Zhejiang Supor (002032) Q2 2024 earnings summary

Executive summary

• Operating income reached RMB 10.96 billion, up 9.84% year-over-year, with net profit attributable to shareholders rising 6.81% to RMB 940.59 million.

• Growth was driven by innovation, strong channel competitiveness, and a recovery in export demand.

• Domestic sales grew slightly and outperformed the industry, while export sales surged 38.78% due to rebounding demand in Europe and America.

• Maintained leading market share in core categories both online and offline, with significant growth in cookware and small domestic appliances.

Financial highlights

• Operating profit rose 6.49% year-over-year to RMB 1.17 billion.

• Basic and diluted EPS: RMB 1.181, up 7.66% and 7.85% respectively.

• Weighted average return on net assets: 15.45%, up 2.16 percentage points from last year.

• Gross margin for cookware: 26.99%; for electric appliances: 23.60%.

• Net cash flows from operating activities: RMB 548.52 million.

Outlook and guidance

• Domestic market expected to benefit from government 'trade-in' policies and product upgrades in the second half of 2024.

• Export business anticipated to continue growth as overseas demand rebounds.

• Focus on product innovation, channel expansion, and cost competitiveness to drive future growth.

• Core categories are expected to maintain or grow market share both online and offline.