Sichuan Road & Bridge Group (600039) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥107.24 billion, down 6.78% year-over-year; net profit attributable to shareholders was ¥7.21 billion, down 19.92% year-over-year; basic EPS was ¥0.83, down 20.19% year-over-year.

• Operating cash flow turned positive to ¥3.43 billion from a negative ¥2.12 billion last year.

• The company maintained a strong order backlog, with new contracts of ¥138.27 billion and total outstanding orders of ¥291.32 billion at year-end.

• The board proposed a cash dividend of ¥0.377 per share, totaling ¥3.28 billion, with total 2024 dividends (including interim) expected to reach ¥3.61 billion, representing 50.02% of attributable net profit.

• The company completed major restructuring, shifting mining and clean energy businesses to equity-method investments, focusing resources on core engineering and construction.

Financial highlights

• Revenue: ¥107.24 billion, down 6.78% year-over-year; net profit attributable to shareholders: ¥7.21 billion, down 19.92%.

• Gross margin for engineering construction was 15.56%, down 2.41 percentage points; overall gross margin for the group was 16.23%.

• Net assets attributable to shareholders: ¥47.84 billion, up 6.01% year-over-year.

• Operating cash flow: ¥3.43 billion, a significant improvement from last year.

• Quarterly net profit: Q4 was the strongest at ¥2.44 billion.

Outlook and guidance

• The company expects continued pressure on revenue and profit in the short term due to project transitions and macroeconomic factors, but maintains a positive long-term outlook based on a robust order book and industry opportunities.

• The board has committed to a future dividend payout ratio of no less than 60% of attributable net profit for 2025-2027.