China Merchants Port Holdings Company (144) H1 2024 earnings summary

Executive summary

• Container throughput reached 71.77 million TEUs, up 7.9% year-over-year, with overseas ports growing 10.6% and bulk cargo throughput rising 1.7% to 274 million tonnes.

• Profit attributable to equity holders increased 32.9% year-over-year to HK$4,452 million, driven by higher fair value gains and reversal of impairment.

• Basic EPS grew 26.7% year-over-year to 106.05 HK cents; interim dividend per share up 13.6% to 25 HK cents.

• Significant progress in global expansion, including the acquisition of 51% equity in NPH, marking entry into Southeast Asia's port market.

• Achieved notable growth in key performance indicators, supported by global economic recovery and innovation-focused strategies.

Financial highlights

• Revenue was HK$5,795 million, stable year-over-year; excluding Ningbo Daxie, revenue rose 9.5%.

• Recurrent profit increased 24.9% year-over-year to HK$4,154 million.

• Gross profit increased to HK$2,782 million from HK$2,610 million year-over-year.

• Net cash generated from operating activities surged 77.4% to HK$4,251 million.

• Net assets attributable to equity holders stood at HK$103,467 million, up 1.3% from year-end 2023.

Outlook and guidance

• Global economic growth for 2024 is forecast at 3.2%, with global trade volume expected to rise 3.1%.

• The group will focus on lean operations, innovation, digitalization, and global expansion, especially in Southeast Asia and South Asia.

• Continued emphasis on ESG integration and high-quality development amid external uncertainties.

• Uncertainties persist due to geopolitical conflicts, high interest rates, and inflation, but positive growth factors are accumulating.