CIFI dives 10pc despite bonus shares dividend

Shares of CIFI Holdings (0884) plunged more than 10 percent after the Chinese developer recorded a 5.2 percent drop in annual net profit to 7.61 billion yuan (HK$9.35 billion).

However, it proposed a final dividend of 5.7 fen as well as four bonus shares for every 100 shares held.

Chairman Lin Zhong said the company's share price is highly undervalued and bonus shares will give long-term shareholders a better return.

CIFI's contracted sales rose by 7.1 percent year-on-year to 247.3 billion yuan last year while the recognized revenue jumped 50.2 percent to 107.8 billion yuan.

Henderson Land Development's (0012) founder Lee Shau-kee reportedly purchased 240 million CIFI shares for more than HK$400 million back in 2013.

Meanwhile, another Chinese developer, Shui On Land (0272), swung to a net profit of 1.64 billion yuan last year as compared with a loss of 740 million yuan in 2020.

Revenue soared 282 percent yearly to 17.56 billion yuan, mainly due to property sales with 8.4 times growth to 13.64 billion yuan.

The company said it will use up to $500 million of funds to repurchase shares with its available cash reserves and free cash flow.

Chairman Vincent Lo Hong-sui said Shui-On plans to invest in land or new business in second-tier cities in the Greater Bay Area.

Among other results, Soho China (0410) reported a loss of 131 million yuan last year, compared to a profit of 530 million yuan last year.

Rental income increased 13 percent to 1.74 billion yuan while no revenue came from the sale of property units.

And Poly Property (0119) recorded a 32 percent rise in net profit to HK$2.48 billion last year as revenue rose 16.7 percent to 36.51 billion yuan. A final dividend of 13.5 HK cents per share was proposed.