CK Infrastructure (1038) H2 2023 earnings summary

Executive summary

• Resilient portfolio delivered steady 2023 performance, with net profit growth supported by regulated assets and solid non-regulated businesses.

• Funds from operations reached a record HK$8.6bn; cash on hand was HK$13.0bn and net debt to net total capital was 7.7%.

Financial highlights

• Profit attributable to shareholders rose 4% to HK$8,027m from HK$7,748m; excluding the 2022 one-off Northumbrian Water partial-sale gain, net profit increased 12% YoY.

• Profit for the year was HK$8,459m vs HK$8,173m; EPS was HK$3.19 vs HK$3.08.

• Turnover was HK$38,582m vs HK$39,236m; sales and interest income from infrastructure investments were HK$5,990m vs HK$6,615m.

• Total dividend was HK$2.56 per share, up 1.2% YoY and marking 27 consecutive years of dividend growth.

Outlook and guidance

• Stable regulatory frameworks underpin expectations for steady recurring income; non-regulated businesses are also expected to contribute, with growth prospects cited for ista, Reliance and EDL.

• Strong financial capacity is intended to support investment opportunities across existing and new industries, while maintaining prudent financial discipline and comfortable gearing.