Kerry Properties posts 98pc jump in interim profit
Major developer Kerry Properties gave an optimistic outlook on the prospect of the year’s second half, after posting a 98 per cent rise in underlying interim profit as the back of a surge in flats delivery from a Hong Kong project.
The company recorded a net profit from underlying operations of HK$2.83 billion (US$362 million) in the year’s first six months, up from HK$1.43 billion in the same period last year, it said in a filing to Hong Kong’s bourse on Monday.
It amounted to 52.9 per cent of the HK$5.35 billion full year average estimate of 17 analysts polled by Bloomberg.
When accounting gains on fair value assessment of its investment properties were included, reported net profit had risen 62 per cent year-on-year to HK$3.31 billion.
“For the remainder of 2017, the local economy will continue to be supported by solid fundamentals and favourable employment conditions,” Kerry said. “The Group’s Hong Kong segment is expected to maintain stable sales momentum in the coming quarters.”
On the mainland, it achieved its sales target despite uncertainties surrounding China’s housing policies and economic growth.
“Recent central government policies have aimed at reining in soaring property prices,” Kerry said. “[Our mainland China division] has adjusted the pace of its property sales in various cities.
“In view of China’s continued economic growth, management remains confident in the long term prospects of its [mainland operations].”
The first-half profit was bolstered mostly by the delivery of flats sold at Mantin Heights in Hong Kong. It booked a gross profit of HK$1.18 billion from the city, compared to only HK$69 million in the same period last year.
Some 53 per cent of a total of 1,429 units of the project in Ho Man Tin, Kowloon has been sold by the end of June this year, it added.
First half gross profit from rental and related operations rose 13.2 per cent year-on-year to HK$1.78 billion, while that from property sales jumped 127 per cent to HK$2.16 billion – primarily driven by the Hong Kong project.
Kerry Monday closed 2 per cent higher at HK$27.90. It has gained 32.5 per cent year to date, ahead of 23.4 per cent of the Hang Seng Index.