Ten Pao (1979) H2 2024 earnings summary

Executive summary

• Revenue rose 11.7% year-over-year to HK$5,385.7 million, driven by strong growth in new energy and smart charger segments.

• Gross profit increased 15.5% to HK$1,048.2 million, with margin up to 19.5%.

• Profit attributable to owners grew 16.7% to HK$383.9 million; EPS reached HK37.3 cents.

• Final dividend of HK6.0 cents per share proposed, total annual payout HK11.2 cents, 30% payout ratio.

• Maintained robust cash flow and strong financial position amid global economic uncertainties.

Financial highlights

• Revenue: HK$5,385.7 million (+11.7% YoY); gross profit: HK$1,048.2 million (+15.5% YoY).

• Profit before tax: HK$427.0 million (+10.1% YoY); net profit: HK$383.9 million (+16.7% YoY).

• Gross margin: 19.5% (up 0.7 ppt YoY); effective tax rate: 10.2%.

• Cash generated from operations: HK$813.7 million; net cash used in financing: HK$276.4 million.

• Gearing ratio: 35.1% (7.7% excluding secured bills); current ratio: 1.10x.

Outlook and guidance

• Expects significant growth in new energy business in 2025, driven by new international EV charging standards.

• Focus on green, low-carbon development, technological innovation, and expansion in Africa and Southeast Asia.

• Plans to enhance production capacity with new Huizhou Chuangneng Industrial Park and Vietnam factory.

• Anticipates continued demand for smart controllers and industrial power supplies, leveraging AI and digitalization trends.

• Committed to sustainable growth and shareholder returns through product innovation and market expansion.