Anhui Expressway Company (995) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 31.38% year-over-year to RMB 3,052.97 million, mainly due to increased construction service revenue from the Xuanguang Expressway PPP project.

• Net profit attributable to owners decreased by 3.53% year-over-year to RMB 809.87 million, with basic EPS at RMB 0.4883.

• Toll revenue declined 8.55% year-over-year, impacted by policy exemptions, weak demand, weather, and road network changes.

• Major board and management changes, including elections and new appointments, occurred in June 2024.

• No interim dividend was declared for H1 2024.

Financial highlights

• Revenue: RMB 3,052.97 million (+31.38% YoY); net profit: RMB 809.87 million (-3.53% YoY).

• Basic EPS: RMB 0.4883 (-3.53% YoY); net assets per share: RMB 7.6498 (-1.48% YoY).

• Net cash from operating activities: RMB 1,436.55 million (+0.59% YoY); net cash from investing activities: RMB 233.42 million; net cash from financing activities: RMB 395.28 million.

• Finance costs decreased 38.34% due to lower interest rates and higher deposit income.

• Total assets: RMB 23,402.13 million as of June 30, 2024.

Outlook and guidance

• Focus on stabilizing toll revenue, cost control, and efficiency improvement.

• Strategic emphasis on expanding main road industry scale, optimizing investments, and cultivating new profit growth points.

• The company will manage policy, franchise expiration, macroeconomic, and road network risks.

• Continued investment in expressway expansion and digital transformation.

• No interim dividend for H1 2024; 2023 final dividend paid in July 2024.