Shoucheng (697) H1 2024 earnings summary

Executive summary

• Revenue grew 55% year-over-year in 2024H1 to HK$536 million, driven by growth in asset operation and FIME segments and enhanced asset efficiency.

• Gross profit surged 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.

• Major new projects included parking operations at Guangzhou Baiyun Airport, Beijing Fengtai Station, and Lhasa Kongga International Airport.

• 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.

• Basic and diluted EPS were HK3.65 cents, down from HK4.17 and HK4.14 cents, respectively.

• Asset-liability ratio increased to 29.2% (from 25.7%), and debt-equity ratio rose to 11.0% (from 8.0%).

• Total assets as of 2024H1: HK$14,352 million, up from HK$13,523 million at end-2023.

Outlook and guidance

• Plans to deepen asset-light strategies, integrate asset operation with FIME, and enhance full lifecycle management.

• Focus on asset recycling, digitalization, and technological empowerment for sustainable growth.

• Plans to distribute at least 80% of profit attributable to owners annually as dividends from 2023 to 2027.