CK Asset Holdings (1113) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was HK$34,727 million, down 4.9% year-over-year; profit attributable to shareholders was HK$8,603 million, down 15.3% per share to HK$2.44.

• Profit before investment property revaluation was HK$6,726 million, down 9.5%; interim dividend declared at HK$0.39 per share, a 9.3% decrease.

• 87% of revenue and 82% of profit are recurrent, providing a strong foundation.

• The group maintained resilience through prudent investment, share buybacks, and diversification into infrastructure, renewables, and social infrastructure.

• Share buybacks totaled over HK$1.5 billion in H1 2024, reflecting confidence in future growth.

Financial highlights

• Net book value per share rose 1.4% to HK$110.23; net debt stood at HK$23.3 billion, with net debt to net total capital ratio at 5.5%.

• Bank and other loans totaled HK$56.1 billion; bank balances and deposits at HK$32.8 billion as of June 30, 2024.

• Contracted sales not yet recognized rose to HK$28,440 million, mainly due to Blue Coast launch.

• Moody’s A2 stable and S&P A stable credit ratings maintained.

• Investment property revaluation surplus (net of tax and non-controlling interests) was HK$1,877 million.

Outlook and guidance

• Management remains focused on a diversified, global approach, seeking double-digit returns and high liquidity.

• Dividend payout for the full year will depend on full-year results; share buybacks remain a key tool for shareholder returns.

• Cautious optimism for Hong Kong property market recovery; readiness to deploy capital for new opportunities.

• Infrastructure and utility investments expected to remain a growth focus, with global and local opportunities pursued.

• Group will pursue long-term growth via strategic global investments, leveraging low gearing and strong liquidity.