GUANGDONG INVESTMENT (270) H1 2024 earnings summary

Executive summary

• Revenue for 1H24 rose 8.1% year-over-year to HK$12,291 million, mainly driven by property investment and development.

• Profit attributable to owners was HK$2,411 million, down 4.6% year-over-year; basic EPS at HK36.88 cents.

• Interim dividend per share declared at HK23.97 cents, up 28.1% from last year, with a payout ratio of 65%.

• Net cash inflows from operating activities increased to HK$4,876 million from HK$4,354 million in 1H23.

• Equity attributable to owners increased by HK$1,316 million to HK$43,118 million as of June 2024.

Financial highlights

• Group financial borrowings decreased to HK$41,645 million as of June 2024.

• Gearing ratio improved to 71.1% from 77.3% at end-2023.

• EBITDA/finance cost ratio increased to 6.7x from 4.3x.

• Net finance costs rose to HK$522 million (2023: HK$471 million).

• Cash and bank balances increased to HK$13,135 million as of June 2024.

Outlook and guidance

• Management expects global economic growth to slow in H2 2024 due to monetary tightening and geopolitical uncertainties.

• Plans to expand the water resources value chain, pursue high-value-added business, and seek acquisition opportunities in the Greater Bay Area.

• Hong Kong water supply arrangement secured through 2026, with annual revenue projected to rise from HK$5.06–5.14 billion in 2024 to HK$5.32–5.39 billion in 2026.

• Cautious outlook for H2 2024 due to global economic headwinds, but expects stable growth in core operations.