Hong Kong’s Sun Hung Kai Properties records 36pc interim profit jump
City’s second-largest developer by market value beats analysts’ forecast to earn US$2.5 billion in core profit for July to December period
Sun Hung Kai Properties, Hong Kong’s second-largest developer by market capitalisation, urged the government to increase the supply of land to contain soaring land prices, after it reported on Tuesday that its underlying profit for the July to December period had climbed to a 10-year high.
Its core profit, excluding revaluation gains on investment properties, jumped by 36.7 per cent to HK$19.97 billion (US$2.5 billion) for the July to December period, driven by an upwards spiral in home prices and strong sales. Net profit, including property revaluation gains, was up by 59.9 per cent to HK$33 billion.
Its core earnings beat the HK$17.5 billion and HK$18 billion forecast by Morgan Stanley and CIMB Securities, respectively.
“The earnings growth driver is Hong Kong property sales,” Praveen Choudhary, a Morgan Stanley equity analyst, said in a research note.
Sun Hung Kai Properties shares closed down 0.61 per cent at HK$129.80 on Tuesday, before the results were announced.
During the six months under review, profit generated from property sales stood at HK$13.9 billion, compared with HK$8.3 billion over the same period last year.
