Henderson Land net dives 52pc to $6.7b

Business | Stella Zhai 22 Aug 2019

Henderson Land Development (0012) says its underlying net profit for the first half this year plunged by 52 percent to HK$6.7 billion, declaring an interim dividend of 50 HK cents.

The decrease in profit was mainly due to an income of HK$8.4 billion last year from the disposal of its development projects in Tuen Mun and North Point, as well as unrecognized sales revenue which will be completed and delivered to buyers in the second half-year, and reflected in the final results, said the company.

The pre-tax profit from property sales was HK$1.1 billion, decreasing by 72 percent period-on-period, mainly due to the absence of profit contribution of HK$2.78 billion from the disposal of the residential development in Tuen Mun last year.

Pre-tax net rental income grew 1 percent year-on-year to HK$3.58 billion, while pre-tax underlying profit from the disposal of investment properties fell 78 percent year-on-year to HK$1.37 billion.

Henderson signed with an independent third party in July to sell land lots in the New Territories, which cover a site area of about 2.42 million square feet, for HK$4.7 billion, said the company. It expects to complete the transaction by January.

Henderson said Hong Kong's property market remained resilient during the past six months, with solid housing demand from local end-users as well as a prevailing low mortgage interest rate. The Sino-US trade disputes and a tense social atmosphere over the past two months has added uncertainties to the property market.

A total of 595 home units under three of Henderson's projects are available for sale in the second half, including 489 units at 38 Fuk Chak Street in Tai Kok Tsui, 90 at 2C Robinson Road in Mid-Levels and 16 flats at Tong Yan San Tsuen in Yuen Long.

Henderson Investment (0097) reported a net profit of HK$21 million for the first six months this year, dropping 56.25 percent compared with the same half of last year, with an interim dividend of 0.7 HK cents declared.

Revenue for the company grew by 76.72 percent year-on-year to HK$926 million. Its Citistore recorded a 6 percent decrease in total sales, amid weak consumer sentiment dampened by the Sino-US trade dispute and social unrest in Hong Kong.

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