Property boosts HKRI interim profit 49.6pc to reach $883m

PUBLISHED : Saturday, 20 December, 1997, 12:00am
UPDATED : Saturday, 20 December, 1997, 12:00am

Property developer HKR International says its attributable interim profit jumped 49.6 per cent to $883 million for the six months ended in September, boosted by strong property sales.


The company said pre-tax profit amounted to $1.11 billion, up 47.6 per cent, based on pre-sale and construction progress.


During the period, HKR pre-sold more than 2,000 residential units in phase two and three of Discovery Park, Tsuen Wan - a joint venture project with New World Development.


It said rental income would be boosted by the 630,000 square foot shopping mall in Discovery Park which would be open for business shortly and would award the group 50 per cent of its rental.


Managing director Payson Cha Mou-sing said the group was taking advantage of the economic slowdown to negotiate better premium terms for the 2.3 million square foot development in Discovery Bay.


The company said the Discovery Bay phase nine and 10 were planned for pre-sale in the next financial year.


Construction on the Tung Chung airport station site, phase two, had begun after the award of a contract for phase one. The Town Planning Board has approved an additional 35 per cent gross floor area to be built in Tung Chung which could enhance the development value of the project.


Turnover rose 56.37 per cent to $3.19 billion from $2.04 billion over the same period last year.


Earnings per share soared 49.51 per cent to 76.4 cents from 51.1 cents.


Fully diluted earnings per share rose 45.94 per cent to 68.3 cents against 46.8 cents the previous year.


Directors declared an interim dividend of nine cents, the same as last year.


HKR's parent company, Mingly Corporation, saw interim profit rise 42.4 per cent to $553.8 million, driven by earnings contribution from its principal subsidiary, HKR Int.