SHKP's second-half earnings slide 11.9pc

Business | Victor Zhong 26 Feb 2021

Sun Hung Kai Properties (0016) earned 11.93 percent less year-on-year for the second half of 2020, with a net profit of nearly HK$13.58 billion.

It declared an interim dividend of HK1.25 per share, the same as last year.

The developer's operating profit jumped 30.16 percent to HK$21.02 billion year-on-year.

Underlying profit attributable to the company's shareholders rose nearly 30.25 percent to HK$17.48 billion, thanks to most of the financial year's development projects for sale in Hong Kong being completed in the first half of the year, said the company.

Profit generated from property sales reached HK$12.37 billion in the second half of 2020, compared to HK$6.85 billion in the previous year.

However, gross rental income, including contributions from joint ventures and associates, dropped 3 percent year-on-year to HK$12.36 billion, and net rental income decreased 2 percent year-on-year to nearly HK$9.50 million during the six-month period.

The group said that the drop in rental income mainly comes from the decrease in its Hong Kong rental portfolio.

It added a residential site in So Kwun Wat, Tuen Mun, through the conversion of agricultural land.

The site, cover 614,000 square feet, is earmarked for the development of a mass residential project which offers a wide range of flat types.

The group has a 75.2 percent stake in the development.

In addition, the developer acquired an industrial site in Tuen Mun via a private deal during the period, in which it owns a 69.9 percent interest.

It plans to convert the site into office and retail uses with a gross floor area of about 772,000 square feet.

Looking ahead, Raymond Kwok Ping-luen, chairman and managing director of SHKP, said in an announcement: "Over the next 10 months, the group plans to launch a number of projects for sale in Hong Kong, though their sale schedules and performance may be uncertain and contingent upon the epidemic situation."

In other news, Kwok said that he supported the statement by the director of the Hong Kong and Macau Affairs Office of the State Council, Xia Baolong, that "Patriots governing Hong Kong" is the core meaning of the "One Country, Two Systems" policy.

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