Zhuhai Bojay Electronics (002975) H1 2025 earnings summary

Executive summary

• H1 revenue rose 17.48% YoY to RMB 672.3m; attributable net income increased 11.55% to RMB 20.2m, while adjusted net income excluding non-recurring items grew 57.01% to RMB 14.3m.

• Growth spanned AI servers and cloud services, AI glasses, MLCC equipment, and automotive electronics; strategy also targets a shift from equipment supply toward precision components.

Financial highlights

• Revenue was RMB 672.3m, up 17.48% YoY; operating profit reached RMB 22.2m versus RMB 13.3m a year earlier.

• Attributable net income was RMB 20.2m, up 11.55% YoY; basic and diluted EPS were both RMB 0.14, up 7.69%.

• Adjusted net income excluding non-recurring items was RMB 14.3m, up 57.01% YoY; non-recurring gains totaled RMB 5.91m.

• Gross margin was 44.09%, down 0.27 percentage points YoY; industrial automation equipment margin was 41.69%, down 0.66 points.

• Operating cash flow was RMB 68.7m versus an outflow of RMB 212.7m in H1 2024; cash and cash equivalents rose RMB 66.2m to RMB 404.6m.

Outlook and guidance

• AI server demand remained a growth driver; G-customer orders doubled YoY, while N-customer full-year orders were expected to grow rapidly.

• Nearly RMB 100m in new AI-glasses testing and automation orders was secured from M customer for 2025; further market demand was anticipated as new products launch.

• The MLCC stacking machine passed prototype validation and obtained small-batch orders; management identified it as a potential growth driver as customer demand recovers.

• Automotive plans include pursuing incremental testing demand from next-generation robotaxis in H2; a European smart-cockpit line was undergoing installation and commissioning.

• Convertible-bond-funded consumer-electronics and semiconductor equipment projects remain under construction, with target readiness moved from Jan. 2025 to Jan. 2027.