股票研究 /[Table_Date] 2025.05.30 布局机器人与 AI 服务器液冷 德昌电机控股(0179) ——德昌电机控股 2025 财年年报点评 | [table_Authors] 刘一鸣(分析师) | 石佳艺(研究助理) | 张予名(研究助理) | [当前价格 | | | --- | --- | --- | --- | --- | | | | | Table_CurPrice] (港元)： | 19.98 | | 021-38676666 | 021-38676666 | 021-38676666 | | | | 登记编号 S0880525040050 | S0880125042878 | S0880125042241 | [Table_Market] 交易数据 | | 本报告导读： 风险提示：新能源车销量不及预期；原材料价格大幅上涨。 -40% -20% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 52周内股价走势图 德昌电机控股 恒生指数 证 券 研 究 报 告 | 营业收入 | 3647 | 3815 | 3648 | 3983 | 4351 ...

Key Financial Highlights FY24/25 Annual Results For the year ended 31 March 2025 Investor Briefing May 2025 FY24/25 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation… Page 2 Overview Products Group Automotive APG provides motion-related components for all vehicle types. We are well-placed to capitalize on expanding New Energy Vehicle (NEV) markets IPG serves a wide range of industr ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之 任何損失承擔任何責任。 Johnson Electric Holdings Limited 德昌電機控股有限公司 （在百慕達註冊成立之有限公司） （股份代號 : 179） 截至 2025 年 3 月 31 日止年度 全年業績公告 摘 要 1 * • 集團營業額 3,648 百萬美元 ，較去年下跌 4% • 毛利 843 百萬美元，或佔營業額的 23.1% （對比去年為 851 百萬美元，或佔營業額的 22.3%） • 經調整未計利息、稅項及攤銷前盈利為 344 百萬美元 ，或佔營業額的 9.4% （對比去年為 343 百 萬美元，或佔營業額的 9.0%） • 股東應佔溢利淨額 263 百萬美元，較去年上升 15% • 已調整撇除非現金外匯變動和重組費用，基本淨溢利 274 百萬美元，上升 9% • 經營所得之自由現金流量為 286 百萬美元，對比去年為 422 百萬美元 • 建議末期股息每股 44 港仙（5.64 美仙） • 於 ...

Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [13]. Core Insights - The company is a global leader in micro-motor manufacturing and is expanding into the humanoid robot sector, which is expected to open a second growth curve [11][12]. - The company has a strong market position in the automotive micro-motor sector, holding the second-largest global market share at 14.1% as of 2021 [8][9]. - The company has experienced stable revenue, with a focus on automation and high-growth business expansion, despite a slight decline in revenue for the first half of the 2024/2025 fiscal year [9][10]. Summary by Sections Company Overview - Founded in 1959, the company has evolved from a family business focused on toy micro-motors to a leading manufacturer in various sectors including automotive, home appliances, and industrial automation [5][6]. - The company has expanded internationally, establishing a presence in key markets such as the U.S., Japan, and Germany [6]. Business Expansion - The company has pursued acquisitions to enhance its global footprint, acquiring several firms to broaden its product offerings and customer base [6]. - It has established over 30 production bases worldwide, leveraging its supply chain advantages in China to drive growth in automotive electrification and intelligence [8]. Financial Performance - For the first half of the 2024/2025 fiscal year, the company reported total revenue of $1.85 billion, a year-on-year decrease of 4.3% [9]. - The automotive segment remains the primary revenue source, with a revenue contribution of $1.57 billion, while industrial products contributed $290 million [9]. Profitability - The company's gross margin improved to 23.6% in the first half of the 2024/2025 fiscal year, up 1.4 percentage points year-on-year, driven by lower raw material costs and enhanced automation [10]. - Net profit attributable to the parent company increased by 9.5% year-on-year to $130 million [10]. Future Outlook - The company is actively exploring opportunities in the humanoid robot sector, aiming to develop core components and establish strategic partnerships [11][12]. - Revenue projections for 2025-2027 are estimated at $3.62 billion, $3.85 billion, and $4.12 billion, respectively, with expected EPS of $0.25, $0.27, and $0.29 [13].

Investment Rating - The report assigns a "Buy" investment rating for the company, indicating a positive outlook for its stock performance [13]. Core Insights - The company is a global leader in micro-motor manufacturing and is expanding into the humanoid robotics sector, which is expected to open a new growth avenue [11][12]. - The company has a strong market presence in the automotive and industrial sectors, with a global market share of 14.1% in automotive micro-motors, ranking second worldwide [8][9]. - The company has shown stable revenue performance, with a focus on automation and high-growth business expansion, despite a slight decline in revenue due to market conditions [9][10]. Summary by Sections Company Overview - Founded in 1959, the company has evolved from a family business focused on toy micro-motors to a leading manufacturer in various sectors including automotive, home appliances, and industrial automation [5][6]. - The company has expanded internationally, establishing a presence in key markets such as the U.S., Japan, and Europe, and has made several strategic acquisitions to enhance its capabilities [6]. Market Position - The company has a robust R&D team of over 1,600 personnel and serves approximately 400 automotive clients and 1,100 industrial clients, producing over 4 million motors daily [8][9]. - The automotive product lines include thermal management systems, drive-by-wire systems, and various electric motors, contributing significantly to the company's revenue [8]. Financial Performance - For the first half of the 2024/2025 fiscal year, the company reported total revenue of $1.85 billion, a year-on-year decrease of 4.3% [9]. - The automotive segment remains the primary revenue source, with a revenue contribution of $1.57 billion, while industrial products contributed $290 million [9]. - The company's gross margin improved to 23.6% due to lower raw material costs and enhanced automation, leading to a net profit of $130 million, up 9.5% year-on-year [10]. Future Growth Prospects - The company is actively exploring opportunities in the humanoid robotics sector, aiming to develop core components and establish strategic partnerships [11][12]. - The revenue forecast for 2025-2027 indicates a gradual recovery and growth, with projected revenues of $3.62 billion in 2025 and $4.12 billion in 2027 [13][15].

Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Insights - The company, 德昌电机控股, is actively exploring applications for humanoid robots and aims to leverage its expertise in drive systems to tap into high-growth markets [8] - The automotive sector is a key growth area, with revenue from automotive products expected to grow at a rate of 10% annually over the next three fiscal years [9] - The company forecasts revenue growth from $3.814 billion in 2024 to $4.939 billion in 2027, with net profit increasing from $229 million to $396 million during the same period [7][11] Financial Performance and Forecast - Revenue projections for the company are as follows: - 2023: $3.647 billion - 2024: $3.815 billion (YoY growth of 6%) - 2025: $4.135 billion (YoY growth of 8%) - 2026: $4.519 billion (YoY growth of 9%) - 2027: $4.939 billion (YoY growth of 9%) [7] - Net profit estimates are: - 2023: $158 million - 2024: $229 million (YoY growth of 45%) - 2025: $295 million (YoY growth of 29%) - 2026: $352 million (YoY growth of 19%) - 2027: $396 million (YoY growth of 12%) [7] - Earnings per share (EPS) are projected to increase from $0.17 in 2023 to $0.42 in 2027 [7] Market Performance - The automotive product revenue for the fiscal year 2024 is expected to reach $3.210 billion, reflecting a 10.2% increase [11] - The company has reported a 10% revenue growth in the Asia-Pacific region for automotive products, outperforming the regional light vehicle production growth of 8% [9] - In the Americas, automotive product revenue is projected to grow by 9%, exceeding the estimated 6% increase in vehicle production [9] Valuation - The company is assigned a price-to-earnings (PE) ratio range of 8 to 10 times for 2025, leading to a fair value range of HKD 19.69 to HKD 24.61 [8]

Financial Performance - Group revenue for the first half of the fiscal year 2024 was $1,854 million, a decrease of 4% compared to the same period last year[4]. - Gross profit was $438 million, representing 23.6% of revenue, up from 22.2% in the previous year[4]. - Adjusted EBITDA was $177 million, or 9.5% of revenue, compared to 9.3% in the previous year[4]. - Net profit attributable to shareholders increased by 8% to $130 million, or $0.1392 per share[4]. - Basic net profit rose by 3% to $133 million, excluding unrealized gains or losses related to exchange rate fluctuations[4]. - Revenue for the first half of the 24/25 fiscal year decreased by $82.9 million or 4% to $1,854.2 million, compared to $1,937.1 million in the same period of the previous fiscal year[23]. - Shareholders' profit for the first half of fiscal year 24/25 was $129.6 million, an increase of 9.5% from $120.1 million in the same period of the previous year[41]. - The company reported a revenue of $1,854,168 thousand for the six months ended September 30, 2024, a decrease of 4.3% compared to $1,937,056 thousand for the same period in 2023[154]. - Gross profit for the same period was $438,051 thousand, reflecting an increase of 1.1% from $429,579 thousand year-over-year[131]. - The operating profit was $157,854 thousand, up from $151,459 thousand, indicating a growth of 4.3%[131]. Segment Performance - The automotive segment accounted for 84% of total revenue, with a 3% decline in revenue at constant exchange rates, aligning with the overall decline in global light vehicle production[7]. - The commercial products segment represented 16% of total revenue, with a 9% decline in revenue at constant exchange rates[11]. - The automotive product segment's revenue decreased by 3% to $1,564.4 million, representing 84% of total revenue[29]. - The industrial products segment's revenue decreased by 9% in the first half of fiscal year 24/25, accounting for 16% of total group revenue[37]. - For the first half of the fiscal year 24/25, the automotive product segment's revenue decreased by 3% overall, with specific regional declines of 1% in Asia-Pacific, 3% in Europe, and 5% in the Americas[34]. Cash Flow and Debt Management - Free cash flow from operating activities was $144 million, down from $208 million in the previous year[4]. - Cash balance as of September 30, 2024, was $688 million, down from $809.9 million in March 2024[21]. - The company generated free cash flow of $144.4 million in the first half of the fiscal year 24/25, a decrease of 63.6 million compared to $208.0 million in the first half of the fiscal year 23/24[54]. - The company repaid net debt of $203.8 million in the first half of the fiscal year 24/25, compared to $103.3 million in the same period last year[56]. - Total debt decreased by $204.3 million to $356.5 million as of September 30, 2024[65]. - The total debt-to-capital ratio improved to 12% as of September 30, 2024, down from 18% in March 2024[21]. - The company has $947.8 million in available and undrawn credit facilities as of September 30, 2024[63]. Dividends and Shareholder Returns - The company declared an interim dividend of HK$0.17 per share, equivalent to $0.0218 per share, to be paid on January 8, 2025[15]. - The company paid dividends totaling $52.1 million in the first half of the fiscal year 24/25, compared to $37.4 million in the same period last year[56]. - The company announced an interim dividend of HKD 0.17 per share, consistent with the previous year[122]. Inventory and Working Capital - Inventory increased by $37.5 million to $589.0 million as of September 30, 2024, to meet fluctuating customer demand and delivery times[51]. - The total operating working capital increased from $669.3 million as of March 31, 2024, to $699.6 million as of September 30, 2024[51]. - The average days inventory increased from 68 days to 75 days, reflecting adjustments to inventory levels in response to demand trends[51]. Foreign Exchange and Commodity Risks - Foreign exchange fluctuations contributed an increase of $15.8 million to adjusted net profit, primarily due to changes in the Euro and Renminbi during the period compared to the first half of the fiscal year 23/24[46]. - The company faces commodity price risk mainly from fluctuations in copper, steel, silver, and aluminum prices, which are managed through appropriate contract terms and cash flow hedging[94]. - The company hedges foreign exchange risks through forward contracts and structured contracts, with contracts maturing between 1 to 48 months[80]. - The company has fixed-price procurement contracts for steel with different maturities ranging from 1 to 39 months to mitigate price risks[94]. Strategic Outlook - The company remains cautiously optimistic about sales recovery in the second half of the fiscal year, driven by planned new product launches and inventory replenishment[16]. - The company will continue to focus on core strategies, including innovative technology solutions and optimizing global manufacturing to enhance resilience against external shocks[18]. - The company is focusing resources on segments with the most promising long-term growth potential, despite some markets still facing declines[37]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the provided content[140]. - The company’s strategy includes potential acquisitions and partnerships to enhance market presence and product offerings, as indicated in the overall financial strategy[140]. Shareholder Structure and Equity - As of September 30, 2024, the major shareholders include Wang Gu Yizhen with 532,889,010 shares (57.02%), Deltec Bank & Trust Limited with 221,760,000 shares (23.73%), and HSBC International Trustee Limited with 217,070,710 shares (23.23%) [110]. - The company's equity attributable to shareholders increased to $2,632,688 thousand as of September 30, 2024, up from $2,596,667 thousand at the end of March 2024[138]. - The total comprehensive income attributable to shareholders was $136,398 thousand, compared to $38,978 thousand in the prior period, indicating a substantial growth[138]. Financial Assets and Liabilities - The total accounts receivable, net of impairment, was $670,802 thousand as of September 30, 2024, compared to $654,155 thousand as of March 31, 2024[199]. - The net amount of financial assets and liabilities as of September 30, 2024, was $134,111 thousand, down from $163,192 thousand on March 31, 2024, reflecting a decrease of approximately 17.8%[170]. - The company had outstanding contracts for copper, silver, aluminum, and iron ore with a total estimated future cash flow of $20.5 million as of September 30, 2024[173].

Financial Performance - The group's revenue for the six months ended September 30, 2024, was $1,854 million, a decrease of 4% compared to the same period last year[3]. - Gross profit was $438 million, representing a gross margin of 23.6%, up from 22.2% in the previous year[3]. - Adjusted EBITDA was $177 million, or 9.5% of revenue, compared to 9.3% in the previous year[3]. - Net profit attributable to shareholders increased by 8% to $130 million, or $0.1392 per share[3]. - Free cash flow from operations was $144 million, down from $208 million in the previous year[3]. - Revenue for the first half of the fiscal year 24/25 decreased by $82.9 million or 4% to $1,854.2 million compared to $1,937.1 million in the first half of the fiscal year 23/24[22]. - Shareholders' profit for the first half of fiscal year 24/25 was $129.6 million, an increase of 9.5 million from $120.1 million in the same period of fiscal year 23/24[36]. - The gross profit margin for the first half of fiscal year 24/25 was 23.6%, compared to 22.2% in the previous year[34]. - Adjusted net profit margin for the first half of fiscal year 24/25 was 7.2%, up from 6.7% in the previous year[37]. - The company reported a profit of $131,191 thousand for the six months ended September 30, 2024, an increase of 7.1% compared to $121,826 thousand for the same period in 2023[130]. Segment Performance - The automotive segment accounted for 84% of total revenue, with a 3% decline in revenue at constant exchange rates, aligning with the overall decline in global light vehicle production[6]. - The industrial products segment represented 16% of total revenue, with a 9% decline in revenue at constant exchange rates, reflecting ongoing operational challenges[10]. - Automotive product segment revenue decreased by 3% to $1,564.4 million, accounting for 84% of total group revenue[26]. - Industrial product segment revenue also declined by 9% to $289.8 million, representing 16% of total group revenue[22]. - For the first half of the fiscal year 24/25, the automotive product segment's revenue decreased by 3% overall, with specific declines of 1% in Asia-Pacific, 3% in Europe, and 5% in the Americas[29]. - The industrial products segment's revenue decreased by 9% in the first half of fiscal year 24/25, with a 5% increase in Asia-Pacific offsetting declines in Europe and the Americas[31]. Cash Flow and Debt Management - The total debt-to-capital ratio as of September 30, 2024, was 12%, with cash reserves of $688 million[3]. - Net cash as of September 30, 2024, was $331.2 million, an increase from $249.1 million on March 31, 2024[20]. - Total debt decreased to $356.5 million from $560.8 million, resulting in a debt-to-capital ratio of 12% compared to 18% previously[20]. - The group generated a free cash flow of $144.4 million in the first half of the fiscal year 24/25, down from $208.0 million in the same period of the fiscal year 23/24[49]. - The group reported a net cash flow decrease of $62.2 million for the period, compared to an increase of $31.5 million in the previous year[49]. - Total debt decreased to $356.5 million as of September 30, 2024, down from $560.8 million on March 31, 2024, representing a reduction of $204.3 million[61]. - The debt-to-capital ratio improved to 12% as of September 30, 2024, compared to 18% on March 31, 2024, indicating a stronger capital structure[68]. Dividends and Shareholder Returns - The company announced an interim dividend of HKD 0.17 per share, equivalent to USD 0.0218 per share[15]. - The company declared a final dividend of 44 HK cents per share, amounting to $52.1 million, compared to a final dividend of 34 HK cents per share, totaling $40.0 million for the previous fiscal year[68]. - The group paid dividends totaling $52.1 million in the first half of fiscal year 24/25, compared to $37.4 million in the same period of the previous year[51]. Market Outlook and Strategic Focus - The company remains cautiously optimistic about sales recovery in the second half of the fiscal year, driven by new product launches and inventory replenishment[16]. - Ongoing macroeconomic uncertainties and consumer confidence issues are highlighted as significant risks to sales outlook[18]. - The company will continue to focus on core strategies, including innovation in technology solutions and optimization of global manufacturing[18]. - The company is focusing resources on segments with the most promising long-term growth potential, despite some markets still facing declines[31]. Inventory and Receivables Management - Inventory increased to $589.0 million as of September 30, 2024, reflecting a strategy to meet fluctuating customer demand and delivery times[44]. - Accounts receivable increased to $788.9 million, indicating a focus on maintaining high-quality receivables[44]. - Days sales outstanding for accounts receivable increased to 86 days as of March 31, 2024, from 75 days as of September 30, 2024[44]. - The company is continuously evaluating demand trends and inventory data to optimize inventory levels[44]. Foreign Exchange and Commodity Management - The company reported a net gain of $15.8 million from foreign exchange fluctuations, primarily due to changes in the euro and renminbi[40]. - The company continues to manage commodity price risks through cash flow hedging contracts, with various expiration dates ranging from 1 to 39 months as of September 30, 2024[84]. - The company has hedged its production costs and operational expenses in various currencies, including the euro, Chinese yuan, and Mexican peso, to mitigate foreign exchange risks[183]. - The estimated future cash flow benefit from commodity and foreign exchange contracts is approximately $149 million as of September 30, 2024, down from $198 million as of March 31, 2024[199]. Shareholder Structure and Governance - As of September 30, 2024, the company has a significant shareholder, Wang Gu Yizhen, holding 532,889,010 shares, representing 57.03% of the total equity[99]. - Deltec Bank & Trust Limited holds 221,760,000 shares, accounting for 23.73% of the total equity[102]. - HSBC International Trustee Limited owns 217,070,710 shares, which is 23.23% of the total equity[102]. - The company remains committed to high corporate governance standards to safeguard and enhance stakeholder interests[91].

Financial Performance - Total revenue for the year reached $3.8 billion, with a net profit of $229 million[2] - Total revenue for the fiscal year ending March 31, 2024, was $3,814 million, a 5% increase year-over-year[17] - Gross profit rose by 19% to $851 million[17] - Adjusted EBITDA increased by 56% to $343 million, representing 9.0% of revenue (compared to 6.0% in the previous fiscal year)[17] - Net profit attributable to shareholders surged by 45% to $229 million[17] - Adjusted net profit, excluding non-cash foreign exchange movements and restructuring costs, rose by 70% to $252 million[17] - Free cash flow from operations was $422 million, compared to $215 million in the previous year[17] - Revenue for the 23/24 fiscal year increased by $168.1 million or 5% to $3,814.2 million (22/23 fiscal year: $3,646.1 million)[58] - Gross profit for the 23/24 fiscal year was $850.7 million, with a gross margin of 22.3%, up from 19.6% in the previous fiscal year[57] - Adjusted EBITA for the 23/24 fiscal year was $342.8 million, representing 9.0% of revenue, compared to $220.1 million and 6.0% in the 22/23 fiscal year[57] - Net profit attributable to shareholders for the 23/24 fiscal year was $229.2 million, up from $157.8 million in the previous fiscal year[57] - Free cash flow from operations for the 23/24 fiscal year was $422.4 million, nearly double the $214.8 million in the 22/23 fiscal year[57] - Cash and cash equivalents as of March 31, 2024, were $809.9 million, compared to $408.7 million as of March 31, 2023[57] - Total debt as of March 31, 2024, was $560.8 million, up from $474.0 million as of March 31, 2023[57] - The company's market capitalization as of March 31, 2024, was $1,294.6 million, up from $1,052.9 million as of March 31, 2023[57] - Adjusted EBITDA increased to $343 million, representing 9.0% of revenue, up from 6.0% last year[19] - Net profit attributable to shareholders rose by 45% to $229 million, with basic net profit at $252 million compared to $148 million last year[19] - The company's gross profit increased by 19% to $851 million, with gross margin improving from 19.6% to 22.3%[19] - Free cash flow from operations for the fiscal year totaled $422 million, with year-end cash reserves at $810 million[19] - Total debt to capital ratio stood at 18%, indicating a strong financial position[19] - The company proposed a final dividend of 44 HK cents per share (5.64 US cents), bringing the total dividend for the year to a 20% increase compared to the previous year[17] - The board recommended a final dividend of 44 HK cents per share, bringing the total annual dividend to 61 HK cents per share, a 20% increase from the previous year[19] - Final dividend for FY23/24 proposed at 44 HK cents per share, equivalent to $51.9 million, compared to 34 HK cents per share in FY22/23[91] - Interim dividend for FY23/24 maintained at 17 HK cents per share, equivalent to $20.1 million, with $15.0 million paid in cash and $5.1 million settled through issuance of new shares[91] Revenue Distribution and Market Performance - The company operates in 22 countries across 4 continents, serving 1,600 customers[2] - Automotive product group accounted for 84% of total revenue, while industrial and commercial products made up 16%[3] - Revenue distribution by region: Americas 34%, Asia-Pacific 35%, Europe, Middle East, and Africa 31%[3] - The Automotive Products Group, the largest operating segment, achieved revenue of $3,210 million, a 10% increase at constant exchange rates[17] - Revenue in the Asia-Pacific region for the Automotive Products Group grew by 10% at constant exchange rates, with light vehicle production in the region increasing by approximately 8%[17] - Automotive product group revenue increased by 10% to $3,216.9 million in FY23/24, contributing 84% of total group revenue[59][61] - Industrial product group revenue decreased by 19% to $594.9 million in FY23/24, accounting for 16% of total group revenue[59][63] - Group revenue increased by 5% to $3,814.2 million in FY23/24, with a $165.7 million increase from volume/mix and pricing[59][60] - Asia Pacific automotive revenue grew 10%, outperforming the region's 8% increase in light vehicle production[61] - Europe, Middle East & Africa automotive revenue increased 13%, compared to 7% growth in regional light vehicle production[61] - Americas automotive revenue rose 9%, exceeding the region's 6% light vehicle production growth[61] - Industrial product group revenue declined across all regions, with the steepest drop of 24% in Europe, Middle East & Africa[64][65] - Acquisition of Pendix GmbH contributed $6.7 million to group revenue in FY23/24[60] - Foreign exchange impact reduced group revenue by $4.3 million, with EUR strengthening offset by CNY and CAD weakening[60] Operational and Production Highlights - Daily production exceeds 4 million units of motor and drive-related products[2] - The company employs over 30,000 staff globally, including 1,600 engineers[2] - Strategic focus areas include innovation, investment in automation and digitalization, and building a flexible global production network[12] - The company has completed over a dozen acquisitions in the past two decades to complement technology and strengthen market position[13] - Key priorities include expanding market share in segment markets and maintaining competitive advantages[16] - The company expects low single-digit growth in sales for the 24/25 fiscal year, with a focus on expanding AI-driven quality assurance software[19] - The company is developing advanced integrated thermal management systems for electric vehicles, combining motors, valves, and pumps to optimize battery performance[19] - The company is increasing the use of digital tools and AI software in production and business support functions to enhance decision-making and operational efficiency[19] - TrueDrive DZC technology increases warehouse conveyor throughput by up to 250% and ensures 100% full-speed operation year-round[23] - VersaSort module enables precise sorting of packages as small as 50mm x 38mm[23] - The new lattice light-sheet microscope, powered by Nanomotion's motor expertise, operates at speeds ranging from 200 micrometers to 200 nanometers per second, capturing high-definition images of cellular behavior[25] - The Osprey lightweight electric oil pump for eAxles reduces product weight by 30% by replacing traditional aluminum with lighter plastic materials[29] - The integrated thermal management system (ITMS) for electric vehicles is 25% lighter and 30% smaller in volume compared to traditional systems, extending EV range by up to 20%[31] - The Power Door Opening (PDO) motor for electric vehicles enhances aerodynamics and reduces weight, extending EV range by an additional 5-10 kilometers[33] Sustainability and Environmental Initiatives - The company has reduced absolute carbon emissions by 53% compared to the baseline, exceeding its 2030 target[40] - Renewable energy now accounts for 44% of the company's total energy consumption[40] - The company aims to achieve a 42% reduction in Scope 1 and 2 carbon emissions by 2030 and net-zero emissions across the value chain by 2050[41] - The company plans to reduce water intensity by 30% by the 25/26 fiscal year compared to the 20/21 baseline[43] - The company maintains zero waste to landfill across its operations and aims to reduce total waste intensity by 10% and hazardous waste intensity by 20% by the 25/26 fiscal year[42] - All manufacturing facilities are ISO 14001 certified, and 11 operational facilities hold ISO 50001 certification[44] - The company has installed solar panels at its Zacatecas, Mexico facility, expected to cover 11% of the plant's electricity consumption[45] - The company has increased its renewable energy share in the energy mix to 44% and reduced energy, waste, and water intensity[40] - The company is committed to using 100% renewable energy for all operations by 2025 where feasible[41] - The company has set clear targets to reduce CO2 emissions, increase the use of renewable energy, and improve energy efficiency in its operations[122] - The company is assessing the carbon footprint of its value chain and plans to set CO2 reduction targets in this area[122] - The company is implementing site-specific plans to monitor and reduce waste generation, water consumption, and emissions, aiming to minimize ecological impact[122] - The company is evaluating the sustainability performance of its key suppliers to ensure supply chain sustainability[122] - The company is assessing vulnerabilities to climate change and extreme weather events, exploring adaptation measures to enhance climate resilience[122] - The company is designing eco-friendly products and processes that consume minimal resources and energy during manufacturing and use[122] - The company is conducting product carbon footprint and lifecycle assessments to ensure sustainability[122] - The company has reduced Scope 1 and Scope 2 carbon emissions by 53% compared to the 20/21 fiscal year baseline, exceeding the short-term target of a 42% reduction by 2030[136] - The company now uses 44% renewable energy, more than double the 22% from the previous year, with significant increases in Asia (24% to 55%) and the Americas (18% to 91%)[137] - The company aims to use 100% renewable energy for all operations by 2025 where feasible and reduce energy intensity per sales by 15% by 2030 compared to the 19/20 fiscal year baseline[136] - The company has achieved zero waste to landfill for the second consecutive year in the 23/24 fiscal year, with a 7% reduction in waste intensity per sales compared to the 20/21 fiscal year baseline[140] - The company has reduced water intake intensity by 21% and water consumption intensity by 19% compared to the 20/21 fiscal year baseline, aiming for a 30% reduction by the 25/26 fiscal year[141] - The company is finalizing its Scope 3 carbon emissions inventory and plans to set new short- and long-term reduction targets aligned with the Science Based Targets initiative (SBTi)[137] - The company has installed solar panels at its Zacatecas, Mexico plant, generating 1,286 MWh annually, equivalent to 11% of the plant's total electricity consumption[137] - The company aims to reduce total waste intensity per sales by 10% and hazardous waste intensity per sales by 20% by the 25/26 fiscal year compared to the 20/21 fiscal year baseline[139] - The company's Jiangmen, China manufacturing plant was recognized as a "Zero Waste Enterprise" by the Jiangmen municipal government[140] - The company has maintained a 93% waste recycling rate, with most recycled materials coming from production, including steel, copper, and plastics[140] - The company's non-CO2 emissions in FY23/24 were 39 metric tons, a 26% reduction compared to the previous year[142] - VOC emissions were below permitted standards, with measures taken to reduce emissions by replacing VOC-containing materials and implementing exhaust control systems[142] Employee and Community Engagement - The company has launched the Healthy@JE program to promote employee well-being across physical, mental, social, environmental, and occupational dimensions[48] - The JETC program has trained 1,546 students since its inception, with 106 JETC trainees as of 2024[55] - The third JETC campus was officially launched in Chennai, India, in January 2024, marking a milestone in the company's mission to engage young people globally in engineering careers[53] - The company employs over 30,000 people globally as of March 31, 2024, distributed across Asia, EMEA, and the Americas[149] - The company has set goals to reduce business carbon emissions, use 100% renewable energy, and assess product carbon footprints to align with climate policies[145] - The company is focusing on providing products for zero-carbon and low-carbon applications, implementing product carbon footprint and lifecycle assessments[146] - The company has developed business continuity plans for production and suppliers, and diversified manufacturing and supply chain footprints to enhance resilience[144] - The company has implemented best practices for flood prevention and emergency preparedness procedures to mitigate risks from extreme weather events[143] - The company prioritizes reducing and eliminating gas emissions, with zero major violations of gas emission-related laws and regulations[142] - The company collects and reuses epoxy resin particles and copper powder from production processes to reduce particulate emissions[142] - The company emphasizes a strong safety culture and strict health and safety standards across all business locations[148] - Zero fatalities recorded in the 23/24 fiscal year[153] - 105 lost time accidents (LTAs) in the 23/24 fiscal year, with a rate of 0.2 per 200,000 working hours (industry average: 0.8)[154] - 85 recordable injuries in the 23/24 fiscal year, with a rate of 0.2 per 200,000 working hours (industry average: 2.3)[155] - Revised LTA numbers for 22/23, 21/22, and 20/21 fiscal years to align with OSHA guidelines[154] - 38 entities within the group have achieved ISO 45001 certification, covering 80% of production sites and 92% of employee working hours[153] - The group's EH&S policy emphasizes a safety-first culture, with training programs and risk assessments implemented across all facilities[151][152] - A three-step health and safety culture training program has been established to promote safety awareness and problem-solving among employees[151] - The group's EH&S management system includes standardized plans, procedures, and standards applicable to all factories, covering both employees and contractors[152] - Talent retention and development are prioritized, with monthly HR committee meetings focusing on talent mobility, succession planning, and leadership development[156] - High-potential employees are identified through regular assessments and provided with additional development opportunities, including 360-degree feedback and executive education programs[156] - 15 engineers from different departments have been assigned to international assignments lasting 12 to 24 months under the Engineering International Assignment program[157] - The JE International Engineering Trainee Program offers recent engineering graduates a two-year opportunity to work in different company facilities worldwide, with the second year in China[157] - A team achieved over 40% cycle time improvement through an innovative automation production solution under the in-job training program[158] - The company provides over 360 courses on the "Learning in Motion" global learning platform, covering business compliance and soft skills[159] - The JEDi program promotes digital transformation by encouraging employees to gain expertise in digital applications, with sponsored training and exam fees[159] - The company has implemented a global "work from home" policy to help employees balance work and family responsibilities[160] - The "JE in Motion" internal communication platform facilitates leadership messaging and knowledge sharing among global employees[161] - The company organizes an annual learning month to foster a culture of learning across its organization[158] - The Leadership Essentials program supports employees in developing key skills for managerial roles[157] - The company emphasizes performance discussions to ensure employees receive recognition and constructive feedback[157] - Annual bonus is a significant component of employee compensation for over 80% of employees, including all management and executive management teams, linked to achieving revenue, profitability, liquidity, and sustainability targets[162] - The company has a long-term share incentive plan for senior executives, with a significant portion of performance-based share units that vest upon meeting stringent financial conditions[162] - Employees reported 11 whistleblowing cases in the 23/24 fiscal year, all of which were investigated confidentially, with appropriate disciplinary actions taken if violations were found[163] - The company conducted a social compliance and human rights audit in Hong Kong during the 23/24 fiscal year, confirming that all policies and procedures related to human rights and employee health and safety comply with legal requirements, with no major non-compliance issues identified[163] - The latest JETC campus in Chennai, India, officially opened in January 2024, marking another milestone in the company's mission to embrace engineering career opportunities globally[164] - Since its inception, 1,546 students have graduated from the JETC program in China and Mexico, providing the company with a pool of well-educated future employees[164] - In Serbia, the company collaborates with a local technical high school, offering facilities and staff to help students receive high-quality technical education, similar to the JETC concept[164] - The "Little Engineers" program targets children aged 6 to 12, encouraging early interest in STEM subjects through DIY toy kits powered by the company's motors[164] - The company has trained 106 JETC students in Zacatecas, Mexico, as of 2024[166] - The company's new "J-Bot" toy car workshops were held at factories worldwide, attracting approximately 200 children[167] - Over 185 JEnerations activities were organized this year, including charity walks in Hong Kong, volunteer services at a children's rehabilitation center and elderly center in China, and career advice sessions for students in the UK[167] - The company was awarded the "5 Years+ Caring Company" award by the Hong Kong Council of Social Service for its long-term commitment to corporate social responsibility[168] Corporate Governance and Risk Management - The company has established a comprehensive risk management framework led by the Enterprise Risk Management Steering Committee, which includes key executives and focuses on identifying, assessing, and mitigating risks[103] - The company faces significant risks from global economic and geopolitical instability, including potential disruptions from events like pandemics or international conflicts[105] - Consumer behavior shifts and trade disputes, particularly between the US and China, could directly impact the company's performance and supply chain[105] - The company is implementing a multi-faceted strategy to manage risks, including global positioning, strategic growth, and diversification of customer and product portfolios[105] - The company is closely monitoring new facility construction and expansion or closure of existing facilities to optimize production capacity[105] - Capital expenditure and investments are critical for the company's long-term growth, with strict approval processes in place for all capital expenditures[105] - The company conducts thorough evaluations before entering joint ventures or acquiring new businesses, considering commercial potential and

Financial Performance - Total revenue for the fiscal year ending March 31, 2024, was $3,814 million, a 5% increase year-over-year[2] - Gross profit rose by 19% to $851 million[2] - Adjusted EBITDA increased by 56% to $343 million, representing 9.0% of revenue (compared to 6.0% in the previous fiscal year)[2] - Net profit attributable to shareholders surged by 45% to $229 million[2] - Free cash flow from operations reached $422 million, doubling from $215 million in the previous year[2] - Revenue for the 23/24 fiscal year increased by $168.1 million or 5% to $3,814.2 million, with the automotive products segment contributing $3,210.2 million and the industrial and commercial products segment contributing $604.0 million[16][17] - Gross profit for the 23/24 fiscal year was $850.7 million, with a gross margin of 22.3%, up from 19.6% in the previous fiscal year[14] - Adjusted EBITA for the 23/24 fiscal year was $342.8 million, representing 9.0% of revenue, compared to $220.1 million and 6.0% in the previous fiscal year[14] - Net profit attributable to shareholders for the 23/24 fiscal year was $229.2 million, with adjusted net profit at $252.0 million[14] - Free cash flow from operations for the 23/24 fiscal year was $422.4 million, significantly higher than the $214.8 million in the previous fiscal year[14] - Net profit attributable to shareholders increased by $71.4 million to $229.2 million in FY23/24, up from $157.8 million in FY22/23[30] - Revenue grew by $168.1 million to $3,814.2 million in FY23/24, compared to $3,646.1 million in FY22/23[30] - Gross profit margin improved to 22.3% in FY23/24 from 19.6% in FY22/23[30] - Adjusted net profit increased by $104.1 million or 70% to $252.0 million in FY23/24, excluding non-cash foreign exchange losses and restructuring costs[32] - Operating profit rose by $86.6 million to $285.3 million in FY23/24, with an operating profit margin of 7.5%, up from 5.4% in FY22/23[30] - Volume/mix, pricing, and operational costs contributed a $127.2 million increase in net profit, partially offset by contract price declines[36] - Foreign exchange movements, excluding unrealized gains/losses, added $21.7 million to net profit, driven by RMB depreciation and EUR appreciation[36] - Distribution and administrative expenses as a percentage of revenue decreased to 13.4% in FY23/24 from 14.3% in FY22/23, benefiting from revenue growth and reduced transportation costs[37] - Free cash flow increased to $422.4 million in FY23/24 from $214.8 million in FY22/23[44] - Capital expenditures decreased by $41.7 million to $184.9 million in FY23/24[45] - The company invested $3.0 million in joint venture Qualisense in FY23/24[46] - The company borrowed a net amount of $87.7 million in FY23/24[46] - The company placed $60.0 million in a 6-month time deposit maturing in May 2024[46] - The company's cash position increased by $401.2 million to $809.9 million as of March 31, 2024, compared to $408.7 million on March 31, 2023[50] - The company's net cash position improved significantly, increasing by $314.4 million to $249.1 million as of March 31, 2024, from a net debt of $65.3 million on March 31, 2023[52] - Total available funds increased by $719.9 million to $1,887.6 million as of March 31, 2024, compared to $1,167.7 million on March 31, 2023[50] - The company's total debt increased by $86.8 million to $560.8 million as of March 31, 2024, compared to $474.0 million on March 31, 2023[55] - The company's total debt to capital ratio increased to 18% as of March 31, 2024, from 16% on March 31, 2023[62] - The company's interest coverage ratio improved to 10.8x as of March 31, 2024, from 9.8x on March 31, 2023[62] - The company's total debt to adjusted EBITDA ratio decreased to 1.1x as of March 31, 2024, from 1.3x on March 31, 2023[62] - The company's enterprise value to adjusted EBITDA ratio decreased to 1.9x as of March 31, 2024, from 2.5x on March 31, 2023[62] - The company's lease liabilities decreased by $19.5 million to $73.9 million as of March 31, 2024, compared to $93.4 million on March 31, 2023[61] - The company proposed a final dividend of 44 HK cents per share for the 23/24 fiscal year, equivalent to $51.9 million, compared to 34 HK cents per share for the 22/23 fiscal year[64] Revenue Breakdown by Product Group - Automotive product group revenue grew by 10% to $3,210 million, driven by strong demand in all major regions[4] - Industrial and commercial product group revenue declined by 19% to $604 million, impacted by post-pandemic consumer spending and inventory adjustments[6] - Automotive product group revenue increased by 10% YoY, contributing $303.2 million to the total revenue growth, while the industrial product group revenue decreased by $137.5 million[19] - The automotive product group's revenue in the Asia-Pacific region increased by 10%, and in the Americas, it rose by 9%, outperforming the regional light vehicle production growth rates of 8% and 6% respectively[22][23] - In Europe, the Middle East, and Africa, the automotive product group's revenue grew by 13%, compared to a 7% increase in light vehicle production in the region[23] - The automotive product group accounted for 84% of the company's total revenue in FY23/24, up from 80% in FY22/23[24] - The industrial product group's revenue decreased by 19% YoY, with declines of 13% in Asia-Pacific, 24% in Europe, the Middle East, and Africa, and 17% in the Americas[26][27] - The company's revenue was impacted by a $4.3 million decrease due to foreign exchange fluctuations, with the strengthening of the Euro against the US dollar being offset by the weakening of the Chinese Yuan and Canadian Dollar[19] - The company acquired Pendix GmbH in October 2022, which contributed to the revenue growth[19] - The automotive product group focused on developing and providing technological solutions to support the automotive industry's transition to new energy vehicles, weight reduction, and improved passenger safety and comfort[22] - The industrial product group saw growth in the piezoelectric motor segment due to strong demand for high-precision production equipment in semiconductor manufacturing, and in the medical application product segment due to the long-term need to reduce labor intensity in medical procedures[26] - The company's revenue is primarily settled in US dollars, Euros, Chinese Yuan, and Canadian dollars[19] Cash and Debt Management - Cash reserves stood at $810 million, with a year-end debt-to-capital ratio of 18%[2] - The company's cash position as of March 31, 2024, was $809.9 million, with total debt at $560.8 million, resulting in a net cash position of $249.1 million[14] - Working capital stood at 97% of revenue, with inventory decreasing by $33.1 million and trade receivables decreasing by $28.7 million during FY23/24[39] - Inventory decreased by $37.5 million to $551.5 million as of March 31, 2024[40] - Accounts receivable decreased by $35.0 million to $773.2 million as of March 31, 2024[40] - Days of inventory on hand increased slightly from 66 days in 2023 to 68 days in 2024[40] - Days sales outstanding remained flat at 65 days as of March 31, 2024[40] - Days payable outstanding increased to 86 days as of March 31, 2024, due to temporary material consumption exceeding replenishment[40] Foreign Exchange and Commodity Contracts - Foreign exchange contracts' fair value net income decreased by $44.8 million to $171.4 million as of March 31, 2024, primarily due to reduced gains from RMB and Euro contracts, partially offset by increased net income from Hungarian Forint, Mexican Peso, and Polish Zloty contracts[68] - The fair value of ordinary Euro contracts decreased by $7.0 million to $126.1 million as of March 31, 2024, mainly due to contract utilization and Euro depreciation against the USD[71] - The fair value of structural Euro contracts decreased by $18.1 million to $12.1 million as of March 31, 2024, primarily due to contract utilization[72] - The fair value of RMB contracts decreased by $40.1 million to $4.8 million as of March 31, 2024, mainly due to the weakening of RMB against the USD[73] - Ordinary forward foreign exchange contracts and cross-currency interest rate swaps are expected to generate approximately $193 million in cash flow benefits as of March 31, 2024, compared to $222 million in the previous year[76] - Structural foreign exchange contracts are expected to generate approximately $13 million in cash flow benefits as of March 31, 2024, compared to $33 million in the previous year[76] - The fair value of commodity contracts decreased by $15.4 million, primarily due to contract utilization[76] - The fair value of copper contracts decreased by $11.4 million to $3.0 million as of March 31, 2024, mainly due to contract utilization[76] - Copper spot price decreased by 2% to $8,729 per ton as of March 31, 2024, compared to $8,935 in the previous year[77] - Iron ore spot price decreased by 20% to $101.28 per ton as of March 31, 2024, compared to $126.53 in the previous year[77] - Copper materials fair value net amount decreased by $11.4 million from $14.4 million in 2023 to $3.0 million in 2024[79] - Other commodities fair value net amount decreased by $4.0 million from $4.9 million in 2023 to $0.9 million in 2024[79] - Total fair value net amount decreased by $15.4 million from $19.3 million in 2023 to $3.9 million in 2024[79] - Weighted average contract price for copper materials increased from $6,000 in 2023 to $10,000 in 2024[80] Risk Management and Strategy - The company actively manages risks through a multi-layered strategy, including global positioning, strategic growth, diversification, and customer insights[85] - The company's risk management process includes identifying potential risks, assessing and prioritizing risks, and integrating risk management into workflows and corporate culture[82] - The company's strategy includes optimizing production capacity, managing resource burdens, and continuous investment for long-term growth[85] - The company's risk management steering committee, led by the CEO, includes key executives and focuses on quarterly analysis and monitoring of risks[82] - The company's risk management approach includes global status, strategic growth, diversification, and customer insights to mitigate risks from global economic and geopolitical environments[85] - The company's risk management framework includes on-site supervision, capital expenditure review, and strategic evaluation for joint ventures or acquisitions[85] - The company faces intense competition in both its core and expansion markets, leading to significant pricing pressure and potential sales volatility[87] - The company is investing in cost-effective solutions, productivity improvements, and market insights to enhance competitiveness[87] - The company is actively developing innovative and cost-effective solutions while maintaining technological competitiveness through internal development and acquisitions[87] - The company is diversifying its customer and product portfolio to mitigate risks from technological and regulatory changes[87] - The company is expanding its global footprint to reduce reliance on any single country, ensuring agility and adaptability[90] - The company is reducing dependency on major clients and product lines by diversifying its customer base and product portfolio, with no single client accounting for more than 10% of total revenue[92] - The company is protecting its intellectual property through systematic collection, formalization, and registration of trade secrets and proprietary technologies[93] - The company is enhancing supply chain resilience by maintaining strong relationships with suppliers and exploring strategic insourcing opportunities[95] - The company is enhancing regional production capabilities to reduce reliance on global supply chains and shorten delivery times[96] - The company is focusing on localizing supply chains by prioritizing local suppliers and resources to simplify logistics[96] - The company is optimizing international commercial terms for customer shipments to improve transportation efficiency[96] - The company maintains safety stock within regions to buffer against potential logistics disruptions[96] - The company is developing regional operational footprints and diversifying supply chains to increase operational flexibility and reduce dependency on single locations[99] - The company is implementing information security protocols, including virus and malware protection, and identity and access management to mitigate cybersecurity risks[101] - The company is actively monitoring threats to promptly identify and address emerging security issues[101] - The company is reducing energy intensity in operations to mitigate risks from energy market inflation, shortages, and disruptions[106] - The company is continuously improving engineering and manufacturing processes to minimize quality issues and reduce product liability risks[105] - The company is implementing identity verification and robust business processes to reduce fraud risks, including vendor and employee impersonation[106] - The company is committed to reducing CO2 emissions, increasing the use of renewable energy, and improving energy efficiency in its operations[108] - The company has implemented measures to assess the carbon footprint of its value chain and aims to set CO2 reduction targets in this area[108] - The company is evaluating vulnerabilities to climate change and extreme weather events, exploring adaptation measures to enhance climate resilience[108] - The company provides products targeting zero-carbon and low-carbon applications, offering solutions that reduce barriers to equality and promote safety, health, and well-being[108] - The company designs environmentally friendly products and processes that consume minimal resources and energy during manufacturing and use[108] - The company conducts product carbon footprint and lifecycle assessments to actively reduce environmental impact[108] - The company ensures compliance with labor laws and regulations, safeguarding employee rights and promoting diversity and equal opportunities[110] - The company implements robust training and development programs to attract and retain talent, with employee engagement assessed every two years[110] - The company maintains a strong ethical tone from leadership, ensuring alignment of values, strategy, and organizational culture[110] - The company monitors the sustainability performance of its key suppliers, considering cost, quality, safety, environmental protection, social responsibility, and ethical behavior[110] - The company maintains an investment-grade credit rating and manages liquidity through ample cash reserves, standby credit facilities, and expected future operating cash flows to meet current and anticipated cash needs[112] - The company's sustainability framework focuses on five key areas: product innovation, environmental protection, employee development, community enrichment, and trust & transparency[112][113] - The company aims to develop new products with optimized Life Cycle Assessment (LCA), Product Carbon Footprint (PCF), and Environmental Product Declarations (EPD)[117] - The company's sustainability governance system empowers each business unit and employee to make a positive impact, with clear goals, roles, responsibilities, and accountability[114] - The company's sustainability activities are led by a committee chaired by an executive director and senior vice president, with monthly meetings to align business direction with stakeholder goals[115] - The company collaborates with customers to provide sustainable solutions, particularly in the automotive industry, supporting the green transition of the mobility sector[115] - The company focuses on developing energy-efficient, low-noise, and long-life products for household appliances, contributing to daily comfort and sustainability[115] - The company is committed to protecting the environment for future generations, with strategies to mitigate climate change risks and sustainably use natural resources[112] - The company integrates sustainability into all aspects of its organization, with all business and functional units responsible for contributing to sustainability goals[115] - The company's sustainability governance includes the board of directors, which is fully responsible for sustainability strategy and reporting, with expanded audit committee responsibilities[114] - Johnson Electric has over 400 automotive customers and more than 1,100 non-automotive customers, with no single customer accounting for more than 10% of total revenue[120] - The company has manufacturing and assembly facilities across 17 countries in 4 continents, enabling it to respond quickly to demand changes[120] - Johnson Electric uses sustainable materials, recycled materials, and renewable energy sources to reduce environmental impact in its manufacturing processes[120] - The company aims to improve material usage efficiency and minimize waste throughout the product lifecycle[120] - Johnson Electric has implemented a strong EH&S monitoring system and continuous improvement culture to support environmental responsibility[122] - The company's main environmental priorities are reducing carbon emissions, increasing renewable energy usage, improving energy efficiency, and reducing waste and pollution[123] - Johnson Electric integrates environmental protection considerations into all decisions, new facilities, products, and process designs[124] - 100% of the company's production sites are ISO 14001 certified, with 11 entities holding ISO 50001 certification, accounting for 52% of total energy consumption and 60% of total carbon emissions[126] - The company aims to use 100% renewable energy across all operations by 2025 where feasible, and has already increased renewable energy usage from 22% to 44% year-over-year[128] - Scope 1 and 2 carbon emissions have been reduced by 53% compared to the 20/21 fiscal year baseline, exceeding the 2030 target of a 42% reduction[128] - Energy intensity per sales decreased by 2% in the 23/24 fiscal year compared to the 19/20 baseline[129] - The company achieved zero waste to landfill for the second consecutive year in the 23/24 fiscal year, with a 7% reduction in waste intensity per sales compared to the 20/21 baseline[133] -