Sino Land result receives 49pc boost
Improved property income and modest growth in rentals boosted Sino Land Co's net profit for the six months to December by 49.3 per cent, from $512.12 million to $764.69 million.
The company said operating profit rose 46.66 per cent to $876.12 million from $597.28 million.
Earnings per share rose 34.62 per cent to 28 cents from 20.8 cents. Directors declared an interim dividend of 10 cents, an increase of 25 per cent.
At a government land auction on Tuesday, Sino Land made an aggressive $11.82 billion purchase of a large residential site in Siu Sai Wan in conjunction with the family of its chairman, Robert Ng Chee Siong.
Its parent company, Tsim Sha Tsui Properties, also posted a 31.7 per cent increase in first-half net profits to $378.49 million, thanks to the improved contribution from Sino Land.
TST Properties said profit before tax rose 33.5 per cent to $782.51 million from $586.28 million.
Earnings per share rose 30.4 per cent to 30 cents from 23 cents. Directors declared an interim dividend of 10 cents against eight cents previously.
Mr Ng, who is also the chairman of TST Properties, said during the period Sino received satisfactory responses from the marketing of a number of residential projects, which boosted the company's earnings.
These include phase one of Dynasty View in Tai Po, the remaining stock of Parc Royale in Sha Tin and phase five of Parc Oasis in Yau Yat Chuen.
Analysts estimated property sales arising from these four projects and a number of smaller developments accounted for 65 per cent of the company's pre-tax earnings.
The balance came mainly from recurrent income from investment properties.
Mr Ng said: 'Despite a relatively soft rental market in the interim period, Sino Land was able to maintain modest growth in gross rental income to about $558 million.' He said the company's rental portfolio during the period had increased to 5.8 million sq ft.
Recurrent income in the coming financial year would be further boosted by other major properties such as Mayfair at May Road and the Hong Kong Pacific Centre, Mr Ng said.
Sino owned a land bank of more than 15 million sq ft which was sufficient to satisfy its development needs over the next five years, it said.
During the period, the company bought five sites and one luxury residential building.
Lehman Brothers estimated Sino Land would reap $1.46 billion in its full-year profit this financial year compared with the $1.15 billion it recorded previously.
DBS Securities property analyst Winnie Chiu said the outlook for the property company over the next two years was positive.
