【Kingboard Results】Kingboard Group Earned 1.7 Times More Last Year, Final Dividend Plus Special Dividend of 1.51, Zhang Guorong: Future Investment of 10 Billion Won't Harm Future Dividends (Revised Edition 2)

Cheetah Group Announces Results, Cheetah Group (00148) Reported a 1.7-fold increase in profit for the full year, reaching HKD 4.402 billion; revenue for the period was HKD 45.375 billion, up 5.3% year-on-year. Basic earnings per share were HKD 3.971. A final dividend of HKD 1.11 per share is recommended, compared to HKD 0.54 last year; a special dividend of HKD 0.4 (versus HKD 0.46 last year) is also paid, making a total of HKD 1.51 per share including the special dividend.

To meet AI demand, Cheetah plans to invest HKD 12.3 billion over the next two years. When asked if large investments would affect dividends, Chairman Cheung Kwok-wing said that due to significant quarterly profit increases, he is confident in maintaining dividend levels. Executive Director Cheung Ka-shing added that this year, Cheetah’s laminated boards (01888) plans to invest HKD 2.8 billion, Cheetah’s chemical industry business HKD 1.2 billion, and printed circuit boards HKD 2 billion; the remaining investments will be made next year.

Ability to Pass Raw Material Costs to Customers

Amid recent political instability, prices of raw materials like copper have surged. Cheung Kwok-wing stated that as an industry leader, Cheetah has the ability to pass costs to customers, “raw material prices follow market trends, and goods rotate,” but many private sector peers are affected by the sharp rise in costs.

Cheetah Laminated Boards Chairman Cheung Kwok-wah added that the company needs to purchase about HKD 1 billion worth of copper monthly for production. The copper mainly comes from mines in South America and is unaffected by Middle Eastern tensions. He also said that they started increasing reserves six months ago and currently have sufficient stock, confident in handling current challenges.

Cheetah reported that last year, the electronics market was booming, with rapid AI development and strong demand for emerging electronic products related to AI, boosting profits in its copper-clad laminate division compared to the previous year. The investment business division also saw profit growth year-on-year, benefiting from the vertically integrated industry chain and diversified business portfolio advantages.

Cheetah Laminated Boards announced that for the year ending December last year, net profit attributable to shareholders was HKD 2.442 billion, up 84.16% year-on-year; revenue was HKD 20.4 billion, up 10%. Earnings per share were HKD 0.782. Total dividends paid were HKD 0.53, including HKD 0.25 as the final dividend and HKD 0.28 as a special dividend, compared to HKD 0.5 last year.

Cheung Kwok-wing of Cheetah: Yang Guoqiang Proactively Contacted

Additionally, Cheetah previously applied to the court for liquidation of Country Garden (02007) to recover HKD 1.6 billion in unpaid loans and interest. After reaching a consensus, the court withdrew the liquidation petition last month. Cheung Kwok-wing revealed that two or three months before the withdrawal, Country Garden founder Yang Guoqiang proactively contacted them by phone. He also said the terms were similar to those of other creditors and promised to continue paying interest, so Cheetah agreed to withdraw the liquidation application.

Country Garden’s offshore debt restructuring plan of USD 14.1 billion has been approved by the court. The plan includes offering creditors cash, convertible bonds, and new notes with a maximum maturity of 11.5 years, reducing debt by up to USD 11.6 billion.

However, Cheetah has already provisioned HKD 900 million for loans to Country Garden in 2023, and in 2024, provisions for loans to Country Garden and Fuli Properties will total over HKD 1.4 billion. When asked if these provisions might be reversed in the future, Cheung Ka-shing responded, “Once provisions are made, that’s it. Focus on our own business. If we recover funds later, we will reverse provisions at that time.”

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