KLN Logistics Group (636) H2 2024 earnings summary

Executive summary

• Revenue grew 23% year-over-year to HK$58,274 million, driven by strong performance in International Freight Forwarding and robust demand in the Americas and Asia.

• Core net profit from continuing operations increased 12% year-over-year to HK$1,357 million, while profit attributable to shareholders surged 95% to HK$1,542 million, reflecting gains from discontinued operations.

• Core operating profit rose 23% year-over-year to HK$2,725 million.

• The group completed the distribution of its entire stake in KEX Express Thailand, ceasing certain express operations in Asia and focusing on core logistics and freight forwarding.

• The company maintained a healthy financial structure, with improved debt ratios and a final dividend of 15 HK cents per share proposed.

Financial highlights

• Revenue: HK$58,274 million (2024), up 23% year-over-year.

• Core operating profit: HK$2,725 million, up 23% year-over-year.

• Core net profit: HK$1,357 million, up 12% year-over-year.

• Profit attributable to shareholders: HK$1,542 million, up 95% year-over-year.

• Final dividend: 15 HK cents per share proposed.

Outlook and guidance

• Persistent volatility in global trade policy and protectionism expected in 2025, with supply chain anomalies likely to continue.

• The group aims to deepen value chains in Hong Kong and Mainland China, accelerate integration, and expand in Southeast and South Asia.

• IFF business to leverage market coverage and flexible offerings to capture opportunities from supply chain reshuffling.