Zhejiang Expressway (576) H2 2024 earnings summary

Executive summary

• Revenue increased 6.5% year-over-year to RMB 18,065 million, with net profit rising 8.1% to RMB 7,156 million; profit attributable to owners was RMB 5,501.59 million, up 5.3%.

• Toll road business contributed 59.02% of revenue and 61.51% of net profit, growing 2.3% year-over-year, while securities business accounted for 34.23% of revenue but declined 3% amid market volatility.

• Major investments included full acquisition of Yonglan Expressway and a 51% stake in Ningbo-Zhoushan Expressway Parallel Line Phase II.

• Basic EPS was RMB 91.79 cents, down 18.7% year-over-year; diluted EPS was RMB 90.50 cents, down 14.1%.

• A dividend of RMB 38.5 cents per share was recommended, pending AGM approval.

Financial highlights

• Gross profit rose 0.7% year-over-year to RMB 7,252 million.

• Securities investment gains surged 69.3% to RMB 1,735 million.

• Finance costs decreased 17.2% to RMB 1,742 million.

• Total comprehensive income attributable to owners was RMB 5,884.21 million.

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

Outlook and guidance

• 2025 outlook anticipates continued economic recovery in China, with proactive macro policies and increased logistics demand.

• Expressway business expected to benefit from 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.

• Growth strategies focus on service quality, core business expansion, integration of transportation and energy, and digital transformation.