Shenzhen Kinwong Electronic (603228) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 5.87 billion, up 18.26% year-over-year; net profit attributable to shareholders was RMB 657 million, up 62.56% year-over-year.

• Gross margin and net margin improved significantly, driven by strong demand in high-end PCB products and effective cost control.

• The company maintained its position as a top global automotive PCB supplier and expanded market share in multiple segments.

• R&D investment increased 11.39% year-over-year, with notable breakthroughs in AI server, high-speed communication, and satellite communication PCB technologies.

Financial highlights

• Operating cash flow was RMB 1.15 billion, up 21.91% year-over-year.

• Net assets at period end were RMB 9.32 billion, up 6.15% from year-end 2023.

• Basic and diluted EPS were RMB 0.78, up 62.5% year-over-year.

• Gross margin improved as cost control and lean production initiatives took effect.

• Non-recurring gains totaled RMB 65.86 million, mainly from government grants.

Outlook and guidance

• The company will continue to increase R&D investment and accelerate high-end product development.

• Expansion projects in Jiangxi, Zhuhai, and Thailand are progressing, with new capacity expected to support future growth.

• Focus remains on digital transformation, green manufacturing, and talent development.