Hong Kong developer New World Development reports profit jumps 204 per cent to HK$23.34 billion

Hong Kong property developer New World Development reported on Thursday net income of HK$23.34 billion for the financial year ended June 30, reflecting a 204.1 per cent surge from last year.

The Hong Kong-listed company posted an underlying profit of HK$7.98 billion (US$1.02 billion) for the period, up 11.8 per cent year on year, beating an average analyst estimate of HK$7.81 billion, according to a poll by Bloomberg.

Revenue rose 7 per cent year on year to HK$60.69 billion for the financial year of 2018, slightly below analyst estimates of HK$61.33 billion on Bloomberg data.

New World Development’s soaring net income was driven by improved performance in property development in Hong Kong and mainland China, and improved road and aviation businesses in its infrastructure segment, the company said.

Revaluation gains in investment properties brought by the new art and design development Victoria Dockside and the Hong Kong office sector also drove profit, according to the company.

New World Development expects the Victoria Dockside development in Hong Kong’s Tsim Sha Tsui to open in the third quarter of 2019.