Zhongshen Jianye Holding (2503) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 51.0% YoY to RMB750.6m as fewer construction projects generated revenue; profit fell 93.9% to RMB1.9m.

• Net assets rose 27.8% to RMB476.0m at year-end; no final dividend was recommended.

Financial highlights

• Revenue was RMB750.6m vs RMB1,530.9m in FY2023; cost of revenue declined to RMB709.2m from RMB1,441.8m.

• Gross profit fell to RMB41.3m from RMB89.1m; operating profit was RMB2.3m vs RMB47.8m.

• Profit attributable to owners was RMB1.9m vs RMB31.8m; FY2024 included an income tax credit of RMB1.9m, mainly from reversing prior-year PRC tax over-provision.

Outlook and guidance

• PRC and Guangdong infrastructure and construction plans are expected to support demand; Guangdong construction output is forecast to grow at an 8.3% CAGR to RMB3,426.1bn by 2027.

• Strategy is to broaden construction services and strengthen market presence, especially in Guangdong, while pursuing construction engineering and municipal/public projects with higher contract values.