Kingboard Holdings (148) H2 2024 earnings summary

Executive summary

• Revenue increased 9% year-over-year to HK$43,093.3 million, driven by growth in electronics, automotive, and AI sectors.

• Underlying net profit declined 29% year-over-year to HK$1,622 million due to provisions for property-related losses.

• Laminates and PCB segments achieved year-over-year growth in both revenue and profits.

• Property division delivered stable rental income exceeding HK$1,400 million, offsetting weaker property sales.

• Significant provisions: HK$1,420 million for credit losses on loans and bonds, HK$220 million for impairment on unsold properties.

Financial highlights

• Revenue: HK$43,093.3 million (+9% YoY); EBITDA: HK$5,865.0 million (-4% YoY); Profit before tax: HK$2,754.3 million (-9% YoY).

• Net profit attributable to owners: HK$1,630.3 million (-21% YoY); Underlying net profit: HK$1,622.0 million (-29% YoY).

• Basic EPS: HK$1.471 (-21% YoY); Dividend per share: HK140 cents (+37% YoY).

• Net asset value per share: HK$54.0; Net gearing: 28%.

• Special and interim dividends declared; proposed final and special final dividends subject to approval.

Outlook and guidance

• Management expects continued geopolitical tensions and industry volatility in 2025.

• Focus on cash flow, cost control, and leveraging vertical integration and diversified business portfolio.

• Laminates and PCB divisions anticipate robust demand, capacity expansions in Thailand and Vietnam planned.

• Chemicals division to benefit from new projects and green transformation initiatives.

• Property division to maintain prudent strategy, with rental income expected to exceed HK$1,400 million in 2025.