Sun Hung Kai Properties (SHKP) is expected to report earnings growth of up to 50 per cent for the year to June, helped by higher property income and a one-off gain from the sale of a stake in Asia Container Terminals Holdings.
Analysts predict net profit, to be announced today, will be $9.6 billion to $10.5 billion, up 40 per cent to 50 per cent year on year before gains from property revaluations.
The company had booked a $1.41 billion profit contribution from the sale of its investment in Asia Container Terminals in the first half.
'Excluding the one-off gains, we expect a core net profit of $8.34 billion, up 22 per cent year on year, due to higher contributions from property sales and property rentals,' Citigroup analyst Tony Tsang wrote in a research report.
With extraordinary gains, the bank expects net profit to be $10.22 billion, up 48 per cent.
Kenny Tse, a property analyst at Morgan Stanley, said profits would be helped by a higher development margin due to the improving property market and increased rental income from IFC in Central.