Zhuhai Bojay Electronics (002975) H1 2024 earnings summary

Executive summary

• H1 revenue rose 26.57% YoY to RMB572.25m, supported by recovering orders, market expansion and stronger domestic sales.

• Attributable net income increased 109.60% YoY to RMB18.10m; adjusted for non-recurring items, attributable net income was RMB9.10m, up 102.25%.

• Profitability improved, but operating cash flow deteriorated sharply to -RMB212.67m as collections declined and cash procurement payments increased.

Financial highlights

• Operating revenue was RMB572.25m and operating costs were RMB314.03m, up 26.57% and 30.74% YoY, respectively.

• Consolidated net income was RMB14.78m versus a RMB1.00m loss YoY; profit attributable to shareholders was RMB18.10m versus RMB8.64m.

• Operating profit was RMB13.26m and profit before tax was RMB13.25m, compared with a RMB5.78m pretax loss in H1 2023.

• Revenue mix: industrial automation equipment RMB476.67m (+19.79% YoY); parts RMB45.19m (+52.41%); technical services RMB50.39m (+105.36%).

• Domestic revenue rose 60.14% to RMB341.12m; exports declined 3.34% to RMB231.13m.

Outlook and guidance

• European automotive smart-cockpit assembly and test line orders exceeded RMB30m, with shipment expected by year-end 2024.

• Semiconductor test equipment completed sample development and validation; 12-inch wafer dicing products passed customer testing and entered market expansion.

• MLCC equipment development is advancing across core processes; the second-generation high-speed stacking machine completed R&D and on-site customer capability testing.