Ctf Services Limited · HKEX:659
Ctf Services — H1 FY2025 Earnings Presentation
51 slides from Ctf Services's earnings presentation, 2025
Slide 1: CTF Services Limited (659.HK) FY2025 Interim Results Presentation
CTF Services Limited (659.HK) FY2025 Interim Results Presentation
Slide 2: CTFS at a Glance
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 3: Investment Thesis
Investment Thesis Growing solid businesses generate strong and predictable cash flow, supports sustainable dividend Operational excellence across Proactive and prudent financial diversified businesses contributes management and diversified to resilient earnings sources of funding Strong cash flow ge
Slide 4: Corporate Structure
Corporate Structure Cohesive synergies among business units of the prominent shareholder Since mid-November 2023, CTFS is majority owned by Chow Tai Fook Enterprises Limited and in turn by the Cheng Family, one of the most prominent families in Hong Kong. The Cheng Family’s diversified investments a
Slide 5: FY25-1H AOP of Operating Businesses up 8% YoY
FY25-1H AOP1 of Operating Businesses2 up 8% YoY Performance remained solid despite macroeconomic headwinds % of Group’s Total AOP4 by Location Roads Insurance Logistics Construction Facilities (incl. all segments) AOP of Management Operating Businesses 35% 28% 17% 18% 2% Others Others 1% 3% AOP by S
Slide 6: Continual Portfolio Optimization
Continual Portfolio Optimization Enhance earnings quality, cash flow & long-term growth potential FY18 to FY24 FY25 Suiyuenan Expy Chow Tai Fook Life Insurance Co Ltd Hsin Chong Aster Building Services Ltd* Key Acquisitions Sui-yue Expy (formerly known as FTLife Insurance) Changliu Expy Seven logist
Slide 7: Business Strategy & Outlook
Business Strategy & Outlook Uphold vigilance in investment decisions & business operations • Maintain agility and efficiency in daily operations • Capture opportunities to enhance shareholders’ return (e.g. expansion projects) • Increase synergies within the CTF Group • Improve solvency ratio by ass
Slide 8: Financial Update
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 9: FY25-1H Financial Results Highlights
FY25-1H Financial Results Highlights Resilient growth & strong credit position As at 31 Dec 2024 AOP of Profit Attributable Cash on Hand Committed undrawn Operating Businesses to Shareholders c.HK$18.6Bn banking facilities HK$2,209M HK$1,158M c.HK$11.3Bn +8% YoY +15% YoY Total available liquidity c.
Slide 10: Proactive & Strategic Financial Management
Proactive & Strategic Financial Management Healthy debt profile escorts sustainable business development RMB Debt to Total Debt RMB Liabilities to RMB Assets Fixed Rate Debt to Total Debt 60% 63% 68% 78% 54% 43% 65% 39% 37% 30 Jun 23 30 Jun 24 31 Dec 24 30 Jun 23 30 Jun 24 31 Dec 24 30 Jun 23 30 Jun
Slide 11: Diversified Funding Sources
Diversified Funding Sources Prudent financial management supports robust credit ratings Aug 2024 Credit rating • Total issuance of Panda Bonds US$400.0M Senior Notes due 2028 in the interbank market since Offshore Issue price: 99.265% May 2023: RMB3.6Bn (coupon Coupon: 6.375% p.a. rate: 3.55%-3.9%)
Slide 12: Resilient Financial Profile
Resilient Financial Profile Judicious financial management with strategic leverage Acquisition Strong cash flow generation and non-core • Public perp redeemed Private perp of CTF Life disposals to bring down leverage despite • Special dividend paid redeemed Insurance a series of value-accretive acqu
Slide 13: Solid Financial Position
Solid Financial Position Prudent financial management safeguards balance sheet strength Growing profit despite market volatilities Healthy Net Debt/Adjusted EBITDA HK$’M Profit for the year/period 2,620 2.2x 2.3x * 2,184 2.1x 2,083 1,708 1.5x 1,265 828 0.8x FY21 FY22 FY23 FY24 FY25-1H FY20 FY21 FY22
Slide 14: Committed to Sustainable and Progressive Dividend Policy since FY19
Committed to Sustainable and Progressive Dividend Policy since FY19 Proven track record of continuous returning cash to shareholders 22 DPS (HK$) consecutive years of dividend payments 1.79 Attractive cash dividend: 0.31 0.31 0.35 0.30 FY24 ordinary DPS divided by 0.29 0.29 0.30 current share price
Slide 15: Issuance of Convertible Bonds
Issuance of Convertible Bonds Primary objective: expand the public float To restore the public float to meet the minimum requirement of 25% in the Listing Rules1 Minimal Dilution Amount: HK$780M Coupon: 4% p.a. Maturity Date: 6 months till Jul 2025 Initial conversion price2: HK$8.043 Short Duration
Slide 16: Business Operation Update
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 17: Roads
Roads Well-diversified toll road portfolio as at 31 Dec 2024 14 projects across the Mainland Tianjin c. 916 km 1 Expressway Length:60.7km Concession Expiry: 2040 Shanxi 1 Roadway Hubei Length:36.0km Zhejiang 2 Expressways Concession Expiry: 2025 1 Expressway Length: 137.4km Concession Expiry: 2040-2
Slide 18: Roads
Roads Projects located in seven strategic locations in the Mainland with stable development Segment AOP1 • Despite steady travel demand from the Group’s expressways, total AOP of the Roads segment declined mainly due to the expiry of concession period for Guangzhou City Northern Ring Road HK$M YoY ↓
Slide 19: Insurance
Insurance CTF Life – Building on a legacy of trust, powered by CTF Group • Rebranded as “CTF Life” in Jul 2024 • Capitalize on CTF Group’s established brand (including CTF Jewellery’s 95-year history within Asian communities) providing a strong foundation for CTF Life’s growth • Leverage the diverse
Slide 20: Insurance
Insurance CTF Life – Delivered solid operating metrics in FY25-1H VONB Margin CSM Balance2 with 19% CAGR Robust CSM Release HK$’Bn HK$’M FY24-1H vs FY25-1H 52% 9.2 8.2 7.1 6.0 505 570 34% 376 27% FY24 FY25-1H As of 30-Jun-23 31-Dec-23 30-Jun-24 31-Dec-24 FY24-1H FY24-2H FY25-1H Investment Income1 Em
Slide 21: Insurance
Insurance CTF Life – Noticeable AOP & CSM achievement; Enhanced agency productivity • AOP +49% YoY to HK$614.3M mainly driven by increase in CSM release due to business growth Segment AOP • APE -26% YoY to HK$1,547.4M primarily due to release of pent-up demand from Mainland Chinese visitors HK$M (“M
Slide 22: Insurance
Insurance CTF Life is committed to product innovation & excellence MyWealth Savings Insurance Plan 2 MediChamp Insurance Plan FamCare 198 Critical Illness Protector - with reversionary bonus and terminal bonus o 2/5/10 years premium payment period options o Medical plan for high net worth individual
Slide 23: Insurance
Insurance CTF Life – Investment portfolio (as of 31 Dec 2024) Fast-growing Investment Portfolio AUM* (HK$'M) Prudent Asset Allocation Bonds (Including CAGR=21% Bond Funds) 81,900 72% 74,873 56,393 Listed Equities (Including Equity Funds) Other Assets & 13% Cash Alternatives 31 Dec 22 31 Dec 23 31 De
Slide 24: Logistics
Logistics Diversified logistics investments spread out Greater China 7 logistics properties China United International Rail Containers in Chengdu, Wuhan & Co. Ltd. (“CUIRC”) (30% interest) Suzhou • JV with China State Railway Group, Urumqi Jilin • Total gross leasable area: Inner PSA, CIMC & Deutsch
Slide 25: Logistics
Logistics Logistics assets portfolio with desirable geographical positioning & high occupancy rate Segment AOP Logistics Asset & Management (“LA&M”) HK$M YoY • ATL Logistics Centre - total gross leasable area c.5.9M sqft ↑ 9% Occupancy rate Average rental change 93.6% (As at 30 Jun 2024: 96.3%) +1
Slide 26: Logistics
Logistics Maintain resiliency & growth to bring long-term benefits for the Group • ATL Logistics Centre will continue to maintain its preeminent position by leveraging its superior warehouse facilities and unparalleled location • The Mainland logistics industry is poised for sustainable development
Slide 27: Construction
Construction Premium construction companies with a proven record in HK Segment AOP Contracts on hand Backlog New contracts c.HK$ 48.9Bn c.HK$ 28.3Bn awarded2 in FY25-1H HK$M 4.5Bn YoY Flat (as at 31 Dec 2024) (as at 31 Dec 2024) c.HK$ 395 391 Type of Projects • Strategically shifted its focus toward
Slide 28: Construction
Construction CTFS Construction Group’s iconic projects ► Founded in 1961, Hip Hing Group provides comprehensive project management services to clients in design, procurement, engineering and construction CTFS Construction ► Founded in 1929, Vibro Group is the oldest foundation contractor in HK Group
Slide 29: Northern Metropolis Development Plan
Northern Metropolis Development Plan A significant opportunity for CTFS Construction Group It is the government's initiative to develop the northern part of HK, close to Shenzhen, into a metropolitan area suitable for living, working, and traveling. This plan encompasses 30,000 hectares, represent
Slide 30: Construction
Construction CTFS Construction Group’s iconic projects Transport Department's Vehicle Examination Centre Xiqu Centre Innocell (pilot project of using MiC) Inland Revenue Centre 30 LegCo Complex Expansion Project (MiC)
Slide 31: Facilities Management
Facilities Management Manage & operate a mix of facilities HKCEC Segment AOP* • Subdued food and beverage revenue resulting from reduced banquet events amid a sluggish Excl. Free Duty economy (divested in Dec 2024) • No. of events to 426 and total patronage +9% YoY to 4.6M HK$M YoY • By delivering e
Slide 32: Facilities Management
Facilities Management GHK Hospital – consistent progress driven by premier healthcare service & enhanced reputation GHK Hospital (30% (CTFS -interest) 40% interest & IHH Healthcare Berhad - 60% interest) Parkway Medical Services • EBITDA +35% YoY, EBITDA margin continued to improve A new clinic on
Slide 33: Facilities Management
Facilities Management GHK & PMS – provide a multi-specialty hospital, clinics and laboratory services Gleneagles Medical Clinic Gleneagles Primo Central, Hong Kong Surgical Centre Gleneagles Healthcare • general and specialist outpatient • diagnostic and treatment services for Novum Place, Hong Kong
Slide 34: Environment, Social & Governance (ESG)
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 35: ESG
ESG Performances ESG Ratings ESG Awards and Recognitions The Hong Kong Management Association Hong Kong Sustainability Award 2024 Merit Award (Large Organization Category) Best Annual Reports Award 2024 Excellent Report Award • Overall score increased from 82.56 (2023-2024) to 83.65 The Chamber of H
Slide 36: ESG
ESG Breakthrough 2050 Key Pillars Targets Act with Integrity Business Ethics and Anti-Corruption Acting with integrity is our most important and inherent core value. It ensures • 0 convicted cases on anti-corruption fairness and a high level of ethical standards in our work. Integrity supports the g
Slide 37: ESG
ESG CTFS Decarbonisation Roadmap Development Progress Hip Hing and CTF Life Committed to SBTi Near Term Target • Hip Hing Construction and CTF Life Insurance, both wholly-owned subsidiaries of CTFS, have committed for carbon reduction and proposed short-term targets to the SBTi. • CTF Life has becom
Slide 38: ESG
ESG Social 149 6,178 15,264 29 1H FY2025 Volunteer activities Volunteering hours Beneficiaries Volunteers were arranged acknowledged during anniversary Highlights 23rd Volunteer Alliance Anniversary CNY Volunteer Rally 2025 The anniversary was held on 16 November. CNY volunteer rally has successfull
Slide 39: Appendices
CTFS Appendices
Slide 40: FY25-1H Adjusted EBITDA Analysis
FY25-1H Adjusted EBITDA Analysis Adjusted EBITDA includes dividend from JVs/assocs is the operating cash flow proxy HK$’M 4,000 627 3,557 3,500 223 3,000 903 (43) Dividends 2,500 Net loss on received FV of Others from investment associated 2,000 1,847 properties companies Depreciation and JV & 1,500
Slide 41: FY25-1H Financial Summary
FY25-1H Financial Summary Profit attributable to shareholders increased robustly by 15% YoY HK$’M 2,500 2,225 (90) (307) 81 (505) 2,000 Net loss on 43 fair value of investment Gain on Share of disposal non-operating properties, Impairments, (1) (179) 1,500 net of tax remeasurement of a income of a p
Slide 42: Board of Directors
Appendix Board of Directors Dr Cheng Kar Shun, Henry GBM, GBS Chairman Mr Cheng Chi Ming, Brian Mr Ho Gilbert Chi Hang Mr Lam Jim Mr Cheng Chi Leong, Christopher Executive Director and Executive Director and Executive Director and Executive Director Group Co-Chief Executive Officer Group Co-Chief Ex
Slide 43: Management Team
Appendix Management Team Dr Cheng Kar Shun, Henry GBM, GBS Chairman Dr Cheng, aged 77, is the Chairman of the Executive Committee of the Company and a director of a subsidiary of the Group. Dr Cheng is the Chairman and an executive director of NWD and Chow Tai Fook Jewellery Group Limited, the Chair
Slide 44: Management Team
Appendix Management Team Mr Cheng Chi Ming, Brian Mr Ho Gilbert Chi Hang Executive Director and Executive Director and Group Co-Chief Executive Officer Group Co-Chief Executive Officer Mr Cheng, aged 41, joined the Company in January 2008 and is the Executive Mr Ho, aged 48, is the Executive Directo
Slide 45: Management Team
Appendix Management Team Mr Lam Jim Mr Cheng Chi Leong, Christopher Executive Director and Executive Director Group Chief Operating and Financial Officer Mr Lam, aged 54, is the Executive Director and Group Chief Operating and Mr Cheng, aged 35, is the Executive Director of the Company. He is also a
Slide 46: Expressway Projects Summary of FY2025-1H
Appendix Expressway Projects Summary of FY2025-1H FY2025-1H Attributable Projects Province Length Lanes Expiry Date Average Daily Interest Traffic Flow Beijing-Zhuhai Expressway Guangdong 25% Section 1: 8.6 km Section 1: Dual 3-Lane 2030 205,600 (Guangzhou-Zhuhai Section) 1,2 Section 2: 49.59 km Sec
Slide 47: Logistics Projects Summary of FY2024
Appendix Logistics Projects Summary of FY2024 FY2024 Attributable Gross Leasable Area FY2024 Project Location Operation Date Expiry Date Occupancy Interest (sq m) Capitalization Rate Rate ATL Logistics Centre Hong Kong Hong Kong 56% 551,846 Phase 1: February 1987 2047 96.3% Limited Phase 2: March 19
Slide 48: Logistics Projects Summary of FY2025-1H
Appendix Logistics Projects Summary of FY2025-1H FY2025-1H Attributable Throughout Project Investment Scope Handling Capacity Location and Operation Date Expiry Date Interest Achieved (TEUs) China United International Rail Pivotal rail container terminal 30% 6.6 million TEUs/year Kunming: January 20
Slide 49: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement (Unaudited) For the six months ended 31 December 2024 2023 HK$’m HK$’m Revenue Non-insurance 10,120.8 12,361.6 Insurance 1,988.9 1,616.9 12,109.7 13,978.5 Cost of sales (8,770.6) (10,804.4) Insurance service expenses (1,420.7) (1,253.1) Net (expenses)/income f
Slide 50: Thank you
CTFS Thank you
Slide 51: Disclaimer
Disclaimer CTF Services Limited (“CTFS”) 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 inform