bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Pearl Liu

Hong Kong conglomerate Wharf Holdings said it will explore opportunities in new media and technology with a focus towards China and the US, even as it maintains its traditional focus on property developement.
“We believe that communications, media and entertainment [CME] are businesses with great potential, however the market in Hong Kong is too small. We decided to step out and put our eyes on larger markets, China for example and the US probably,” said Stephen Ng Tin-hoi, chairman and managing director of the company.
Ng referred to the new investment focus as “CME2”, or new economy themes that go beyond the company’s previous investment track record in media and telecoms.
“CME2 means those areas we were not in before, for example, online platforms,” Ng said. 
The chairman did not give details on the possible investments, but said they included some listed companies that people are familiar with. 
“Our traditional business has seen steady growth and we are looking for new opportunities,” Ng said at the company’s annual results briefing on Thursday. 
In the second half of 2017, Wharf put HKS$25.5 billion (US$3.25 billion) into listed companies, with about 60 per cent directed to business involved in new tech.
Ng said the company’s investment mandate will be expanded to include non publicly traded companies.
The company withdrew from the telecom businesses upon the sale of i-CABLE Communications in September last year and Wharf T&T in 2016. 
The chairman said that property development in Hong Kong and China is still the backbone of Wharf, however land supply issues remain a headache.
The company reported a 14 per cent increase in 2017 core profit on Thursday, in the first results announcement after Wharf Real Estate Investment Company (Wharf REIC) was spun off from the parent group in November. 
Wharf’s core profit came in at HK$15.72 billion (US$2.01 billion), or HK$5.18 per share, for the year ended December 31, according to the company’s filing to the Hong Kong stock exchange. 
Wharf reported HK$3.8 billion of core profit contributed by China development properties, up 145 per cent on year. 
The company generated revenue of HK$43.27 billion for the year, down 7.2 per cent from HK$46.63 billion in 2016. Net profit inched up 2 per cent to HK$21.88 billion. 
A second interim dividend of 95 HK cents per share was declared, bringing the annual payout to shareholders to HK$1.59 per share. 
The company reported that had the real estate assets been spun off before 2016, its 2017 core profit would have increased by 36 per cent to HK$7.1 billion. 
Wharf hived off six investment properties in Hong Kong with a market value of over HK$230 billion into the Wharf REIC.
Wharf’s real estate spin-off ends debut trade near ‘fair value’
These included prime assets such as Harbour City and Times Square – the city’s two biggest malls – and Plaza Hollywood, Crawford House, Wheelock House and The Murray. 
“Wharf has an advantage in the high-end property market. We still see strong interest and high demand in Hong Kong’s luxury properties among investors. It will continue to be one of the key drivers of Wharf’s earnings in the future,” said Raymond Cheng, director of property equity research at CIMB Securities. 

A total of five houses and 14 flats were sold in Mount Nicholson at The Peak in 2017, for HK$9.4 billion, the company said.
Last year, an unnamed buyer paid HK$560 million for a 4,242 square foot four-bedroom unit, or HK$132,000 per sq ft, on the 12th floor of the Mount Nicholson, making it the most expensive residence in Asia on a square-footage basis.
Shares of Wharf Holdings closed 0.7 per cent higher at HK$31 on Thursday.


Hong Kong politician Bunny Chan bets US$40 million on luxury market with Stanley purchase

Morgan Stanley lifts Hong Kong property to ‘attractive’, with rebound to extend into 2027

Hong Kong developers test demand for ultra-luxury homes with new launch on The Peak

Hong Kong shipping baron’s nephew buys US$9.6 million flat in Repulse Bay

Wharf Holdings

Wharf looks to China, US in search for opportunities to deploy cash war chest

Wharf Holding reported attributable sales of HK$4.7 billion in 2017, helped by a strong reception to its luxury development at 8 Mount Nicholson at The Peak. Photo: Sam Tsang

A general view shows Mount Nicholson, a luxury housing development, in Hong Kong on November 21, 2017. Another record price for a home in Asia was set after a Hong Kong residential unit at a mountain-top luxury apartment building was sold for over 70 million USD. / AFP PHOTO / ANTHONY WALLACE

Wharf Holdings records 20pc increase in earnings

Wharf Holdings sees 5pc rise in interim profit

Wharf Holdings to turn historic Murray Building into luxury hotel

(L to R) Duncan Palmer, MD of The Murray, and Stephen Ng, chairman and managing director of Wharf Holdings, at the launch of The Murray hotel on Wednesday. Photo: Xiaomei Chen