China Merchants Shekou Industrial Zone (001979) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥26.74 billion, up 9.64% year-over-year, while net profit attributable to shareholders was ¥1.18 billion, down 26.78% from the same period last year.

• For the first nine months, revenue grew 2.88% year-over-year to ¥78.01 billion, but net profit attributable to shareholders fell 31.00% to ¥2.60 billion.

• The decline in profit was mainly due to a lower gross margin in development projects and reduced cash inflow from real estate sales.

Financial highlights

• Operating cash flow for the first nine months was ¥12.97 billion, down 49.58% year-over-year.

• Basic and diluted EPS for Q3 were ¥0.11, down 35.29% year-over-year; for the nine months, EPS was ¥0.22, down 43.59%.

• Total assets at quarter-end were ¥918.76 billion, up 1.13% from year-end 2023.

• Shareholders’ equity decreased 7.87% to ¥110.30 billion compared to year-end 2023.

Outlook and guidance

• Management attributes profit decline to lower gross margins in development business and expects continued pressure from reduced real estate sales collections.