China State Construction International (3311) H1 2024 earnings summary

Executive summary

• Revenue rose 12.1% year-over-year to HK$61.76 billion, with net profit up 12.7% to HK$5.47 billion and EPS up 12.7% to 108.48 HK cents.

• New contracts awarded reached HK$125.13 billion, up 29.2% year-over-year, with a backlog of HK$673.72 billion as of June 30, 2024.

• Dividend per share increased 20% to 33.00 HK cents, with payout ratio rising to 30.4%.

• Maintained a healthy financial position with positive operating cash flow and sufficient liquidity.

• Net asset value per share reached HK$15.39.

Financial highlights

• Gross profit increased 10.8% year-over-year to HK$9.55 billion; gross profit margin at 15.5%.

• Operating profit rose 10.3% to HK$8,570 million.

• Total assets grew 6.68% to HK$265.93 billion, equity rose 4.39% to HK$77.54 billion, and bank balances and cash increased 12.95% to HK$32.15 billion.

• Net gearing ratio at 69.8% as of June 30, 2024.

• Unutilised bank credit facilities at HK$59.83 billion.

Outlook and guidance

• Targeting double-digit net profit growth and new orders of no less than HK$210 billion for 2024.

• Management expects continued accumulation of positive factors in China's economy and resilience in Hong Kong and Macau for the second half of 2024.

• Plans to consolidate leadership in housing construction and focus on major infrastructure in Hong Kong and Macau.

• Tech-driven new orders to account for 50%, with accelerated MiC (modular integrated construction) development.

• Dividend payout ratio to be no less than 30%, with positive net operating cash flow maintained.