CROSBY Research – Wasion Holdings (3393 HK/ BUY): A solid set of 1H24 results with strong overseas sales

29 August 2024

Wasion’s 1H24 turnover increased by 16.0% YoY to Rmb3.7bn while NP increased by 54.8% YoY to Rmb331.0m. In 1H24, sales of Wasion’s power AMI/ communication and fluid (C&F) AMI/ ADO, all recorded growth of 28.0%/17.5%/2.4% to Rmb1.5bn/ Rmb1.2bn/ Rmb1.1bn, accounting for 38.8%/30.8%/30.4% of total sales, respectively. Due to the increase in materials costs and change in product mix with higher contribution from lower margin products, GPM eased down marginally by 1ppt to 35.5%.