CTF Services (0659) saw its net profit increase 11 percent to HK$2.4 billion for the year ended June 30, driven by strong financial services performance.
The conglomerate declared a final dividend of 33 HK cents, and proposed a one-for-ten bonus issue of shares.
Operating profit for the year rose 3 percent to HK$4.59 billion, among which the financial services segment recorded a growth of 19 percent to HK$1.47 billion, and became the largest contributor for the first time, underpinned by solid growth in the insurance business.
Chow Tai Fook Life's contractual service margin releases grew 21 percent to HK$1.3 billion. Its value of new business jumped 30 percent to HK$1.3 billion, lifting the margin from 30 percent to 37 percent.
Roads segment profit was flat at HK$1.4 billion. But the logistics segment fell 13 percent to HK$645 million due to the impact of deferred tax provision as well as reflecting challenging market conditions despite signs of stabilization.
Geographically, Hong Kong accounted for 63 percent of the company’s operating profit, up from 58 percent a year earlier, while the mainland contributed 33 percent.
The net debt dropped 20 percent to HK$11.65 billion, stemming mainly from bond issuance proceeds and convertible bond conversion, on top of operating cash inflow.
Looking ahead, the company will deepen its presence in financial services and logistics segments. Meanwhile, its re-inclusion in the Hang Seng Composite Index and eligibility for the Southbound Stock Connect have further enhanced its capital markets profile, the company said.
Frank Feng
