CTF Services (0659), previously known as NWS, saw its net profit increase 4 percent to HK$2.16 billion for the year ending in June, thanks to the newly added financial services.
The conglomerate also proposed to issue bonus shares while maintaining the final dividend at 35 HK cents.
Operating profit for the year increased 7 percent to HK$4.47 billion.
CTF Services attributed it to the diversified businesses amid macroeconomic uncertainties. The financial services segment was a key performer, with its operating profit contribution jumping 29 percent to HK$1.24 billion. The contract service margin release from CTF Life Insurance grew 28 percent to HK$1.13 billion.
However, total annualized premiums for the fiscal year decreased 27 percent to HK$3.3 billion, attributed to an exceptionally strong prior-year performance post-pandemic and increased competition in the broker channel. This was partially offset by a significant 48 percent growth in annualized premiums from the agency channel.
The logistics segment's operating profit rose 3 percent to HK$740 million, benefiting from stable performance at the Asia Container Logistics Centre and a substantially higher contribution from China United International Rail Containers, though partly offset by weaker mainland logistics property profitability.
The roads segment reported an 8 percent decrease in operating profit to HK$1.44 billion, mainly due to the expiry of the Guangzhou North Ring Expressway concession in March 2024 and slower-than-expected traffic recovery on some projects. The facilities management segment's operating profit fell 61 percent, primarily due to poor performance of the duty-free shop business, which was sold in December.
Overall, Hong Kong operations contributed 58 percent of the company's operating profit, while the mainland contributed 40 percent. Adjusted earnings before interest, taxes, depreciation and amortization increased 1 percent to HK$7.32 billion.
The company maintained its final dividend at HK$0.35. Including a one-time special dividend of 30 HK cents paid in April, the total annual dividend rose to HK$0.95.
A one-for-ten bonus share issue was also proposed.
Strategically, CTF Services shifted a majority of its debt portfolio to lower-cost yuan borrowing. As of June 30, yuan debt accounted for 62 percent of total debt. The net debt ratio stood at 37 percent, with total available liquidity of HK$29.80 billion.
