Impro (1286.HK) 1H/2023 Revenue Up 9.7% Year-on-Year to HK$2,404.8 Million Profit Attributable to the Equity Shareholders of the Company Up 13.3% to HK$303.2 Million Interim Dividend of HK$0.08 per Share
- Written by The Bulletin
Insist on “Global Footprint”, “Diversified End-Market” and “Twin Growth Engines” as the Three Main Strategies Strong Operational Resilience and Unique Strengths to Confront Market Uncertainties
HONG KONG SAR - Media OutReach - 8 August 2023 - Impro Precision Industries Limited ("Impro Precision" or the "Group") (Stock Code: 1286), a world-leading manufacturer of high-precision, high-complexity and mission-critical components, today announced its interim results for the six months ended 30 June 2023 ("first half of 2023" or the "Period").In the first half of 2023, the revenue of the Group amounted to HK$2,404.8 million, representing an increase of 9.7% as compared to the same period last year. Profit attributable to equity shareholders of the Company amounted to HK$303.2 million, representing an increase of 13.3% as compared to the same period last year. Taking into account the Group's sound cash flow position and business prospects, the Group resolved to declare an interim dividend of HK$0.08 per share for the six months ended 30 June 2023.
During the Period, the aerospace, energy and medical end-markets experienced a strong growth, with revenue significantly increasing to HK$319.8 million, representing a year-on-year increase of 67.3%. The outstanding performance was mainly attributable to the recovery of global aerospace market, increased market share and the development and mass production of new products, coupled with significant increase in the sales revenue of aerospace and energy end-markets in the first half of this year driven by the strong sales growth of Foshan Ameriforge acquired last year.
In addition, the Group's diversified industrials business also maintained a solid growth. Revenue from this segment increased by 10.5% year-on-year to HK$1,184.1 million as compared to last year. Among which, revenue from construction equipment, high horsepower engine and agricultural equipment end-markets increased by 27.7%, 20.7% and 16.3% year-on-year, respectively, to HK$402.2 million, HK$251.8 million and HK$206.0 million, respectively. The high horsepower engine end-market mainly benefited from the increasing demand for large power equipment, while the increase in revenue from construction equipment and agricultural equipment end-markets was mainly attributable to the hydraulic orbital motor business acquired in the second half of last year as well as the increasing demand for construction equipment in the United States.
As the global economy emerges from the haze of the COVID-19 pandemic, a number of end-markets have gradually recovered, among which the aerospace and energy end-markets have rebounded with particularly strong momentum, further highlighting the Group's vision and advantages in strengthening its presence in the aerospace industry. During the COVID-19 pandemic, Impro has identified the development opportunity of the aerospace end-market and proactively established the "Aerotek Business Unit" to prepare for recovery. As the international aerospace market has fully resumed its normal operation and the number of competitors in the aerospace supply chain has greatly reduced, it is believed that the Group will be able to fully seize the recovery opportunity and sustain the significant growth of the aerospace end-market business. To promote the rapid development of the "Aerotek Business Unit", the Group is looking for suitable intermediary agencies to evaluate and define the business scope of the "Aerotek Business Unit", and plans to study the feasibility of spin-off and independent listing and the relevant pros and cons to the Group when its business development becomes more mature.
Looking forward to the second half of 2023, the global economy will remain exposed to a number of uncertainties. Demand in the European and American markets became volatile since second quarter due to high inflation and the ongoing Russia-Ukraine war, while the slowdown in the recovery of China's market from the second quarter put the Group's business under pressure. Fortunately, thanks to the success of its strategies of "Global Footprint" and "Diversified End-markets", the Group will be able to diversify its business and effectively protect itself against related risks. With its strong operation resilience and unique advantages, the Group remains confident in maintaining satisfactory growth in its business prospects. Yet, it will remain cautious about certain end-markets around the world. As of 31 July 2023, the Group's total order on hand to be fulfilled in the next twelve months reached HK$4,046 million, representing a year-on-year increase of 11.4%.
Mr. Lu Ruibo, Chairman and Chief Executive Officer of Impro, said, "Looking ahead, the Group will continue to leverage its manufacturing and sales network in Asia, Europe and the United States and, continue to expand its core businesses. Efforts will be made to capture market development opportunities and address challenges through the strategy of 'Global Footprint', 'Diversified End-Market', and 'Twin Growth Engine'. In addition, the Group will explore acquisition targets that can create synergy in an effort to expand its business. Apart from consolidating its leading position, the Group will also strive to provide customers with high-quality and diversified products and services and bring desirable returns to its shareholders. "
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