Jiangsu Expressway Company (177) H1 2024 earnings summary

Executive summary

• Operating revenue rose 39.57% year-on-year to RMB9,960 million, driven by increased construction investment and higher toll and service revenues, with net profit attributable to shareholders up 10.74% to RMB2,748 million and EPS at RMB0.5456.

• Total assets grew 7.46% to RMB84,527 million, and net assets attributable to shareholders increased 2.56% to RMB34,858 million, with weighted average ROE at 7.72%.

• The Group advanced major infrastructure projects, including Longtan Bridge, Xiyi Expressway Widening, and Xitai Project, with significant capital investment.

• The company maintained stable development momentum, focusing on core business, innovation, and efficiency improvements.

Financial highlights

• Operating revenue: RMB9,960 million, up 39.57% year-on-year; net profit attributable to shareholders: RMB2,748 million, up 10.74% year-on-year.

• Net cash flow from operating activities: RMB3,078 million, down 15.23% year-on-year due to higher tax expenses and reduced factoring business.

• Gross profit margin: 30.03%, down 14.95 percentage points year-on-year, mainly due to increased construction and maintenance costs.

• Investment income surged 71.01% year-on-year to RMB1.05 billion, mainly from earlier dividend payouts and higher associate contributions.

• Weighted average return on net assets: 7.72%.

Outlook and guidance

• Planned capital expenditures for H2 2024: RMB7.86 billion, focusing on major infrastructure projects and new energy investments.

• Sufficient unutilized bank loan facilities (>RMB10 billion) and plans to register up to RMB8 billion in new bonds and notes.

• Continued focus on core expressway business, digital transformation, and expansion into new energy and financial sectors.