Wharf reports hefty rise in first-half profit, core earnings hit new record

PUBLISHED : Thursday, 23 August, 2012, 3:11pm
UPDATED : Thursday, 23 August, 2012, 3:32pm

Wharf (Holdings) (0004.HK) said on Thursday that first half attributable profit rose by almost two thirds to HK$23.65 billion, powered by a strong performance in China.

It said core interim profits rose by 49 per cent year-on-year to a new high of HK$5.43 billion.

"The remarkable results reflected the extraordinary performance of the group's property development, particularly in the mainland, and the strong recurrent rental revenue growth," the blue chip group said in a statement. It added that the result was also lifted by an increased property revaluationi surplus and by a one-off profit from the acquisition of an associate, Greentown China Holdings.  

The group said revenue growth was underpinned by a higher contribution from property sales in Hong Kong and on the mainland and by a double-digit revenue increase from its property investment arm.

It said property investment revenue in Hong Kong rose by 14 per cent to HK$4.38 billion helped by a strong retail sector, and by positive rental reversions for office space, particularly in Harbour City and Times Square.

"Revenue from the mainland also increased substantially by 51 per cent to HK$479 million, as (the group) benefited from the escalating revenue generated by the brand new Shanghai Wheelock Square, as well as the renovated Chongqing Times Square," it said.

Wharf said hotel revenue rose nine per cent to HK$649, helped by higher room rates and continued high occupancy levels, although operations were affected by renovation work at the Prince Hotel. "In aggregate, the segment reported an increase in revenue of 16 per cent to HK$5.51 billion," Wharf said.