China Resources Building Materials Technology (1313) H2 2024 earnings summary

Executive summary

• Turnover declined 9.8% year-over-year to RMB 23,037.8 million, reflecting a challenging market environment.

• Net profit attributable to owners dropped 67.2% to RMB 210.9 million, with EPS falling to RMB 0.030.

• Net margin dropped to 0.5% from 2.4% in 2023.

• Free cash flow turned positive at RMB 821.3 million, reversing a negative position last year.

• Dividend payout ratio surged to 91.4%, subject to AGM exchange rates.

Financial highlights

• Gross profit increased 1.0% to RMB 3,800.3 million, with gross margin up 1.8 ppt to 16.5%.

• EBITDA decreased 4.6% to RMB 3,894.2 million year-over-year.

• Gearing ratio improved to 34.6% from 36.9%.

• Cash and bank balances fell 14.2% to RMB 2,235.2 million.

• Net assets per share remained stable at RMB 6.32.

Outlook and guidance

• 2025 GDP growth target for China is 5%, with proactive fiscal and moderately loose monetary policy.

• Government to issue RMB 1.3 trillion in ultra-long-term special bonds and RMB 4.4 trillion in local government special bonds to support infrastructure.

• Real estate market stabilization and rural construction initiatives expected to support building materials demand.

• Focus on cost reduction, digital transformation, and green development to enhance competitiveness.

• Expected capital expenditures for 2025 are approximately RMB 2,524 million.