K Wah International reports 2016 underlying profit up 113pc, lifted by robust sales

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K Wah International has a pipeline of projects that include K City in Kai Tak. Photo: Edward Wong

Published: 4:45pm, 21 Mar 2017Updated: 4:49pm, 21 Mar 2017

K Wah International Holdings reported 2016 underlying profit jumped 113 per cent to HK$2.8 billion (US$360.53 million), lifted by robust property sales in Hong Kong and the mainland.

The mid-sized developer said profit attributable to equity holders rose to HK$3.18 billion, compared to HK$1.37 billion a year earlier, according to a filing to the Hong Kong stock exchange on Tuesday.

Mainly driven by sales of Grand Summit in Shanghai, J Wings and J Metropolis in Guangzhou, Silver Cove in Dongguan, Twin Peaks in Hong Kong, as well as the rental income of the Shanghai K Wah Centre, the developer saw its revenue rise to HK$9.6 billion compared to HK$4.7 billion in 2015.

The gains came as Hong Kong, the least affordable city in the world, saw record home prices against a backdrop of a slowing economy and dwindling mainland tourist visits.

“Hong Kong’s property market has seen a roller coster year in 2016,” said Lui Che-woo, chairman of K Wah. “Although the government rolled out new cooling measures for the sector, strong demand from home buyers has supported the sector to maintain stable growth.”

Low interest rates, smaller units rolled out by developers, as well as strong interest among mainland Chinese property investors have propelled the property market despite a raft of cooling measures, which includes an expansion of stamp duties for property transactions for the first time in three years in November.