Transport International Holdings Limited (TRANSPORT INT'L, 00062.HK) reported a sharp rebound in earnings for the financial year ended 31 December 2025, driven chiefly by a turnaround in its franchised bus operations under The Kowloon Motor Bus Company (KMB).
Financial Performance • Revenue rose 2.77% year on year to HK$8.44 billion, supported by a 3.0% increase in KMB fare revenue following a fare adjustment in January 2025. • Underlying profit (excluding fair-value changes of investment properties) more than doubled to HK$539.80 million, translating into underlying EPS of HK$1.04 (FY24: HK$0.53). • Reported profit after tax reached HK$398.02 million, up 112.5% from HK$187.28 million a year earlier, notwithstanding a HK$141.83 million fair-value loss on investment properties (FY24 loss: HK$78.20 million). • Operating margin improved to 8.1% from 5.0%, with profit from operations climbing 67.0% to HK$687.58 million.
Cost Dynamics • Staff costs increased 3.7% to HK$4.60 billion, now 58% of total operating expenses. • Fuel and oil expenditure fell 10.5% to HK$864.37 million, while toll charges declined 56.6% to HK$91.50 million, reflecting lower fuel prices and government toll-waiver policies. • Finance costs decreased 37.7% to HK$61.32 million due to reduced borrowings and lower average interest rates (2.95% vs 4.92%).
Segment Highlights Franchised Bus Operations – KMB posted profit after tax of HK$360.70 million, up 184.6% from HK$126.80 million, as fare increases and lower fuel/toll expenses offset a 1.8% ridership dip to 923 million trips. – Long Win Bus (LWB) earned HK$46.40 million, 11.3% higher year on year, aided by 2.4% revenue growth and cost discipline.
Non-Franchised Transport – Profit after tax improved to HK$29.70 million (FY24: HK$20.60 million) on a 4.1% revenue lift at Sun Bus and stronger cross-boundary volumes at NHKB.
Property Holdings & Development – Underlying profit fell to HK$42.50 million (FY24: HK$60.10 million); portfolio revaluation losses widened to HK$141.83 million. – The Millennity and Scramble Hill in Kwun Tong transitioned from “under development” to “completed investment property” status during the year.
Balance Sheet & Liquidity • Net borrowings dropped 30.3% to HK$1.59 billion, cutting the gearing ratio to 9.3% (FY24: 13.7%). • Cash and bank balances stood at HK$1.52 billion, while undrawn banking facilities increased to HK$5.20 billion. • Total assets were HK$23.46 billion; net assets edged up 2.8% to HK$17.17 billion.
Capital Expenditure • Capex was trimmed to HK$531.20 million (FY24: HK$937.60 million), primarily for fleet renewal and completion of the Kwun Tong commercial project.
Dividend Policy The Board declared a final dividend of HK$0.50 per share, unchanged year on year. Including the first-ever interim dividend of HK$0.30, total FY25 payout rises to HK$0.80 per share, equating to HK$425.12 million and a payout ratio of 78.8% against reported earnings.
Outlook Management highlighted volatile fuel prices, evolving travel patterns and ongoing rail competition as key operational variables, while reaffirming investment in green mobility, tourism-oriented services and cross-boundary routes to sustain growth momentum.
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