Sun Hung Kai’s interim profit rises on valuation gain, eyes boost from ‘downward trend’ in interest rates
- Developer’s interim net profit stood at HK$9.145 billion (US$1.17 billion) at the end of December, 9 per cent higher than a year earlier
- Despite short-term market volatility, the firm remains confident about the ‘long-term prospects of Hong Kong and its property market’, chairman says
Its interim net profit stood at HK$9.145 billion (US$1.17 billion), or HK$3.16 per share, 9 per cent higher than a year earlier. The increase was driven by a rise in the fair value of its investment properties net of deferred taxation and non-controlling interests worth HK$432 million, compared to a decrease of HK$967 million in the same period last year, the developer said in a stock exchange filing.
Its underlying profit for the six-month period, excluding the fair value change in its investment properties, dropped 6 per cent to HK$8.9 billion. The developer has declared an interim dividend of HK$0.95 per share, 24 per cent lower than a year earlier.
SHKP’s interim result came the same day as Financial Secretary Paul Chan Mo-po’s announcement that the city is removing all stamp duties and other curbs on the property market. The Hong Kong Monetary Authority, the city’s de facto central bank, has also relaxed all restrictions on mortgage lending for properties.
“Hong Kong’s residential market continues to be affected by elevated interest rates and an uncertain economic outlook,” Raymond Kwok Ping-luen, SHKP’s chairman and managing director, said in the exchange filing. “Nevertheless, home rents picked up moderately over the past few months.”
SHKP’s profit generated from property sales reached HK$2.04 billion during the six months, dropping 39 per cent from the HK$3.37 billion reported a year earlier.