Profit before tax for the period was 7% below CGSI’s estimates due to fair value changes on financial assets and foreign exchange gains, more than offset by weaker interest income which dropped 30% y-o-y as well as heftier-than-expected impairment allowances on continued headwinds in China’s real estate market.
CGS International (CGSI) analysts Andrea Choong and Lim Siew Khee have kept “add” on Yangzijiang Financial Holding (SGX:YF8
) (YFH) with a lower target price of 42 cents from 45 cents previously although its 1HFY2024 ended June results beat expectations.
For its 1HFY2024, YFH posted net profit of $112 million, down 31% y-o-y. This was 5% above CGSI’s $107 million estimate, forming 53% of its FY2024 forecast. The beat was primarily due to lower taxes at 50% of CGSI’s estimate.
