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658 — China High Speed Transmission Equipment News Story

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China's High Speed Transmission H1 revenue falls on lower deliveries

China's High Speed Transmission H1 revenue falls on lower deliveries


Overview

  • China wind and industrial gear maker's H1 revenue fell 25% yr/yr, profit rose 10%

  • Gross profit margin improved to 24.2% from 18.6% yr/yr


Outlook

  • Company did not provide specific financial guidance for the current quarter or full year in the press release


Result Drivers

  • LOWER WIND-GEAR DELIVERIES – Revenue fell 24.6%, mainly due to fewer wind gear transmission equipment deliveries and a shift toward higher-margin products

  • MARGIN EXPANSION – Gross margin rose 5.6 percentage points to 24.2%, driven by tighter cost control, higher-margin products and new-customer margins


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Net Income Attributable

RMB 32.9 mln


Analyst Coverage

  • The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Aug 26 - China's CGN New Energy H1 profit halves on weak wind projects

  • Aug 27 - China Saftower FY revenue hit by weak demand, loss narrows on cost cuts

  • Aug 26 - Switzerland's Gurit H1 sales rise 16% on Wind Materials unit strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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