Rise in Poly earnings defies tightening
Poly (Hong Kong) Investments, the locally listed vehicle of state-owned conglomerate China Poly Group, posted a 176 per cent increase in underlying profit to HK$1.71 billion for last year, helped by its enlarged property portfolio and profits booked in the period.
Despite tightening measures imposed by the central government to cool the country's overheated property sector, Poly (Hong Kong) chairman and managing director Xue Ming said he was confident about the company's outlook and reiterated a contract sales forecast for 18 billion yuan (HK$21.35 billion) this year.
'Opportunities always arise when there are uncertainties in the market. Those who don't know the market well will miss out on the opportunities. But we have a pretty good idea of what is going on. That is why we are confident of achieving the targeted sales,' said Xue.
The company plans to build more projects this year.
The developer yesterday announced profit attributable to shareholders surged to HK$1.84 billion from HK$660 million in 2009. Excluding the property revaluation gains, underlying profit was HK$1.71 billion.
Earnings per share were up 86 per cent to 55.83 HK cents per share. The final dividend rose 252 per cent to 15.5 HK cents.
Looking ahead, Xue said the company would continue to expand its land bank and extend into new markets such as the second- and third-tier cities along the Yangtze River and Pearl River Delta regions.
The company said it had no plans to follow other mainland developers and issue bonds or notes because its financial position remained healthy.
Its net gearing ratio is 62 per cent and its strategy is to maintain the level to below 70 per cent. Net asset value per share jumped 24 per cent to HK$6.10.
Poly (Hong Kong) was originally set up in 1973 as Haikang Investment, a shipping company. In 1993, state-owned conglomerate China Poly acquired a 55 per cent stake in the company and renamed it in 2005. Poly has been expanding at a fast pace for the past two years, helped by asset injections from its parent company.
Last year, the company acquired 12 sites in Shanghai, Ningbo, Wuhan, Nanning, Guiyang, Kunming and Jinan, with a total planned gross floor area of 6.06 million square metres.
Poly posted a final dividend of 15.5 HK cents a share, an increase of: 252%