Xi'an Kingfar Property Services (1354) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was RMB463.33m, up 18.57% YoY; profit for the period rose to RMB31.00m from RMB25.22m.

• Managed GFA was 15.53m sq.m. across 147 projects; contracted GFA reached 16.35m sq.m. across 152 projects at 30 June 2024.

• H shares began trading on 3 July 2024 after an offering of 16,666,800 shares at HK$7.50 each; no interim dividend was declared.

Financial highlights

• Revenue rose to RMB463.33m from RMB390.76m; cost of sales increased to RMB393.69m from RMB335.04m as business scale expanded.

• Gross profit rose 25.00% YoY to RMB69.65m; gross margin expanded to 15.03% from 14.26%.

• Operating profit was RMB38.79m, profit before tax RMB38.16m and income tax expense RMB7.16m.

• Profit attributable to owners was RMB29.67m versus RMB24.72m; basic and diluted EPS was RMB0.59 versus RMB0.49.

Outlook and guidance

• H2 priorities include expanding in Northwest China, deepening basic property and city services, raising bid wins and broadening service scope through joint ventures, M&A and project expansion.

• Plans include diversifying services, developing professional talent and using the parent’s business coverage to pursue tenders and extend the operating footprint.