Blue-chip property play Hysan Development reported a 51 per cent year-on-year decline in its net profit for the first half of last year. According to a report released at the time by Core Pacific-Yamaichi, the plunge in net profit was mainly due to the absence in gains on the disposal of investment in securities. Last June, the company began to buy shares back in a bid to boost its share price. In the first half of last year, Hysan booked a gain of HK$294 million from the sale of about 25 million China Mobile shares. Hysan's operating profit from rental income also fell in the first half. It dropped 13 per cent due to rental rate deterioration, with the commercial sector taking the biggest hit. Since the commercial rental sector was unlikely to stage much of a rebound in the second half of last year, and with Core Pacific harbouring serious concerns over the possibility of a reduction in dividend payout in the future, the brokerage placed a 'hold' recommendation on Hysan's stock. Graphic: NOW06gwz
