Sun Hung Kai Properties (SHKP), one of Hong Kong's largest developers, is expected to announce on Wednesday solid mid-year profit growth even though property prices continued to slide.
However, Hysan Development and Great Eagle Holdings, two of the city's biggest commercial landlords, may have felt a bigger pinch from the property market downturn.
SHKP is forecast to report its net profit rose 12 to 15 per cent to between HK$3.56 billion and HK$3.66 billion for the six months to December last year because of lower interest costs and stronger profit on development projects, according to analysts polled by the South China Morning Post.
Hysan and Great Eagle are expected to turn in flat or even slight declines in full-year earnings when they release results tomorrow.
UBS Warburg analyst Paul Louie said SHKP would announce a 15 per cent increase in its interim net profit because of solid property sales.
Mr Louie estimated that 82 per cent of the developer's projects completed during the period were pre-sold with a 21.5 per cent profit margin, offsetting a 4.5 per cent fall in net rentals.
The earnings boost was partly due to the absence of a HK$450 million restructuring charge made for subsidiary Sunevision Holdings during the corresponding period a year earlier.
