New World Development upbeat on HK market after posting 5pc gain in core profit

New World Development is optimistic on the outlook of the Hong Kong property market, after posting a modest 5 per cent gain in underlying profit to HK$4.41 billion for the six months to December.

For the half year, the company achieved attributable contracted sales in the city of HK$13.4 billion, exceeding its fiscal year target of HK$12 billion, chairman Henry Cheng Kar-shun said in the results announcement filed with the stock exchange on Friday.

“If the period is calculated from January to December 2014, the group’s attributable contracted sales in Hong Kong amounted to HK$22.3 billion,” he said.

“It is expected that property sales in Hong Kong will continue to enjoy steady development, in light of low interest rates, consistent policy implementations and property developers’ close-to-market pricing and provision of special offers for attracting purchasers.”

Including property revaluation gains, the group’s net profit was HK$5.85 billion, an increase of 29 per cent from the same period in the previous year.

Turnover fell to HK$26.99 billion from HK$27.18 billion. Directors declared an interim dividend of 12 HK cents a share.