Earnings ImpactPricing pressure from downstream OEM, weaker cloud server, higher R&D expenses and interest costs are affecting net income.
Financial PerformanceIntron Tech reported 1H24 revenue of RMB 2.84bn (+8% YoY) and net profit of RMB 97.7mn (-37% YoY), both below consensus estimates, mainly due to the GPM decline to 15.9% on intensified competition and price pressure from auto OEM customers.
ProfitabilityGross profit margin was slightly below estimates due to intensified price competition from downstream OEMs.