Yuexiu Transport Infrastructure (1052) H2 2025 earnings summary

Executive summary

• Revenue rose 12.0% year-over-year to RMB4.33 billion, driven by consolidation of Pinglin Expressway and growth in existing projects.

• Profit attributable to shareholders fell 18.9% to RMB533 million due to a one-off impairment of Daguangnan Expressway; adjusted profit (excluding impairment) rose 8.4% to RMB712 million.

• EBITDA increased 14.8% year-over-year to RMB3,745 million.

• Final dividend of HK$0.13 per share proposed, total annual dividend HK$0.25 per share, payout ratio 70.2%.

• Acquisition of 85% equity in Shandong Qinbin Expressway completed, enhancing long-term growth.

Financial highlights

• Gross profit increased 3.6% to RMB1.91 billion; gross margin declined to 44.1% from 47.6% due to higher amortisation costs.

• Operating profit decreased 15.2% to RMB1.39 billion.

• Finance costs fell 11.6% to RMB425 million, reflecting lower interest rates and improved debt structure.

• Basic and diluted EPS were RMB0.3185, down 18.9% year-over-year.

• Cash and cash equivalents rose 49.9% to RMB2.97 billion.

• Gearing ratio improved to 47.2% from 50.0%.

Outlook and guidance

• 2026 GDP growth target for China set at 4.5%-5.0%; transportation and logistics demand expected to remain robust.

• Focus on business expansion, innovation, and high-quality development under the 15th Five-Year Plan.

• Continued investment in smart transportation, green energy, and infrastructure projects.

• Management confident in meeting liabilities with available cash, facilities, and operating cash flow.