SHKP 'confident' of $40b sales target

Business | Stella Zhai 13 Sep 2019

Sun Hung Kai Properties' (0016) deputy managing director Victor Lui Ting said the company is confident about achieving an interim sales target of HK$40 billion for the next financial year, and is expecting to launch new projects in the next nine months.

The firm posted its underlying net profit for the full year ended June 30 - excluding the effect of fair-value changes on investment properties - rose 6.6 percent from a year ago to HK$32.4 billion. Net profit fell 10 percent year-on-year to HK$44.9 billion.

Underlying earnings per share for the year were HK$11.18, and a final dividend of HK$3.70 a share was declared.

Revenues for the year slid 0.4 percent to HK$85.3 billion, with property sales accounting for HK$41.3 billion.

Rental income climbed 6 percent to HK$25 billion, and net rental income rose 6 percent to HK$19.7 billion.

However, since June, the business operating environment in Hong Kong has been significantly deteriorating, mainly due to continuous social incidents.

SHKP's land bank totaled 58 million square feet of gross floor area, adding seven projects with an aggregate GFA of 3.1 million sq ft in attributable terms to the firm's development land bank in Hong Kong.

Lui said the sales of part of their projects were impacted by the ongoing social unrest, but the company will continue selling its projects every month with sufficient land reserves.

"Despite weakening market sentiment, the Hong Kong residential market is likely to be supported by relatively low mortgage rates and continuous end-user demand," said chairman and managing director Raymond Kwok Ping-luen.

Deputy managing director Mike Wong Chik-wing said the company has transformed agricultural land to about 15,000 salable residential units in the past three years.

Kwok also said the company will contribute to addressing the housing problem in Hong Kong through developing more residential units, including the conversion of its agricultural land to residential development projects.

Shares of SHKP slipped 0.76 percent to HK$116.90 yesterday.

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