Shoucheng (697) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 55% year-over-year to HK$536 million, driven by growth in asset operation and FIME segments.

• Gross profit increased 135% year-over-year to HK$233 million, with gross margin improving to 43.6% from 28.7%.

• Profit attributable to owners was HK$261 million, down from HK$303 million in the prior year period.

• Basic and diluted EPS were HK3.65 cents, compared to HK4.17 and HK4.14 cents, respectively, in 2023.

• Interim dividend declared at HK$208 million (HK2.86 cents per share), lower than last year's HK$243 million.

Financial highlights

• Adjusted EBITDA reached HK$467 million, up 2.4% year-over-year.

• Operating profit was HK$353 million, compared to HK$419 million last year.

• Asset–Liability ratio increased to 29.2% (from 25.7%), and Debt–Equity ratio to 11.0% (from 8.0%).

• Total assets reached HK$14,352 million, up from HK$13,523 million at year-end 2023; net assets at HK$10,155 million.

• Bank balances and cash stood at HK$2,707 million as of 30 June 2024.

Outlook and guidance

• The company aims to deepen asset-light strategies, integrate asset operation and FIME, and enhance full lifecycle management.

• Long-term focus is on asset recycling, digitalization, and sustainable growth through technological empowerment.