GC Construction Holdings (1489) H2 22/23 earnings summary

Executive summary

• H1 FY2022/23 revenue rose 3.7% YoY to HK$262.7m; profit attributable to owners increased to HK$36.3m from HK$16.8m, driven largely by government support income and higher gross profit.

• Wet trades works activity benefited from sizeable ongoing projects; 45 projects were on hand at period-end, with HK$620.5m backlog.

Financial highlights

• Revenue was HK$262.7m, up 3.7% YoY; cost of services rose 3.6% to HK$230.7m, broadly in line with revenue.

• Gross profit increased 4.4% to HK$32.0m; reported operating profit was HK$40.5m vs HK$20.7m, including HK$18.3m Employment Support Scheme income.

• Profit before tax was HK$40.3m vs HK$20.6m; profit attributable to owners was HK$36.3m vs HK$16.8m, while income tax expense was HK$4.0m vs HK$3.8m.

• Basic and diluted EPS was HK$0.048 vs HK$0.022; no interim dividend was recommended for either period.

Outlook and guidance

• Management expects performance to remain stable in the coming year, supported by a steady backlog and ongoing project pipeline.

• Management plans to direct resources toward competing for additional and larger wet trades projects in Hong Kong.