Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — H1 FY2024 Earnings Presentation
33 slides from Ctf Services's earnings presentation, Feb 28, 2024
Slide 1: FY2024 Interim Results Presentation
FY2024 Interim Results Presentation 28 February 2024
Slide 2: Corporate structure
Corporate structure Cheng’s Family 1929.HK 77.83%* 17.HK 659.HK 825.HK Notes: * On 4 December 2023, the Hong Kong Stock Exchange granted a waiver for the strict compliance of public float requirement of 25% for a period of 6 months till 23 May 2024. The Scrip Dividend Scheme may help increase the pu
Slide 3: 5 Operating businesses as the Group's core focuses
5 Operating businesses as the Group’s core focuses Portfolio optimization since FY2019 was substantially completed and the 5 Operating Businesses as core focuses of the Group Business strategy that aims to create value for shareholders remains unchanged ROADS Continue to uphold prudent investm
Slide 4: Overall AOP HK$2,134M (+19% yoy)
Overview – for the 6-month ended 31 Dec 2023 Total available liquidity Overall AOP HK$30.4 Bn (as at 31 Dec 2023) HK$2,134M Cash on hand: HK$20.1Bn (+19% yoy) Committed undrawn banking facilities: HK$10.3Bn Net debt balance HK$14.3Bn* (as at 31 Dec 2023) Adjusted EBITDA HK$3,727M Net gearing rat
Slide 5: Financial highlights
Financial highlights 2023 2022 Fav./(Unfav.) For the six months ended 31 Dec (HK$’M) (HK$’M) change % (restated) Revenue 13,979 13,106 7 Attributable Operating Profit (AOP)1 2,134 1,792 19 of which: Operating businesses AOP2 2,105 1,608 31 • Increase in impairments made for certain investments, most
Slide 6: Performance by segment
Performance by segment 2023 2022 Fav./(Unfav.) For the six months ended 31 Dec (HK$’M) (HK$’M) change % (restated) Roads 816.7 684.5 19 Insurance 413.0 230.6 79 Logistics 356.8 417.7 (15) Construction 394.7 416.3 (5) Facilities Management 124.2 (127.8) 197 Strategic Investments 28.6 170.3 (83) Total
Slide 7: Operating businesses AOP
Operating businesses AOP1 Overall FY2024-1H vs ↑ 19% ↑ 79% ↓ 15% ↓ 2% ↑ 197% ↑ 31% FY2023-1H HK$’M 2,105 1,608 74 817 685 1,534 413 357 395 403 231 74 124 344 (Restated) (128) Roads Insurance 2 Logistics Construction (NWS Facilities Management Total Construction Group)3 FY2024-1H FY2023-1H IP valuat
Slide 8: Resilient financial performance
Resilient financial performance Recurring and Stable AOP Continuing Portfolio Growth Attributable operating profit Profit for the year/period Perp Total equity excl. Perp Total assets HK$’M HK$’M 162,749 6,000 154,505 5,249 150,052 152,573 148,771 5,000 4,707 4,371 4,097 4,000 3,514 4,259 86,065 3,0
Slide 9: Proactive financial management
Proactive financial management Issuance of the 2nd tranche of onshore RMB medium-term notes (“Panda Bonds”) in Nov 2023 RMB2.0Bn, 3.9% coupon, 3-year tenor Proceeds were earmarked for repayment of offshore debts of the Group Total issuance: RMB3.5Bn Remaining quota: RMB1.5Bn Further optimize
Slide 10: Solid financial position
Solid financial position Prudent Liabilities Management HK$’M Perp as Debt Net Debt (excl. Perp) 28,000 Net Gearing Ratio (incl. Perp as Debt) 60% Full redemption of outstanding principal amount of the 24,000 52% 45% 50% 2019 Perpetual Capital Securities at par in Jan 2024 20,000 8,140 40% 8,140 40%
Slide 11: Continue to crystalize & deliver value to shareholders
Continue to crystalize & deliver value to shareholders DPS (HK$) Interim ordinary Final ordinary One-off special One-off 1.79 special dividend 0.29 0.29 0.30 0.31 0.31 + Interim Total interim dividend 0.29 0.29 0.29 0.30 0.30 0.30 ordinary dividend FY2019 FY2020 FY2021 FY2022 FY2023 FY2024-1H Cont
Slide 12: Business Operations
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Slide 13: Continued recovery bodes well for Roads segment
Roads - 15 toll roads in the Mainland (c.940km) Continued recovery bodes well for Roads segment Segment AOP ► Like-for-like traffic flow and toll revenue +18% & +20% yoy, respectively, & exceeded pre-COVID-19 level YoY (FY2020-1H) by 12% & 5%, respectively HK$M ↑ 19% ► Major expressways1 contributed
Slide 14: Noticeable AOP achievement and sanguine growth outlook
Insurance – FTLife Insurance Noticeable AOP achievement and sanguine growth outlook Segment AOP ► If excluding one-off impact due to the adoption of HKFRS17, AOP of the Insurance Segment +22% yoy YoY ► Overall APE +188% yoy to HK$2,097.0M; gross written premium +21% yoy to HK$7,659.3M HK$M ↑79% ► VO
Slide 15: FY2024-1H Key figures
Insurance – FTLife Insurance FY2024-1H Key figures HK$677.8M HK$2,097.0M (+207% yoy) (+188% yoy) VONB APE 32% Market Ranking1: 1,900+ (FY2023-1H: 30%) HK$7,659.3M 10th Tied Agents VONB Margin (+21% yoy) 330+ Gross Written Brokers HK$20.1Bn3 Premium 7 314%3 Corporate Agency (+4% from 30 Solvency Rati
Slide 16: Stable operating performance
Logistics Stable operating performance Segment AOP ► Excluding IP valuation gain in FY2023-1H, Logistics segment’s AOP +4% yoy YoY HK$M ↓ 15% ► Logistics Asset & Management (“LA&M”) - Total gross leasable c.12.4M sqft Excluding IP valuation gain in FY2023-1H, LA&M’s AOP +8% yoy IP • ATL - Total gros
Slide 17: Logistics Outlook
Logistics ► CUIRC • Throughput +20% yoy to 3.3M TEUs in FY2024-1H on strong demand and Outlook increase in terminal capacity • Solid and incremental growth in ATL • AOP -18% yoy due to RMB depreciation, increase in operating expenses • 6 logistics properties in Chengdu, Wuhan & Suzhou remained resil
Slide 18: Hong Kong Government's determination to increase land and housing supply
Construction - NWS Construction Group1 (100%) & Investment in Wai Kee (11.5%) Hong Kong Government’s determination to increase land and housing supply Segment AOP strengthens sector outlook Wai Kee NWS Construction Group ► NWS Construction Group’s AOP remained stable at HK$395M; principally engaged
Slide 19: Turned around to AOP
Facilities Management Segment AOP Turned around to AOP HK$M YoY ► HKCEC – turned around to AOP from AOL in FY2023-2H ↑197% • Return of large-scale international & regional exhibitions & events and new events 124 • Number of events +7% yoy to 437 & total patronage +15% yoy to 3.9M (128) ► Free Duty –
Slide 20: Facilities Management Outlook
Facilities Management Outlook ► GHK Hospital – EBITDA grew by 284% yoy & AOL further narrowed • HKCEC is confident about a full recovery to the pre-COVID-19 level by the • EBITDA margin further improved end of 2024. HK Govt’s incentives also support the recovery of the • Inpatients, outpatients & da
Slide 21: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG)
Slide 22: ESG awards and recognitions
ESG Key ESG Awards and Recognitions Build Our Capacity Name of the Awards Awards and Recognitions Evolve Conference 2023 – Climate (Organization) Received Transition: Collaboration for Hang Seng Corporate Overall No.1 Score in Hang Seng Success Sustainability Index Corporate Sustainability Index Thi
Slide 23: ESG: Environment
ESG ENVIRONMENT Climate Transition Progress Updates Phase I Phase II Business segments where the net zero route is becoming clear and Business segments where the opportunities are less certain and low carbon commitments are already apparent with leading peers/value chain partners business models are
Slide 24: ESG: Social
ESG SOCIAL In FY2024-1H, 172 volunteer activities were organized in Hong Kong and Mainland China, contributing more than 7,000 community service hours and benefiting over 21,000 individuals. Additionally, 36 NWS volunteers dedicated more than 40 hours of service in FY2023. Highlighted Activities You
Slide 25: ESG: Governance
ESG GOVERNANCE Established the board-level Environmental, Social and Governance Committee (ESG Committee) • By consolidating the powers and functions previously held by the Corporate Governance Committee and Sustainability Committee, the ESG Committee ensures effective execution and alignment with s
Slide 26: Appendices
7 Fi al NWS Appendices
Slide 27: AOP by segment and geography in FY2024-1H
AOP by segment and geography in FY2024-1H Others 6% Mainland China Hong Kong FY2023 50% 44% 1H Appendix 38% Others 19% 17% 19% 1% 6% 1% Roads Insurance Logistics Construction Facilities Strategic FY2024 Management Investments Hong Kong Mainland China 56% 1H 43% 27
Slide 28: Roads: Portfolio of toll roads in the Mainland
ROADS Portfolio of 15 toll roads in the Mainland c.940km Guangdong Zhejiang Hubei Tianjin Shanxi Hunan Guangxi # of Roads 7 1 2 1 1 2 1 Appendix Length 313.9 km 103.4 km 137.34 km 60.67 km 36.02 km 89.08 km 198 km Concession Expiry 2024–2036 2029 2040–2050 2040 2025 2039–2044 2045 FY24-1H Cumulative
Slide 29: Insurance investment portfolio (as of Dec 2023)
Investment portfolio (as of 31 Dec 2023) INSURANCE Investment Portfolio AUM* (HK$'M) Asset Types 74,873 Bonds (Including 55,670 56,393 Bond Funds) 78% Other Listed Equities Assets & (Including Equity Appendix Cash Funds) 31 Dec 2021 31 Dec 2022 31 Dec 2023 8% Alternatives 9% * Exclude Investment-Lin
Slide 30: Investments in Logistics in Greater China
Investments in Logistics in Greater China LOGISTICS Investments in: • ANE (Cayman) Inc. • Worldex (全球捷運) 7 logistics properties in CUIRC • JD-Link (佳利達國際物流) Chengdu, Wuhan & Suzhou • Tangshi (湯氏供應鏈) • JV with China State Railway Group, Urumqi Jilin • Total gross leasable area: 6.5M sqft Inner PSA, C
Slide 31: Prime construction companies in HK
Prime construction companies in HK CONSTRUCTION Type of Projects1 Contracts On Hand (HK$’Bn) 9% 62 57 Commercial & 70 65 Residential 2 60 55 66% 50 45 40 35 30 25 Appendix 20 15 Government3 & 10 5 0 Institution 34% 30 Jun 23 31 Dec 23 Construction Backlog (HK$’Bn) 70 65 60 14% Note: 55 1. Based on b
Slide 32: Thank you
nt fall 32 ENWS Thank you
Slide 33: Disclaimer
Disclaimer NWS Holdings Limited (“NWS”) makes no representation or warranty of any kind, express, implied or statutory regarding the accuracy or completeness of the information contained. It is not the intention to provide, and you may not rely on this presentation as providing, all material informa