Investment Rating - Maintains an "Overweight" rating [2][4] Core Views - The company demonstrates stable operations with steady growth in water resource operations and sufficient cash flow, maintaining a high dividend payout ratio of 65% [3][4] - The company's water resource and power generation businesses show stable growth, offsetting the decline in property investment and development profits and the 2.2% depreciation of RMB against HKD [4] - The property investment and development business has shown improvement, with significant revenue growth in certain segments [4] Financial Performance - 2024H1 revenue reached HKD 12.291 billion, an 8% year-on-year increase, while net profit attributable to shareholders decreased by 5% to HKD 2.411 billion [4] - Adjusted 2024-2025 net profit forecasts to HKD 3.69 billion (previously HKD 4.55 billion) and HKD 4.14 billion (previously HKD 4.91 billion), respectively, and introduced a 2026 forecast of HKD 4.45 billion [4] - EPS for 2024-2026 is projected at HKD 0.56, HKD 0.63, and HKD 0.68, respectively [4] Business Segments Water Resource Operations - Water supply revenue to Hong Kong increased by 2% to HKD 2.802 billion, while revenue from Shenzhen and Dongguan decreased by 1% to HKD 683 million [4] - Pre-tax profit from the East River-Shenzhen Water Supply Project (excluding exchange differences and net financial expenses) grew by 5% to HKD 2.325 billion [4] - Current water supply and sewage treatment capacities under construction are 1.287 million tons/day and 50,000 tons/day, respectively [4] Property Investment and Development - Revenue from Yuehai Tianhe City property investment increased by 11% to HKD 793 million, driven by higher average rental rates and occupancy levels, as well as contributions from the newly opened Yuehai Tiandi project [4] - Yuehai Property revenue surged by 188% to HKD 2.804 billion, with sales revenue from properties reaching HKD 2.779 billion [4] - Pre-tax loss for Yuehai Property was HKD 283 million, but adjusted for fair value changes, impairment of properties under development, and net financial expenses, the pre-tax loss was HKD 105 million [4] - As of mid-2024, Yuehai Property held completed properties for sale worth HKD 8.664 billion and properties under development worth HKD 21.949 billion, totaling HKD 30.613 billion [4] Dividend Policy - The company maintains a high dividend payout ratio of 65%, with an interim dividend of HKD 23.97 cents per share [4] - Operating cash inflow for 2024H1 was HKD 4.876 billion, with capital expenditures of HKD 445 million [4] Market Data - Current stock price: HKD 4.68 [5] - 52-week price range: HKD 3.35 - HKD 6.21 [5] - Current market capitalization: HKD 30.597 billion [5]
粤海投资：2024年中报点评：维持高分红，现金流充足