Zhongshen Jianye Holding (2503) H2 2023 earnings summary

Executive summary

• FY23 revenue rose 11.1% YoY to RMB1,530.9m; profit rose 25.6% to RMB31.8m, supported by operating recovery and higher construction activity.

• Net assets increased 13.9% to RMB372.4m at 31 Dec 2023; no final dividend was recommended.

Financial highlights

• Gross profit increased 13.0% YoY to RMB89.1m; gross margin improved to 5.8% from 5.7%.

• Operating profit was RMB47.8m vs RMB38.6m; profit before tax was RMB46.5m vs RMB38.3m.

• EPS was RMB8.24 cents vs RMB6.56 cents; net income attributable to owners was RMB31.8m vs RMB25.3m.

• Administrative expenses rose 5.5% YoY, mainly due to higher listing expenses and audit and professional fees; listing expenses were RMB10.1m.

Outlook and guidance

• PRC and Guangdong infrastructure plans are expected to support construction-service demand; plans prioritize infrastructure and construction-sector development.

• Strategy is to broaden construction-service offerings and strengthen market presence, particularly in Guangdong, to pursue opportunities.