Zhejiang Shuanghuan Driveline (002472) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥4.32 billion, up 17.3% year-over-year, with net profit attributable to shareholders at ¥473 million, a 23.3% increase year-over-year.

• Gross margin improved to 22.7% from 21.2% in H1 2023, reflecting better cost control and product mix.

• Operating cash flow was ¥808 million, up from ¥810 million in the prior year, indicating stable cash generation.

Financial highlights

• Operating income: ¥4.32 billion, up from ¥3.69 billion year-over-year.

• Net profit attributable to shareholders: ¥473 million, up from ¥383 million year-over-year.

• Basic and diluted EPS: ¥0.55, compared to ¥0.44 in H1 2023.

• Total assets: ¥14.11 billion as of June 30, 2024, up from ¥13.17 billion at year-end 2023.

• Net cash from operating activities: ¥808 million, stable year-over-year.

Outlook and guidance

• Management expects continued growth in automotive and industrial gear demand in H2 2024.

• Ongoing investments in capacity and R&D to support new product launches and market expansion.