Henderson Land, Hong Kong’s third-largest developer, warns of tough times ahead as it reports 9 per cent profit fall for 2021
- Strict social distancing rules mean the retail and F&B sectors will face challenges for some time, Henderson’s chairmen warn
- Henderson Investment, a unit that runs department stores in Hong Kong, said its profit fell 73 per cent to HK$34 million
Last year’s earnings were dented by the absence of a one-off gain from the Miramar Hotel and Investment Company when it became Henderson’s subsidiary in 2020, according to a company filing with the Hong Kong stock exchange on Tuesday.
The developer has nonetheless proposed a dividend of HK$1.30 per share.
A consensus estimate of 10 analysts polled by Bloomberg pegged Henderson’s net income at HK$14.6 billion, a 1 per cent drop.
Hong Kong’s struggle to contain the fifth wave of coronavirus, and the Russian invasion of Ukraine which triggered sanctions that have hit global trade, are likely to subdue the city’s economic recovery, according to a joint statement by company chairmen Lee Ka Kit and Lee Ka Shing.
“Coupled with the geopolitical tensions between China and the US, as well as a potential US dollar interest-rate hike resulting from inflationary pressure in the US, Hong Kong’s economic recovery is restrained,” they said.