Horizon Construction Development (9930) H1 2024 earnings summary

Executive summary

• Maintained leading position in China's equipment operation service industry, with total assets of RMB 35.27 billion and 550 branches globally, serving 271,000 clients.

• Revenue for H1 2024 rose 15.8% YoY to RMB 4.87 billion, driven by engineering and technical services and asset management, despite a decline in operating lease services revenue.

• Net profit attributable to shareholders increased 13.1% YoY to RMB 268.2 million.

• EBITDA increased 2% YoY to RMB 2.0 billion.

• Interim dividend of HK$0.05 per share declared, payable October 31, 2024.

Financial highlights

• Revenue reached RMB 4.87 billion in H1 2024, up 15.8% YoY; EBITDA at RMB 2.0 billion, up 2% YoY; net profit at RMB 268.2 million, up 13.1% YoY.

• Basic EPS increased to RMB 0.084; BVPS rose to RMB 3.45.

• Asset management and other service revenue grew 84% YoY to RMB 1.03 billion; engineering technical services revenue up 70.6% YoY to RMB 1.95 billion.

• Operating lease services revenue fell 24.3% YoY to RMB 1.90 billion.

• Total assets grew 12.9% since year-end 2023 to RMB 35.27 billion; total equity reached RMB 11.03 billion.

Outlook and guidance

• Plans to densify domestic branch network, expand market share in China, and scale up overseas branches in Southeast Asia, Middle East, and North Africa.

• Focus on digitalization, product innovation, and asset management to enhance operational efficiency and client service.

• Will support advanced manufacturing, infrastructure, and Belt and Road Initiative projects.