Tan Chong International (693) H1 2026 earnings summary

Executive summary

• After-tax profit rose 68% year-over-year to HK$180.7 million, despite a 5% decline in revenue to HK$6.16 billion for the first half of 2026.

• EBITDA increased 10% to HK$738.7 million, with operating profit margin improving to 6.3% from 5.1% year-over-year.

• Profit growth was driven by ETHOZ Group and ZERO Group, offsetting weaker automotive sales due to regulatory changes and supply constraints.

• Strategic launches of Subaru BEVs (Solterra XT and E-Outback) in key markets received strong acclaim.

Financial highlights

• Revenue declined 5% year-over-year to HK$6.16 billion; after-tax profit increased 68% to HK$180.7 million.

• EBITDA grew 10% to HK$738.7 million; profit from operations was HK$385.5 million, up from HK$329.8 million.

• Interim dividend declared at HK$0.025 per share (up from HK$0.02), totaling HK$50.3 million.

• Net gearing ratio at 46.8% as of 30 June 2026; net debt at HK$5.83 billion.

• Net asset per share decreased to HK$6.19 from HK$6.46 at year-end 2025.

Outlook and guidance

• Second half of 2026 expected to remain challenging due to global interest rate uncertainty, inflation, and geopolitical risks.

• Leaner cost base, improved vehicle pipeline, and easing supply constraints expected to support better sales.

• ETHOZ Group and ZERO Group projected to remain key profit contributors.