HKEX | 10,101
Hang Lung Properties 1H underlying net profit drops 4% yoy to HKD2.229bn
As social events continue to unfold, Weber Lo, Chief Executive Officer of Hang Lung Properties (101), which operates a number of shopping malls in the city expressed his concern of how social incidents have made Hong Kong people uneasy, and hoped peace to be restored as soon as possible. He continued to refer to the fact that some tenants reflected that social events have a certain impact on their business, but the actual impact is still being estimated.
As for the impact on the company's rental income, Ronnie Chan, Chairman, expressed difficulty in predicting if the growth of 3% in the first half of the year could be maintained in the second half of the year. While tourism and other industries are undeniably affected, there are still sources of income as leases with merchants are still effective. He also pointed out that he is still confident in the prospects of business in Mainland China, and some property rentals are expected to exhibit double-digit growth in the next few years.
Lo pointed out that the company currently has two development projects in Hong Kong. The Amoy Industrial Estate project has successfully undergone complusory auction and is planned to be renovated into a residential property, completion expected in 2022-2023. Another project is the Electric Road commercial project, which is expected to be completed and sold in 2022. Land premiums have been settled for these projects, and construction costs are estimated to be more than HKD1 billion.
Hang Lung Properties' revenue in the first half of the year was HKD4.204 billion, down 18% year-on-year; property leasing income in Hong Kong rose 3% year-on-year to HKD2.014 billion; property leasing income in the Mainland rose 1% year-on-year to HKD2.19 billion, and rose 7% in terms of RMB. Profit attributable to shareholders fell 25% year-on-year to HKD3.516 billion. Underlying net profit fell 4% to HKD2.229 billion, of which property lease net profit rose 25% year-on-year; there was no property sales income during the period while the property sales income in the same period last year was HKD565 million. Interim dividend was HKD0.17.
Hang Lung Group's (10) revenue in the first half of the year fell 17% year-on-year to HKD4.505 billion, and profit attributable to shareholders rose 22% year-on-year to HKD3.709 billion. Core net profit rose 59% year-on-year to HK$2.324 billion. Interim dividend of HKD0.19.