Kingboard Holdings (148) H2 2024 earnings summary

Executive summary

• Revenue increased 9% year-over-year to HK$43,093.3 million, driven by recovery in electronics and growth in automotive electronics and AI sectors.

• Underlying net profit declined 29% year-over-year to HK$1,622 million due to provisions for property-related losses, despite strong performance in Laminates and PCBs.

• The Group maintained a healthy capital structure, with net gearing at 28% and robust liquidity.

• Final dividend of HK54 cents and special final dividend of HK46 cents per share proposed.

Financial highlights

• EBITDA decreased 4% year-over-year to HK$5,865 million.

• Profit before tax fell 9% to HK$2,754.3 million.

• Reported net profit attributable to owners dropped 21% to HK$1,630.3 million.

• Basic EPS based on underlying net profit was HK$1.464, down 29% year-over-year.

• Interim and special interim dividends increased significantly; proposed final and special final dividends also up.

Outlook and guidance

• Management expects continued geopolitical and trade challenges in 2025, but anticipates robust demand in electronics, especially from AI and automotive sectors.

• Expansion of laminate and PCB capacity in Thailand and Vietnam to meet overseas demand.

• Chemicals Division to benefit from new projects and green initiatives; Property Division to focus on rental income from unsold inventory.