CTF Services (659) H1 2026 earnings summary

Executive summary

• Profit attributable to shareholders increased 15% year-on-year to HK$1,334.3 million, driven by robust Financial Services growth and strategic portfolio management, including acquisitions in uSmart (13.05%) and Blackhorn (65%) and logistics expansion in Dongguan and the Yangtze River Delta.

• Attributable Operating Profit (AOP) rose 3% year-on-year to HK$2,283.9 million, reflecting resilience amid subdued market conditions.

• Restored public float above 25% via convertible bond issuance and conversions, enhancing stock liquidity and enabling re-inclusion in the Hang Seng Composite Index and Stock Connect eligibility.

• Interim dividend declared at HK$0.28 per share, up 3% year-on-year on a comparable basis, with total interim ordinary dividend amount rising 6% to HK$1.27 billion.

• Financial position remained strong with total available liquidity of HK$31.0 billion and net gearing ratio reduced to 34%.

Financial highlights

• Revenue for the period was HK$12,826.8 million, up from HK$12,109.7 million year-on-year.

• Adjusted EBITDA remained stable at HK$3,591.4 million.

• Net debt reduced by 6% to HK$13.8 billion; net gearing ratio improved to 34%.

• Basic earnings per share increased 14% year-on-year to HK$0.30.

• Debt due within one year reduced by 28% to HK$6.8 billion.

Outlook and guidance

• Financial Services segment expected to benefit from sustained demand for cross-border wealth management and insurance solutions, especially from affluent Chinese Mainland customers.

• Logistics segment to focus on tenant diversification, selective acquisitions in core economic regions, and digital infrastructure investments.

• Construction segment to leverage government and institutional projects for growth, with operational efficiency enhancements and a strong backlog.

• Facilities Management to capitalize on government incentives and expand healthcare and event offerings.

• Group to maintain disciplined capital allocation and risk management, with a focus on long-term value creation.