Billionaire Lui Che-woo, who is the chairman of property developer K Wah International. Photo: AFP
Source:
https://scmp.com/business/companies/article/3002574/hong-kong-developers-henderson-land-k-wah-international-report Companies
Hong Kong developers Henderson Land, K Wah International report small increases in profit, are optimistic about 2019
- Henderson Land’s profit attributable to equity shareholders stood at HK$31.16 billion
- K Wah International said its profit attributable to equity shareholders stood at HK$4.04 billion
Henderson Land’s Lee Shau-kee is seen here with his sons Peter Lee Ka-kit, left, and Martin Lee Ka-shing, both vice-chairmen at the company. Lee suggested on Wednesday he was considering stepping down and handing control to his sons. Photo: Bruce Yan
Hong Kong property developer Henderson Land Development, chaired by tycoon Lee Shau-kee, said on Wednesday profit attributable to its owners inched up by 1 per cent last year, while that of K Wah International, chaired by billionaire Lui Che-woo, rose by 3.6 per cent, in a reflection of Hong Kong’s cooling housing market.
Profit attributable to equity shareholders for the year to December 31, 2018 stood at HK$31.16 billion (US$3.96 billion), an increase of 1 per cent, Henderson Land, one of the city’s largest developers, said in a filing to the Hong Kong stock exchange.
Lee, 90, meanwhile, also suggested in a separate statement he was considering stepping down as chairman, and passing over control to his sons Peter Lee Ka-kit and Martin Lee Ka-shing. He is Hong Kong’s second-richest man.
Excluding revaluation gains on investment properties, the company’s core profit rose by 1 per cent to HK$19.77 billion, missing an analysts’ forecast by 3 per cent, while its revenue dropped 21 per cent to HK$21.98 billion.
Property sales contributed with HK$16.32 billion in revenue, down 29 per cent year on year. Shares of the company rose 1.1 per cent to HK$46.10 on Wednesday, before the results were released and Lee made his announcement regarding retirement.
The company said it would pay a final dividend of HK$1.3 per share, as well as a 1-for-10 bonus issue.
Also on Wednesday, K Wah International said its profit attributable to equity shareholders for 2018 stood at HK$4.05 billion, an increase of 3.6 per cent over 2017, while revenue was down 4.7 per cent to HK$10.76 billion. the company said it would pay a final dividend of HK$0.14 per share.
A multi-year bull run in the Hong Kong property market came to an end in August last year. By the end of December 2018, the cumulative decline in home prices stood at 9.2 per cent, according to the city’s Rating and Valuation Department.
Both developers, however, said they were expecting a better year ahead. K Wah’s Lui said on Wednesday: “The housing market has recovered and home prices this year will be stable.
“Home prices are quite high in the city due to lack of land,” he said, urging the government to look for more land to ease supply.
Henderson Land said: “Recently, market sentiment has shown signs of improvement, as China and the United States have worked closely to resolve their trade disputes, and the Federal Reserve has also taken a cautious approach towards raising interest rates.”
The company, a major seller of micro apartments in Hong Kong, said it planned to release six development projects, and along with unsold inventory, was aiming to put 3,000 residential units onto the market.
Meanwhile, data released by Hong Kong agency Centaline Property on Wednesday showed the prices of secondary homes had risen for the past four weeks, after declining by 10 per cent in the seven months through January.