Zhejiang Wanfeng Auto Wheel (002085) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥7.37 billion, down 1.80% year-over-year; net profit attributable to shareholders rose 24.93% to ¥398 million.

• Excluding the impact of Wuxi Xionghui business in the prior year, revenue grew 4.32% year-over-year.

• Automotive lightweight metal parts business contributed ¥6.09 billion in revenue (down 2.22%); general aviation aircraft manufacturing contributed ¥1.28 billion (up 0.22%).

• Cash flow from operations dropped 61.70% year-over-year to ¥485 million.

Financial highlights

• Gross margin for H1 2024 was 18.49%, down 2.39 percentage points year-over-year.

• Basic and diluted EPS were ¥0.19, up from ¥0.15 year-over-year.

• Net assets attributable to shareholders at period end were ¥6.72 billion, down 0.14% from year-end 2023.

• R&D investment increased 10.81% year-over-year to ¥241 million.

• Financial expenses fell 57.83% year-over-year due to lower bank loan interest and higher exchange gains.

Outlook and guidance

• The company expects continued growth in new energy vehicle and low-altitude economy sectors, with ongoing investment in lightweight materials and electric aircraft R&D.

• Plans to deepen cooperation with core new energy customers and expand applications of large magnesium alloy castings.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.