New World Development

Property developers report large profit rises

PUBLISHED : Wednesday, 15 March, 2006, 12:00am
UPDATED : Wednesday, 15 March, 2006, 12:00am

Updated at 6.54pm:
Two of Hong Kong's major property developers, New World Development and Wharf Holdings, on Wednesday reported impressive profit gains during 2005.

New World Development's interim profit rose to $2.1 billion in the sixth months ending December 31, 2005, up 101 per cent from $1 billion during the previous corresponding period in 2004.

Turnover rose to $13.3 billion in 2005 - up from $10.2 billion during previous corresponding period.

Wharf Holdings' net profit rose 10 per cent to $13.9 billion for the year ending December 31, 2005 compared with $12.7 billion in the previous year.

Turnover increased to $12.5 billion in 2005 compared with $11.9 billion.

New World Development announced an interim dividend of 13 cents, compared with 10 cents in the preceding year.

Wharf Holdings declared a final dividend of 44c, as opposed to 36c in 2004.

New World Development has operations in property, infrastructure and telecommunications in Hong Kong.

Wharf holdings owns ports and a number of properties in Tsim Sha Tsui. It also runs internet services and communications.

The Hong Kong property market is currently enjoying steady growth, after suffering significant falls after the Asian economic crisis in 1997-98.

On Wednesday afternoon, property shares on the Hong Kong share market reported their largest one-day percentage rise in almost three weeks. The Hang Seng property sub-index climbed 2.06 per cent to reach 19,263.54.