Zhejiang Expressway (576) H1 2024 earnings summary

Executive summary

• Revenue for 1H2024 rose 1.4% year-over-year to Rmb8,367.60 million, with toll road business contributing 61.1% and securities business 33.5%.

• Profit attributable to owners increased 4.7% year-over-year to Rmb2,680.01 million, while net profit was Rmb3,343.81 million; basic EPS was Rmb44.72 cents, down 20.4%.

• Core expressway business saw steady growth, offsetting weaker securities results, and outperformed the industry average despite a revenue decline.

• No interim dividend was declared or recommended for 2024.

Financial highlights

• Gross profit rose 6.4% year-over-year to Rmb3,686.43 million.

• Securities investment gains dropped 35.1% to Rmb574.77 million.

• Net cash from operating activities was Rmb6,491.97 million.

• 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 are expected to continue growing in 2H2024, supported by macroeconomic recovery and targeted strategies.

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

• Strategies emphasize operational efficiency, cost reduction, brand enhancement, and M&A for core business expansion.