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% revenue decline to HK$6.16 billion, driven by robust performance from ETHOZ and ZERO Groups and cost discipline in automotive operations.

• EBITDA increased 10% to HK$738.7 million, and operating profit margin improved 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.

• Interim dividend declared at HK$0.025 per share, up from HK$0.02 per share in the prior year.

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

Financial highlights

• Revenue for H1 2026: HK$6.16 billion (down 5% year-over-year).

• After-tax profit: HK$180.7 million (up 68% year-over-year).

• EBITDA: HK$738.7 million (up 10% year-over-year).

• Operating profit: HK$385.5 million (up from HK$329.8 million year-over-year).

• Basic EPS: 4.07 cents (up from 0.58 cents year-over-year).

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 and ZERO Groups projected to remain key profit contributors.