Ctf Services Limited · HKEX:659

Ctf Services — H1 FY2026 Earnings Presentation

50 slides from Ctf Services's earnings presentation, 2026

  1. Slide 1: CTF Services Limited FY2026 Interim Results Presentation

    CTF Services Limited (659.HK) FY2026 Interim Results Presentation

  2. Slide 2: Agenda

    Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)

  3. Slide 3: FY26-1H Results Highlights

    FY26-1H Results Highlights Overall solid earnings with steady growth Financial Services segment delivered strong growth momentum as a core earnings driver Continued portfolio optimization by streamlining stagnant assets to strengthen financial flexibility and support growth initiatives in Financial

  4. Slide 4: Sharpening the Portfolio for Sustainable, Long-Term Growth

    Sharpening the Portfolio for Sustainable, Long-Term Growth • Streamlined the portfolio through the divestment of stagnant assets • Deployed capital into attractive-return, cash-generative growth segments that reinforce our core strategic focus • Completed acquisition of 13.05% stake in uSmart Inlet

  5. Slide 5: Investment Thesis

    Investment Thesis Agile management of diversified businesses to drive strong cash flow & enhance long-term shareholder returns Prioritizes disciplined capital Expansion of Financial Services stewardship in pursuing growth, and Logistics segments focusing on businesses with strong strengthens earning

  6. Slide 6: FY26-1H Group's AOP up 3% YoY to HK$2,284M

    FY26-1H Group’s AOP1 up 3% YoY to HK$2,284M Solid group performance despite subdued market conditions % of Group’s AOP AOP by Location 34% 32% 15% 13% 2% 4% Others 3% AOP by Segment Chinese Hong Kong Mainland FY25-1H 58% YoY 1% 19% 14% 21% 360% 78% 39% HK$M Others 6% 767 771 729 614 388 391 Chinese

  7. Slide 7: Business Strategy & Outlook

    Business Strategy & Outlook Takes a prudent and disciplined stance on capital deployment and operational management Roads ➢ Drive operational agility to manage changing traffic patterns and competitive dynamics ➢ Ongoing portfolio review given sector-wide headwinds and limited new projects meeting r

  8. Slide 8: Business Strategy & Outlook

    Business Strategy & Outlook Takes a prudent and disciplined stance on capital deployment and operational management Construction ➢ Leveraging strong market positioning to capture opportunities from HK government and institutional projects and expanding into higher-margin clients ➢ Northern Metropoli

  9. Slide 9: Agenda

    Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)

  10. Slide 10: FY26-1H Financial Results Highlights

    FY26-1H Financial Results Highlights Continuous growth; Maintain flexibility to support future growth and strategic initiative Profit Attributable Committed undrawn AOP to Shareholders Cash on Hand (as at 31 Dec 2025) banking facilities HK$2,284M HK$1,334M (as at 31 Dec 2025) +3% YoY +15% YoY c.HK$2

  11. Slide 11: Proactive & Strategic Financial Management

    Proactive & Strategic Financial Management Healthy debt profile to enhance financial resilience Use RMB Liabilities to Provide a RMB Debt to Total Debt Fixed Rate Debt to Total Debt Natural Hedge for RMB Assets 80% 76% 70% 76% 62% 65% 54% 61% 60% 30 Jun 24 30 Jun 25 31 Dec 25 30 Jun 24 30 Jun 25 31

  12. Slide 12: Diversified Funding Sources

    Diversified Funding Sources Strengthened debt structure supports robust credit ratings Banking Facilities Convertible Bonds (CBs) (onshore + offshore) Credit Rating Undrawn committed c.HK$10.1Bn HK$850M 2.8% CBs due Jan 2027 • Tenor: 18 months (issued in Jul 2025) Offshore • Conversion price : HK$6.

  13. Slide 13: Issuance of Exchangeable Bonds

    Issuance of Exchangeable Bonds Issue date: 3 Oct 2025 Issue size: HK$2,218M PROCEEDS Coupon: 0.75% p.a. from Issuance Issue price:103% Maturity Date: 3 years till 2028 c. HK$2.25 Bn Ordinary shares of Shoucheng Holdings (0697.HK 首程控股) Exchange at initial exchange price of HK$2.6565 per Shoucheng Sha

  14. Slide 14: Resilient Financial Profile

    Resilient Financial Profile Strategic leverage under judicious financial management Strong cash flow generation and non-core • Public perp redeemed • Private perp redeemed partially Acquisition disposals to bring down leverage despite a • Special dividend paid to • Special dividend paid to return ca

  15. Slide 15: Solid Financial Performance

    Solid Financial Performance Sustainable financial growth safeguards robust earnings quality Growing AOP despite Market Volatilities Continual Profit Attributable to Shareholders Growth HK$’M HK$’M 2,134 2,225 2,284 1,334 1,158 1,792 1,009 853 FY23-1H FY24-1H FY25-1H FY26-1H FY23-1H FY24-1H FY25-1H F

  16. Slide 16: 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 Attractive cash dividend vs. 10-year US treasury yield 4.1%1 ) DPS (HK$) • +c.3% YoY on a Enlarged share comparable basis capital base following the (after adjusting F

  17. Slide 17: Robust share price performance underpinned by improving trading turnover

    Robust share price performance underpinned by continuously Corporate Business improving trading turnover Updates • Public float increased from 22.17% on 23 2024 2025 Change 2025 2026 Change Share price return YTD 2026 +15% Nov 2023 to >25%, restoring compliance Jan-Feb Jan-Feb (as at 16 Mar 2026) wi

  18. Slide 18: Agenda

    Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)

  19. Slide 19: Roads: 13 projects, c. 880 km

    Roads Well-diversified toll road portfolio located in six strategic locations in the Chinese Mainland Tianjin 1 Expressway 13 projects Length:60.7km Concession Expiry: 2040 c. 880 km Hubei Zhejiang 2 Expressways 1 Expressway Length: 137.4km Length: 103.4km Concession Expiry: 2040-2050 Concession Exp

  20. Slide 20: Roads

    Roads A stable performance despite a challenging environment Segment AOP • AOP of the Roads segment moderately increased was mainly attributable to lower finance costs, which were partially offset by uneven traffic recovery HK$M YoY  1% • Excluding Shanxi Taiyuan-Gujiao Roadway (Gujiao Section), wh

  21. Slide 21: Financial Services: CTF Life legacy of trust

    Financial Services CTF Life – Building on a legacy of trust, powered by Chow Tai Fook Group • Capitalize on Chow Tai Fook Group’s established brand (including Chow Tai Fook Jewellery’s 95+ year history within Asian communities) providing a strong foundation for CTF Life’s growth • Competitive edge:

  22. Slide 22: CTF Life: Strong AOP & CSM Growth Momentum

    Financial Services CTF Life – Strong AOP & CSM1 Growth Momentum Segment AOP • Segment AOP +19% YoY to HK$729M mainly driven by increase in CTF Life’s CSM release supported by the profitable new business growth and favourable financial market movements YoY • CSM release +17% YoY to HK$665M which was

  23. Slide 23: CTF Life: Structural strength in operating metrics

    Financial Services CTF Life – Structural strength in operating metrics Robust APE Growth Strong VONB Growth • Overall APE +48% YoY to HK$2,288M supported by HK$M HK$M broad-based demand, attractive product offerings and +48% (x%): VONB margin +39% improved distribution execution • VONB +39% YoY to H

  24. Slide 24: CTF Life: Agency transformation and overseas expansion

    Financial Services CTF Life – Driving sustainable growth through agency transformation and overseas business expansion Robust Agency APE Growth Overseas Business APE • Both agency productivity and number of Agency APE (HK$M) agents increase over past 2 years HK$M 1 Agency Productivity (HK$K) YoY: 

  25. Slide 25: CTF Life: Fast-growing and defensive investment portfolio

    Financial Services CTF Life – Fast-growing and defensive investment portfolio Fast-growing Investment Portfolio AUM* (HK$’Bn) Prudent Asset Allocation +9% Bonds (Including 90.8 98.8 Bond Funds) 68% 77.7 Listed Equities (Including Equity Funds) Other Assets & 19% Cash Alternatives 30 Jun 24 30 Jun 25

  26. Slide 26: Scalable growth driven by insurance centric wealth management platform

    Financial Services Scalable growth driven by insurance centric wealth management platform CTF Life well positioned to capture sustained demand, leveraging multi-currency products, competitive returns, broad medical coverage and continuous product innovation CMV and cross border wealth management dem

  27. Slide 27: Logistics: Diversified investments across Greater China

    Logistics Diversified logistics investments across Greater China 8 logistics properties: - Chengdu, Wuhan, China United International Rail Containers Dongguan (100% Co. Ltd. (“CUIRC”) (30% interest) interest) • JV with China State Railway Group, Urumqi Jilin - Suzhou (90% interest) Inner PSA, CIMC &

  28. Slide 28: ATL: Initiatives to strengthen performance

    Logistics ATL – Market volatility tempered occupancy; initiatives implemented to strengthen performance Segment AOP ➢ Logistics Asset & Management • ATL Logistics Centre - total gross leasable area c.5.9M sqft HK$M YoY Occupancy rate Average rental change  14% 75.2% (As at 30 Jun 2025: 80.7%) +3% Y

  29. Slide 29: Logistics assets portfolio in the Chinese Mainland

    Logistics Logistics assets portfolio in the Chinese Mainland with desirable geographical positioning ➢ Logistics Asset & Management (total gross leasable area in Chinese Mainland c.6.9M sqft) Average occupancy rate across 7 logistics properties in Chengdu, Wuhan & Suzhou c.90.9% (As at 30 Jun 2025:

  30. Slide 30: CUIRC delivered robust operational performance

    Logistics CUIRC delivered robust operational performance in FY2026-1H ➢ CUIRC - 13 large-scale rail container terminals in the Mainland AOP Strong demand for multimodal transportation services (e.g. the China-Europe Railway Express) +19% YoY Throughput Increased demand for ancillary logistics servic

  31. Slide 31: CTFS Construction Group: Backlog position

    Construction CTFS Construction Group – Backlog position underpins earnings visibility Segment AOP • Construction segment’s AOP dropped due to lower gross margins recognized from projects in the Current Period and the absence of prior-period expected credit loss provisions reversals, leading to HK$M

  32. Slide 32: CTFS Construction Group: Proven construction expertise

    Construction CTFS Construction Group – Delivering long-term value through proven construction expertise CTFS Construction Group operates solely within Hong Kong, supported by the following long-established subsidiaries: ► Founded in 1961, Hip Hing Group provides comprehensive project management serv

  33. Slide 33: GHK: consistent progress

    Facilities Management GHK – consistent progress driven by premier healthcare service & enhanced reputation Segment AOP GHK(30% interest) (CTFS - 40% interest & IHH Healthcare Berhad - 60% interest) Incl. Free Duty HK$M (divested in Dec 2024) • Contributed positively to the Group’s profitability, mak

  34. Slide 34: GHK & Parkway Medical services

    Facilities Management GHK & Parkway Medical – provide a multi-specialty hospital, clinics and laboratory services Gleneagles Pro-HEART Gleneagles Medical Clinic Gleneagles Primo Cardiac Centre Central, Hong Kong Surgical Centre Gleneagles Healthcare • consultation services and non- • general and spe

  35. Slide 35: Manage & operate iconic facilities in HK

    Facilities Management Manage & operate iconic facilities in HK Hong Kong Convention and Exhibition Centre (Management) Limited (100% interest) • AOP declined due to increased depreciation and higher capital expenditure, subdued F&B revenue as a result of fewer events • No. of events to 378 (FY25-1H:

  36. Slide 36: Agenda

    Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)

  37. Slide 37: ESG Updates

    ESG UPDATES OUR PERFORMANCE IN KEY ESG RATING ASSESSMENTS The Hang Seng Corporate S&P Global ESG Score MSCI ESG Rating Sustainability Index Assessment1 • Overall score 82.26 • Maintain the AA+ rating ESG RECOGNITIONS (Left) Hong Kong Sustainability Award 2025 Distinction Award – Large Organization C

  38. Slide 38: ESG Highlights

    ESG HIGHLIGHTS Strengthening Business-Unit ESG Disclosure Investing in Sustainable Industrial Logistics Assets CTF Life Releases Its First Voluntary ESG Disclosure Report Acquired a 100% equity interest in three industrial logistics properties in East China By publishing its first voluntary ESG disc

  39. Slide 39: ESG Highlights: Community Engagement

    ESG HIGHLIGHTS COMMUNITY ENGAGEMENT RECOGNITIONS Hong Kong Volunteer Award 2025 Outstanding Corporate Award Caring Company and Caregiver-friendly Company Presented by the Home and Youth Affairs Bureau Awarded to CTFS and our subsidiaries, CTF Life, Hip Hing Construction and the Agency for Volunteer

  40. Slide 40: Appendices

    CTFS Appendices

  41. Slide 41: 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

  42. Slide 42: CTFS: A Clear Path Forward

    CTFS: A Clear Path Forward Ownership, Governance, and Operational Framework • Ownership Structure: No longer the subsidiary of New World Development; directly owned by Chow Tai Fook Enterprises Limited, with no cross-shareholding Shareholding Structure • Transparency: Engages in minimal connected tr

  43. Slide 43: FY26-1H Adjusted EBITDA Analysis

    FY26-1H Adjusted EBITDA Analysis Adjusted EBITDA includes dividend from JVs/assocs is the operating cash flow proxy HK$’M 4,000 576 3,591 3,500 105 36 3,000 959 70 Others Dividends Loss on FV Impairment loss on received 2,500 of investment intangible from properties associated concession 2,000 1,845

  44. Slide 44: FY26-1H Financial Summary

    FY26-1H Financial Summary Profit attributable to shareholders increased by 15% YoY HK$’M 3,000 2,500 2,284 (38) (105) 8 (495) Loss on fair 2,000 value of Impairment Share of investment non-operating (226) properties income of JVs, 1,500 net Net finance (94) 1,334 costs Corporate office’s Profit 1,00

  45. Slide 45: FY26-1H Assets and liabilities by segment

    FY26-1H Assets and liabilities by segment Assets by segment (HK$M) Liabilities by segment (HK$M) Construction Facilities Strategic 10,745 Management Facilities Investments Strategic Management 75 Logistics 2,689 Corporate Investments 838 13,545 5,984 34,730 Construction Corporate 8,773 Roads 9,437 4

  46. Slide 46: Continual Strategic Portfolio Optimization

    Continual Strategic Portfolio Optimization to Create Long-Term Value Build a stronger foundation for scalable growth *pending completion & subject to regulatory approvals FY18 to FY24 FY25 to FY26 Suiyuenan Expy Chow Tai Fook Life Insurance Co Ltd Hsin Chong Aster Building Blackhorn Group Ltd* Key A

  47. Slide 47: CTF Life: Excellence in Insurance, Powered by Innovation

    Appendix CTF Life – Excellence in Insurance, Powered by Innovation MyWealth FamCare 198 Savings Insurance Plan 2 Critical Illness Protector Builds wealth with protection and legacy planning Multi-stage illness protection for the whole family • 2/5/10-year premium terms, 8 currency options • Coverage

  48. Slide 48: Board of Directors

    Appendix Board of Directors Dr Cheng Kar Shun, Henry GBM, GBS ED Chairman Mr Cheng Chi Ming, Brian Mr Ho Gilbert Chi Hang Mr Lam Jim Mr Cheng Chi Leong, Christopher Group Co-Chief Executive Officer Group Co-Chief Executive Officer Group Chief Operating and Financial Officer NED Mr William Junior Gui

  49. Slide 49: 5-year share performance of CTFS

    5-year share performance of CTFS (Jan 2021 to Feb 2026) (HK$) Restoration of public float to above 25% 12.00 Disposal of Change of SUEZ NWS Company Issuance of US$400M 6.375% Senior Notes Name Issuance of Disposal of Issuance of HK$2.2Bn 0.75% Due 2028 11.5% Wai Kee RMB2Bn 3.9% Exchangeable Acquisit

  50. Slide 50: 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

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