Sino Land core profit falls 22pc

PUBLISHED : Friday, 26 February, 2010, 12:00am
UPDATED : Friday, 26 February, 2010, 12:00am

A fall in property sales meant Sino Land's underlying profit fell 22 per cent for the six months to December.

The city's sixth-largest developer by market value said underlying profit, excluding revaluation gains on investment properties, amounted to HK$2.03 billion, down from with HK$2.6 billion a year ago.

If the gain from property revaluations are included, net profit rose 64.17 per cent to HK$3.3 billion.

Turnover fell 29 per cent to HK$4.41 billion from HK$6.21 billion a year earlier. Interim dividend was unchanged at 10 HK cents.

Sino Land's property revenue fell 37.26 per cent to HK$3.03 billion.

The main contributors were sales of Lake Silver in Ma On Shan and Park Place in Xiamen, Fujian province.

Trevor Cheung, an analyst at BNP Paribas, said the decline in interim profit was expected. He predicts Sino's full-year core earnings would amount to HK$3.4 billion.

'Sino will ride the property boom by offering upcoming new projects at higher prices,' he said.

The developer aims to complete three projects - Sino International Plaza in Fuzhou, The Balmoral in Tai Po and The Fullerton Bay Hotel and Customs House in Singapore - with total gross floor area of more than 700,000 square feet in the current financial year, which ends on June 30.

The group's gross rental income, including the attributable share of its associates, rose 5.2 per cent to HK$1.17 billion.

Rental contributions from new shopping centres such as Citywalk Phase two in Tsuen Wan Town Centre, the retail spaces in The Palazzo in Sha Tin, Exchange Tower in Kowloon Bay and The Hennessy in Wan Chai, will also boost revenue, it said.

Chairman Robert Ng Chee Siong said the increasing presence of Chinese enterprises in Hong Kong and the rising number of mainland entrepreneurs and professionals setting up a base in Hong Kong had lifted demand for residential property.

'With an improvement in the global economic situation, the group continues to be prudently positioned to seek opportunities,' Ng said.

Meanwhile, Tsim Sha Tsui Properties said its net profit jumped 167.5 per cent to HK$1.8 billion for the six months to December last year, and the net profit of Sino Hotels (Holdings) rose 140 per cent to HK$64.8 million.

Stock bounce

Ahead of the result announcement, shares in Sino Land advanced 4.45 per cent to, in HK$: $14.54