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, with AOP up 3% to HK$2,283.9 million.

• Maintained a progressive dividend policy, declaring an interim dividend of HK$0.28 per share, up 3% year-on-year, with total interim 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%.

• Strategic acquisitions in Financial Services (uSmart, Blackhorn) and logistics (Dongguan, Shanghai, Ningbo, Changzhou) expanded capabilities and reinforced long-term growth.

• Re-inclusion into the Hang Seng Composite Index effective March 2026, enhancing investor outreach, liquidity, and Stock Connect eligibility.

Financial highlights

• Revenue increased 6% year-on-year to HK$12,826.8 million; AOP up 3% to HK$2,283.9 million; adjusted EBITDA stable at HK$3,591.4 million; net profit up 15% to HK$1,334.3 million.

• Interim ordinary dividend of HK$0.28 per share, up 3% year-on-year; total interim dividend up 6% to HK$1.27 billion.

• Net debt reduced by 6% to HK$13.8 billion; net gearing ratio improved to 34%; total available liquidity at HK$31.0 billion.

• Average borrowing cost decreased to 4.0% per annum; fixed-rate borrowings at 76% of total debt.

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

Outlook and guidance

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

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

• Construction segment to leverage government and institutional projects for growth, with operational efficiency and safety as priorities.

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

• Group to maintain disciplined capital allocation, risk management, and a sustainable, progressive dividend policy.