Shun Tak Holdings

Property sales boost double dividend at Shun Tak

PUBLISHED : Tuesday, 26 March, 2013, 12:00am
UPDATED : Tuesday, 26 March, 2013, 5:43am

Shun Tak Holdings has more than doubled its final dividend as strong property sales drove underlying profit 18 per cent higher last year.

The company said core earnings amounted to HK$453 million for the year to December, up from HK$384 million in 2011.

Taking into account HK$2.11 billion in revaluation gains from investment properties, net profit was HK$2.56 billion last year, more than triple the HK$781 million recorded in 2011.

The company recommended a final dividend of 8.5 HK cents, up from 4 HK cents in 2011.

Turnover jumped 85 per cent to HK$5.49 billion.

Managing director Pansy Ho said: "Strong performance from the property division was underpinned by revenue generated from the sale of Chatham Gate and the disposal of a valuable property within Star House."

Profit from the property division, excluding a revaluation surplus, was HK$761 million, up 40 per cent from the previous year's HK$545 million. The figure was boosted by a net gain of HK$262 million from the sale of a property at Star House for HK$645 million in August last year.

The company said it had identified a site in the new business district of Beijing, Tongzhou to develop an "iconic" building comprising retail and office space and serviced apartments. The proposed project, in which the group has a 24 per cent stake, will yield 402,000 square metres of total gross floor area.

Operating profit from the company's transportation division, mainly ferry services between Hong Kong and Macau, increased more than eightfold to HK$65 million thanks to a fare rise for its TurboJET service. In addition, the acquisition of New World Ferry Services (Macau) brought economies of scale and allowed TurboJET to tap the high-volume tour group market departing from Kowloon.

Last year, TurboJET carried 13.9 million passengers on routes between Hong Kong and Macau, including Kowloon, an increase of 20 per cent over 2011.

Its hospitality business posted a 75 per cent growth in operational profit to HK$98 million The investment division recorded a gain of HK$87 million, up from HK$54 million a year ago, largely from dividends from Sociedade de Turismo e Diversoes de Macau (STDM).

The company's shares rose 0.24 per cent to HK$4.16.