China Merchants Securities released a research report stating that the 2024 and 2025 fiscal year revenue is expected to increase 10% and 11% year on year, and non-IFRS net profit is expected to increase by 14% and 16% year on year. Profit margins are expected to increase further. The non-IFRS net profit margin for fiscal year 2024 reached 27%, up 1 percentage point year on year, and the target price rose to HK$393.
According to the report, the company's revenue increased 7% year on year, and gross margin increased 7 percentage points to 50% year on year. Thanks to the trend of the revenue structure towards high-profit margin business and cost control, non-IFRS operations and net profit increased 35% and 44% year over year, higher than expected by 5% and 2%. The company announced a cash dividend of 3.4 yuan per share, with a total amount of 32 billion yuan, an increase of 42% over the previous year. Furthermore, the 2024 repurchase plan will increase to 100 billion yuan, double that of the 49 billion yuan in 2023. The bank expects a corresponding total shareholder return of 4.85%.