Zhejiang Expressway (576) H1 2024 earnings summary

Executive summary

• Revenue rose 1.4% year-over-year to Rmb8,367.60 million, with profit attributable to owners up 4.7% to Rmb2,680.01 million, despite a 20.4% drop in basic EPS to Rmb44.72 cents.

• Core expressway business saw steady growth, while securities business outperformed industry average despite a revenue decline of 11.2%.

• No interim dividend was recommended or declared for 2024.

• Toll road revenue grew 2.2% year-over-year, while securities business faced industry-wide headwinds.

Financial highlights

• Toll operation revenue increased 2.2% year-over-year to Rmb5,112.57 million, accounting for 61.1% of total revenue.

• Securities business revenue fell 11.2% to Rmb2,805.94 million, making up 35.5% of total revenue.

• Gross profit increased to Rmb3,686.43 million from Rmb3,464.55 million year-on-year.

• Basic EPS dropped 20.4% to Rmb44.72 cents; diluted EPS down 18.4% to Rmb44.04 cents.

• Return on owners' equity was 6.6%, down 20.5% year-over-year.

Outlook and guidance

• Expressway traffic and toll revenue expected to continue growing in H2 2024, supported by stable macroeconomic trends and targeted strategies.

• Securities business faces ongoing market volatility and regulatory challenges but will focus on risk management, service integration, and digital transformation.

• Continued investment in digitalization, intelligent technology, and expansion of core business through M&A and new projects.