GC Construction Holdings (1489) H2 23/24 earnings summary

Executive summary

• FY24 revenue rose 8.0% to HK$585.2m, while gross profit fell 36.1% to HK$41.8m and attributable profit declined to HK$19.1m.

• A 61-project backlog was valued at HK$564.8m at 31 Mar 2024, down from HK$621.5m a year earlier; no final dividend was recommended.

Financial highlights

• Revenue increased HK$43.5m, or 8.0%, to HK$585.2m; higher construction volume on major projects drove growth.

• Service costs rose 14.1% to HK$543.3m, exceeding revenue growth; gross profit fell to HK$41.8m from HK$65.5m.

• Net profit attributable to owners was HK$19.1m versus HK$49.3m; the 61.3% decline reflected lower gross profit and other income.

• Other income fell to HK$0.1m from HK$18.7m, including HK$18.3m of one-time Employment Support Scheme subsidy in FY23 and none in FY24.

• Administrative expenses were stable at HK$20.7m; net finance income increased to HK$2.2m from HK$0.5m on higher short-term deposit interest.

Outlook and guidance

• Expansion initiatives target masonry works in Cambodia and renovation works in Hong Kong, broadening revenue sources and reducing reliance on Hong Kong masonry.

• Cambodia was identified as an attractive market amid economic growth and infrastructure development; renovation expansion will leverage existing workforce and project management capabilities.

• The order book comprised 61 projects worth HK$564.8m at 31 Mar 2024, compared with 53 projects worth HK$621.5m in FY23.