Hong Kong-based conglomerate CTF Services Limited (HKEX: 659) delivered a robust fiscal year 2026 (FY2026) performance, with attributable operating profit rising 3% year-over-year to HK$4.591 billion. The company’s financial services segment—led by CTF Life Insurance—overtook roads as the primary profit driver, generating HK$1.475 billion in attributable operating profit, a 19% increase, and accounting for 32% of group-wide earnings, surpassing the roads segment’s 31% contribution. Meanwhile, the company’s net debt fell 20% to HK$11.7 billion, with a net gearing ratio of 28%—down from 37% in the prior year—and a net debt-to-adjusted EBITDA ratio of 1.6x, improving from 2.0x the year before. Total available liquidity stood at HK$31.3 billion, comprising HK$20.8 billion in cash and HK$10.5 billion in undrawn committed facilities, while credit ratings were upgraded to A+ by Japan Credit Rating Agency and AAA by China Lianhe Credit Rating, both with stable outlooks.
CTF Life Insurance delivered strong results, with contractual service margin (CSM) release surging 21% to HK$1.368 billion. Annual premium equivalent (APE) grew 7% to HK$3.540 billion, with new business premiums rising 74% to HK$9.333 billion and value of new business (VONB) expanding 30% to HK$1.308 billion. The company’s VONB margin climbed to 37% from 30% in the prior year, while embedded value increased 12% to HK$28.4 billion. Hong Kong Risk-Based Capital (HKRBC) solvency ratio improved to 285% from 279%, reflecting a 6 percentage-point gain.
In acquisitions, CTF Services bolstered its financial services portfolio by securing a 13.05% stake in digital brokerage uSMART in November 2025 and a 65% interest in asset management firm Blackhorn Group in July 2026. The company also monetized Shoucheng assets via HK$2.218 billion in exchangeable bonds due 2028 and disposed of the Changliu Expressway for RMB 1.8 billion, while investing in AI data centers in Huailai (30MW, 70% interest) and Malaysia (planned >70MW, 40% interest).
The roads segment, which had previously been the group’s top earner, saw attributable operating profit hold steady at HK$1.443 billion, though average daily traffic and toll revenue declined slightly year-over-year. The logistics segment’s profit fell 13% to HK$645 million, with occupancy rates recovering in Hong Kong’s ATL Logistics Centre to 84.5% and Chinese Mainland properties to 86.3%. Construction segment earnings dropped 4% to HK$689 million, with a backlog of HK$35 billion, while facilities management, including Gleneagles Hospital Hong Kong, reported stable but modest growth.
Shareholder returns remained robust, with the company declaring its 23rd consecutive year of dividends, including a final dividend of HK$0.28 per share (up 3% on a comparable basis) after a one-for-ten bonus share issue in December 2025. Total ordinary dividends for FY2026 amounted to HK$0.61 per share, a 6% increase year-over-year, with total payouts rising to HK$2.8 billion. Sustainability efforts were highlighted by an upgraded MSCI ESG rating to AA and a Hang Seng Corporate Sustainability Index AAA rating, alongside a 17% reduction in Scope 1 and 2 GHG emissions and a 12% cut in CTF Life’s investment portfolio carbon footprint.
The company’s financial health remains strong, with total debt at HK$32.4 billion at stable borrowing costs of 4.1%, including HK$20.2 billion in sustainability-linked and green debt financing—representing 45% of its debt portfolio. With a net debt-to-EBITDA ratio of 1.6x and a gearing ratio of 28%, CTF Services continues to demonstrate disciplined capital management and a diversified growth strategy across insurance, logistics, construction, and facilities management.
