Zhejiang Sanhua Intelligent Controls Co. (002050) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥6.89 billion, up 6.82% year-over-year; YTD revenue was ¥20.56 billion, up 8.36% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥787 million, up 2.95% year-over-year; YTD net profit was ¥2.30 billion, up 6.59% year-over-year.

• Excluding non-recurring items, Q3 net profit was ¥721 million, down 4.53% year-over-year; YTD adjusted net profit was ¥2.25 billion, up 1.14% year-over-year.

• Operating cash flow for Q3 was ¥1.99 billion, down 15.66% year-over-year.

Financial highlights

• Gross margin for the first nine months was 28.6%, with operating profit at ¥2.76 billion.

• Basic and diluted EPS for Q3 were both ¥0.21, up 4.76% year-over-year; YTD EPS was ¥0.61, up 3.39% year-over-year.

• Total assets at Q3-end were ¥34.47 billion, up 8.08% from year-end 2023.

• Shareholders’ equity at Q3-end was ¥18.44 billion, up 3.07% from year-end 2023.

• Weighted average ROE for Q3 was 4.30%, down 0.42 percentage points year-over-year.

Outlook and guidance

• Management notes increased tax and management expenses due to higher staff compensation and land use taxes.

• Financial expenses rose due to lower foreign exchange gains.

• Government subsidies and investment income increased, partially offsetting cost pressures.