Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.07, indicating a potential upside of 47.4% from the current price of HKD 2.08 [4][9]. Core Insights - The company's 1H24 net profit increased by 26.1% year-on-year to HKD 550 million, aligning with expectations. Revenue rose by 0.1% to HKD 4.72 billion, with significant growth in the Hong Kong and Macau curtain wall segment, which saw a 24.0% increase to HKD 3.06 billion, accounting for 64.7% of total revenue [3][4]. - The company has successfully entered the Singapore market, winning a contract for the Central Mall project, which may allow it to replicate its success in Hong Kong and Macau [4]. - The company is actively pursuing BIPV (Building-Integrated Photovoltaics) projects, aligning with national policies aimed at promoting energy efficiency and carbon reduction in the construction sector [4]. Financial Summary - For FY24, the company forecasts revenue of HKD 10.06 billion, a 16.1% increase from FY23, and net profit of HKD 768 million, reflecting a 32.4% growth [7]. - The company’s earnings per share (EPS) is projected to rise from HKD 0.26 in FY23 to HKD 0.34 in FY24, with a corresponding price-to-earnings (P/E) ratio decreasing from 8.1 to 6.1 [7]. - The dividend per share is expected to increase from HKD 0.09 in FY23 to HKD 0.12 in FY24, resulting in a dividend yield of 5.6% [7]. Contract and Project Insights - The company’s new contract value for 1H24 decreased by 8.7% to HKD 6.04 billion, primarily due to a significant drop in contracts from the Hong Kong and Macau regions [3][4]. - The backlog of uncompleted contracts as of June 30, 2024, grew by 12.8% year-on-year to HKD 17.28 billion, ensuring revenue stability for the coming years [3][4].
中国建筑兴业：FY24中期业绩符合预期，港澳海外支持未来增长