Yuexiu Transport Infrastructure (1052) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was RMB 1.827B, down 5.6% year-over-year, mainly due to severe weather, increased toll-free holidays, and the expiry of the Northern Ring Road toll collection right; profit attributable to shareholders was RMB 314M, a 26.5% decrease.

• Han'e Expressway outperformed with over 100% year-on-year revenue growth and a 30.2% increase in daily toll revenue.

• The GNSR Expressway R&E Project advanced to a new phase, with all permits secured and construction progressing on schedule.

• The board declared an interim dividend of HK$0.12 per share (RMB0.1097), with a payout ratio of 58.5%.

• Severe weather, toll-free holidays, and the expiry of the Northern Ring Road toll right were key factors impacting results.

Financial highlights

• Gross profit was RMB 916M, down 16.3% year-over-year; gross margin declined to 50.1%.

• EBITDA for 1H 2024 was RMB 1.599B, down 9.5% year-over-year; EBITDA interest coverage improved to 6.6x.

• Basic and diluted EPS were RMB 0.1876, down 26.5% year-over-year.

• Total assets as of June 30, 2024: RMB 36.26B; net assets per share: RMB 6.99.

• Finance costs dropped 12.2% to RMB 249M, reflecting lower interest rates and optimized debt structure.

Segment performance

• Most controlled toll projects saw declines in toll revenue and traffic, except Han'e Expressway, Humen Bridge, and GWSR Expressway, which posted increases.

• The expiry of the Northern Ring Road toll collection right in March 2024 significantly reduced associate contributions.

• Pazhou Port commenced formal operations in May 2023, with average daily ticket revenue of RMB 140,000 in 1H 2024.