Operating Results hit record highs
The company expands and strengthens business to
achieve stable growth for the long term
1. Annual operating results hit record highs, reflecting continuing momentum of steady growth
On March 6, Yuexiu Transport Infrastructure Limited held press conference to announce its annual results and payment of the final dividend for 2019. For the year ended 31 December 2019, the Company’s revenue and return on equity (ROE) hit record highs. The revenue increased by 6.2% to RMB3.02 billion, exceeding RMB3 billion for the first time. Profit attributable to shareholders was RMB1.14 billion. Basic earnings per share increased by 7.9% to RMB0.6799. All these indicate the continuing momentum of steady growth. The board of directors has proposed the payment of final dividend of HK$0.21 per share, which together with the paid interim dividend, will bring the total dividends for the reporting year to HK$0.39 per share. The annual dividend payout ratio will be 51.5%.
Financial Highlights:
2. Stepping up efforts to formulate and implement business plans in central China to make great strides in development
During the reporting year, the Company acquired three quality expressways in Hubei province, namely Hancai Expressway, Han’e Expressway and Daguangnan Expressway, achieving a remarkable progress of business expansion. As a result, the number of projects which the Company has controlling interests increased to 10, total asset amounted to 36.8 billion, the toll mileage of controlling projects increased by approximately 200 kilometers to 535 km and the weighted average remaining concession period was extended to 19.1 years, all of which will strengthen the sustainable development of the Company
While actively acquiring quality projects, the Company will, by fully playing out its own advantages, boost the traffic volumes of projects and maximize their operating results through a number of measures. Based on that, the Company will continue to utilize its investment grades to optimize debt structures and lower down finance costs, leading to the overall improvement of operational results.
3. Despite challenges ahead, development is to be accelerated by scale expansion and strengthening principal business under a steady momentum
To support the prevention and control of the novel coronavirus pneumonia (Covid-19), the Ministry of Transport announced on 15 February a policy on temporary toll exemption that applies to all toll expressways nationwide with effect from 17 February until the epidemic control work is done. ‘Although the toll waive policy will depress the revenue of the sector and the Company’s operating results in short term, our perspective of the future prospects hasn’t changed. In long term, we are determined to insist our positive views about economic growth and development prospects of toll road sector in China’, stated by Mr. Li Feng, who is the Chariman of Yuexiu Transport Infrastructure.
Chairman Mr. Li Feng pointed out that the Company had already carried out a stress test and had swiftly adopted effective measures to minimize the adverse effect of Covid-19 on its business. Also, the Company has prepared itself well to cope with the current operating environment and various possibilities in the future. Within the transportation infrastructure sector, new investment opportunities also appeared due to the outbreak of the Covid-19. Therefore, the Company will identify quality expressways for mergers and acquisitions and will plan carefully for the move according to its resources and capability.
Regarding the future development of the Company, Mr. Li said that shifting into an asset management company was the key focus of the next step for the Company. In the future, the Company will develop a business model that suits the principal of asset management, under which a balance between long term development and return on equity will be obtained through investing in quality assets and optimizing asset portfolio on a sustainable basis.