On August 15, 2024, the company announced its half-year results for 2024. In the first half of the year, it achieved operating income of HK$4.722 billion, +0.1% year over year, and realized net profit of HK$0.551 billion, or +26.1% year over year. The semi-annual dividend was HK7.0 cents per share, an increase of 27.3% over the previous year.

Overall turnover was stable, and profit margin growth led to an increase in performance: the company's small increase in revenue in 1H24 was mainly driven by the main curtain wall business. Hong Kong and Macau curtain wall revenue was HK$3.057 billion, +24.0% year-on-year, while the North American façade and non-core business contracted further according to the established strategy, and revenue declined. The net profit growth rate was much higher than the revenue growth rate. The company's net profit margin increased 2.4 pct from 9.3% of 1H23 to 11.7% of 1H24, mainly driven by the growth of the Hong Kong and Macau curtain wall with high profit margins.

The core business is developing steadily, and the overseas curtain wall is expanding again: the company signed a total of HK$6.044 billion in 1H24, up +23.9% from 2H23, down 8.7% from 1H23 (HK$6.623 billion), mainly due to 1H23's concentrated bid for a number of large government hospital projects (HK$2.486 billion), but the launch of such projects was not continuous, resulting in a high base. The Hong Kong and Macau curtain wall has a strong position as a leader. It has won bids for high-quality projects such as the Hong Kong West Kowloon High Speed Rail superstructure, the Central New Waterfront, and the Macau Rehabilitation Hospital; the mainland's façade works as a high-energy city and won bids for projects such as the Shanghai Sina headquarters; the optimized layout of overseas facades has won the bid for major complex curtain wall projects in the Central Business District of Singapore, and continues to focus on high-quality projects in the Middle East, Southeast Asia and other regions.

BIPV compliance research and development is being actively promoted: the company's 1H24 BIPV application has been further implemented to fully guarantee the implementation of the Shenzhen Zero-Energy Construction Pilot — the Shenzhen Metrology Institute project. The design work has basically been completed. The various exterior effects of BIPV products have been recognized by the owners; Light A products have been successfully implemented in Sun Hung Kai West Kowloon high-end residential project. Emerging businesses such as BIPV are expected to become new growth points for the company's “15th Five-Year Plan” (2026-2030).

The company's “14th Five-Year Plan” performance has been steadily implemented. The “15th Five-Year Plan” vigorously promotes the strategic layout of emerging businesses such as BIPV and expands the blue ocean market. We keep the company's profit forecast unchanged. We expect net profit to be HK$0.787/1.036/1.316 billion for 2024/2025/2026, with year-on-year growth rates of 35.7%, 31.6% and 27.0%, respectively. The current price of the company's stock is 6.0/4.5/3.6 times the PE valuation, maintaining a “buy” rating.

Projects in Hong Kong and Macau are expanding slowly; new businesses are not developing smoothly; green construction policies have changed.