Tan Chong International (693) H2 2024 earnings summary

Executive summary

• Revenue declined 8% year-over-year to HK$12.7 billion, mainly due to headwinds in the automotive division and global industry transformation.

• Profit after tax surged 60% to HK$609.5 million, driven by property reclassification gains and strong logistics performance in Japan.

• EBITDA rose 13.2% to HK$1.8 billion, and operating profit margin improved to 8.6% from 6.2%.

• Strategic initiatives included property portfolio enhancements, cost controls, and the closure of the Thailand Subaru plant.

• Employee count decreased 11% to 4,912, reflecting business rationalisation.

Financial highlights

• Revenue: HK$12.7 billion (down 8% year-over-year).

• Profit after tax: HK$609.5 million (up 60% year-over-year).

• EBITDA: HK$1.77 billion (up 13.2% year-over-year).

• Net asset per share: HK$6.04 (down from HK$6.08 in 2023).

• Final dividend proposed: HK$0.055 per share; total dividend per share for 2024: HK$0.075.

Outlook and guidance

• Cautious optimism for 2025 in Singapore and Hong Kong, with new hybrid models expected to drive growth.

• Anticipates continued industry competition and global uncertainty due to geopolitical and regulatory changes.

• Ongoing asset optimisation in Thailand and potential separate listing of ETHOZ Group in 2H 2025.