Zhejiang Expressway (576) H2 2024 earnings summary

Executive summary

• Revenue rose 6.5% year-over-year to RMB18,064.82 million, with profit attributable to owners up 5.3% to RMB5,501.59 million.

• Toll road operations contributed 59% of revenue, growing 2.3% year-over-year, while securities business revenue declined 3% amid market volatility.

• Basic EPS was RMB91.79 cents, down 18.7% year-over-year; diluted EPS was RMB90.50 cents, down 14.1%.

• A dividend of RMB38.5 cents per share was recommended, pending AGM approval.

Financial highlights

• Gross profit increased to RMB7,252.46 million from RMB7,199.34 million in 2023.

• Securities investment gains rose to RMB1,735.12 million from RMB1,024.96 million year-over-year.

• Total comprehensive income attributable to owners was RMB5,884.21 million.

• Return on owners' equity was 11.9%, down 25.6% year-over-year.

• Interest cover ratio improved to 6.1x from 4.7x in 2023.

Outlook and guidance

• Expressway business expected to benefit from China's economic recovery, new energy, and digital economy trends, but faces policy and cost pressures.

• Securities business anticipates opportunities from market recovery and industry reforms, but also faces intensified competition and regulatory tightening.

• Focus on expanding core business, technological innovation, and green transformation.