Bright Smart Securities & Commodities Group (1428) Q4 2023 earnings summary

Executive summary

• Revenue for the year ended 31 March 2024 was HK$846.2 million, down 4.0% year-over-year, while net profit attributable to shareholders fell 10.0% to HK$558.5 million.

• Earnings per share were 32.93 HK cents, compared to 36.56 HK cents in the prior year.

• The Group maintained profitability despite a 19.6% drop in aggregate market turnover on HKEX, outperforming the broader market.

• Final dividend proposed is 33.0 HK cents per share, down from 50.0 HK cents last year.

Financial highlights

• Operating profit rose to HK$864.9 million from HK$806.4 million year-over-year.

• Profit before tax was HK$605.0 million, down from HK$692.2 million; net profit margin decreased to 66.0% from 70.4%.

• Total assets at 31 March 2024 were HK$7,078.5 million, with net assets of HK$1,444.3 million.

• Cash and cash equivalents stood at HK$441.3 million, and bank borrowings at HK$3,775.0 million.

• Gearing ratio increased to 261.4% from 254.2% year-over-year.

Outlook and guidance

• Management expects continued opportunities from China's economic recovery, policy support, and financial market reforms.

• Expansion of Stock Connect and Cross-boundary WMC is anticipated to boost capital flows and business opportunities.

• The Group will focus on digitalisation, global product expansion, and strengthening its sales and service network.