Sichuan Road & Bridge Group (600039) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 45.78 billion, down 31.16% year-over-year; net profit attributable to shareholders was RMB 3.19 billion, down 43.47% year-over-year.

• Decline attributed to slower construction industry growth, project delays due to land and environmental issues, and a strategic reduction in trading business.

• The company maintained a strong order backlog exceeding RMB 280 billion, supporting future growth.

• Interim cash dividend of RMB 0.37 per 10 shares (pre-tax), totaling RMB 322 million, representing 10.09% of H1 net profit.

Financial highlights

• Operating income: RMB 45.78 billion, down 31.16% year-over-year.

• Net profit attributable to shareholders: RMB 3.19 billion, down 43.47% year-over-year.

• Operating cash flow: -RMB 4.72 billion.

• Total assets: RMB 244.88 billion, up 1.65% from year-end 2023.

• Basic EPS: RMB 0.37, down 43.08% year-over-year.

• Gross margin and net margin declined due to project delays and cost pressures.

Outlook and guidance

• Focus on consolidating core construction business, accelerating project approvals, and expanding in key domestic and international markets.

• Plans to further develop mining, new materials, and clean energy segments, with emphasis on high-quality, strategic resources.

• Cautious on large-scale commercialization of smart construction and new energy, citing early-stage development and market uncertainties.