook and guidance

• Profit growth mainly driven by revenue increase and positive fair value changes in investments.

• Cash flow improvement attributed to higher sales receipts and lower cash outflows for purchases.