Kingboard Holdings (148) H1 2024 earnings summary

Executive summary

• Revenue grew 9% year-over-year to HK$20,415.2 million for the six months ended 30 June 2024, with net profit attributable to owners up 8% to HK$1,506.9 million.

• Growth was driven by strong demand and recovery in the electronics sector, especially AI and automotive electronics, benefiting the Laminates and PCBs segments.

• Interim dividend was raised to HK$0.40 per share, up 150% from prior year, with a special interim dividend of HK$0.50 per share.

Financial highlights

• EBITDA increased 12% year-over-year to HK$3,736.0 million; profit before tax rose 18% to HK$2,138.7 million.

• Basic earnings per share increased 9% to HK$1.360; net asset value per share rose 2% to HK$54.3.

• Net gearing stood at 30%, with a current ratio of 2.22 and net current assets of HK$24,247.7 million.

Outlook and guidance

• The group is investing in distributed solar photovoltaics and thermal energy recovery, targeting significant energy savings and carbon emission reductions.

• Expansion plans include new laminates and PCB capacities in Thailand, Vietnam, and China, and new chemical projects in Hebei and Guangxi.

• Management expects continued growth, supported by favorable government policies, ongoing demand in electronics and chemicals, and a focus on cost control, technological upgrades, and ESG initiatives.