Transport International Holdings (TRANSPORT INT’L, HK: 00062) reported a sharp earnings contraction for the six months ended 30 June 2026 as escalating global fuel prices eroded margins across its bus franchises.
Revenue and Profitability – Group revenue was broadly flat at HK$4.21 billion (H1 2025: HK$4.23 billion). – Underlying profit attributable to shareholders (ex-fair-value changes) fell 47.96% to HK$148.40 million, translating into underlying EPS of HK$0.28 (H1 2025: HK$0.56). – Reported profit plunged 86.74% to HK$25.20 million, or HK$0.05 per share, after recognising a HK$123.20 million fair-value loss on investment properties (H1 2025 loss: HK$95.10 million).
Cost Pressures – Fuel and oil expenditure jumped 36.54% year on year to HK$567.90 million, reflecting the continued spike in international oil prices linked to the Middle East conflict. – Staff costs rose 2.45% to HK$2.32 billion, while depreciation eased 1.08% to HK$585.70 million. – Toll-related charges more than halved to HK$78.60 million, supported by government waivers.
Segment Performance Franchised Bus Operations • Segment profit dropped to HK$96.60 million (H1 2025: HK$201.90 million). • Kowloon Motor Bus (KMB) posted a net profit of HK$79.40 million, down 44.99%, with fuel and wage inflation outweighing modest government subsidies. • Long Win Bus (LWB) profit slipped 31.0% to HK$17.40 million despite a 6.5% rise in fare revenue.
Property Holdings & Development • Ex-fair-value changes, the unit earned HK$7.90 million (H1 2025: HK$25.80 million). • Higher finance costs weighed on results; fair-value losses on investment properties totalled HK$123.20 million.
Non-Franchised Transport • Net profit marginally decreased to HK$11.10 million (H1 2025: HK$11.60 million) as cost controls tempered fuel-driven expense growth.
Balance Sheet & Liquidity – Net borrowings narrowed to HK$1.32 billion from HK$1.59 billion at December 2025, aided by a cash balance of HK$2.67 billion. – Total bank loans increased to HK$3.99 billion (31 Dec 2025: HK$3.37 billion), all unsecured and Hong Kong-dollar denominated. – Average borrowing cost fell to 2.9% (H1 2025: 3.1%). Undrawn facilities stood at HK$4.01 billion. – Capital additions reached HK$156.40 million, mainly for fleet renewal; capital commitments totalled HK$113.20 million.
Dividend Decision Given fuel price volatility, rising costs and uncertain outlook, the Board suspended the interim dividend (H1 2025: HK$0.30 per share).
Management Outlook Management highlighted renewed spikes in gasoil prices since July 2026 and called on the HKSAR Government to extend and broaden fuel-subsidy schemes. Expansion opportunities include six new franchised routes in the Northern Metropolis and growing cross-boundary and tourism-related services. The Group continues to scale up its zero-emission electric bus fleet and expects stable rental contributions from The Millennity and The ANGLE commercial project in Kwun Tong.
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