Yuexiu Transport Infrastructure (1052) H1 2026 earnings summary

Executive summary

• Revenue and profit continued to grow despite macroeconomic and regional traffic challenges, supported by the acquisition of an 85% stake in Qinhuangdao-Binhai (Qinbin) Expressway, which contributed RMB 165M in toll revenue and RMB 64.7M in profit attributable to shareholders.

• Lean management initiatives and targeted strategies for individual roads led to revenue growth and cost reductions across several expressways.

• EBITDA increased 5.5% to RMB 1.94B, while profit attributable to shareholders grew 6.9% to RMB 386M.

• Asset base expanded to RMB 42.17B, up 12.8% from year-end 2025, with toll mileage increasing to 659.3 km.

Financial highlights

• Revenue rose 2.0% year-over-year to RMB 2.14B in 1H 2026; EBITDA increased 5.5% to RMB 1.94B; profit attributable to shareholders grew 6.9% to RMB 386M.

• Gross profit declined 8.9% year-over-year to RMB 894M due to higher amortisation of intangible operating rights.

• Operating profit fell 5.0% to RMB 808M; finance costs rose 5.4% to RMB 234M, mainly from Qinbin Expressway consolidation.

• Dividend per share maintained at HKD 0.12 (RMB 0.1038), with a payout ratio of 45.0%.

• Current ratio at 0.4x; cash and cash equivalents decreased to RMB 1.93B, mainly due to acquisition payments.

Outlook and guidance

• China’s GDP grew 4.7% in 1H 2026, with continued resilience expected in 2H 2026.

• Strategic focus on expanding core highway business, M&A, lean operations, and new energy infrastructure to drive high-quality growth.

• Continued emphasis on refined management, cost reduction, and digital transformation to drive efficiency.

• Management confident in meeting liabilities with available financing and operating cash flow.