Henderson Land Development Company (0012) H1 2024 earnings summary

Executive summary

• Underlying profit attributable to shareholders for H1 2024 was HK$5,441 million, down 10% year-over-year; reported profit was HK$3,174 million, down 47% due to higher fair value losses on investment properties.

• Revenue rose 14% to HK$11,762 million, driven by property development and other businesses.

• Interim dividend per share maintained at HK$0.50.

• Major one-off gains included HK$1,407 million from disposal of Harbour East and HK$1,096 million from government land resumption.

Financial highlights

• Property development revenue increased 14% to HK$4,943 million; pre-tax profit up 65% to HK$1,475 million.

• Property leasing revenue grew 1% to HK$3,459 million; net rental income up 1% to HK$3,276 million.

• Department stores and supermarket operations revenue fell 3% to HK$778 million; profit contribution dropped 65%.

• Hotel room operation revenue rose 7% to HK$165 million; pre-tax profit up 36%.

• Net asset value per share was HK$66.60, down 1% from end-2023.

Outlook and guidance

• Five development projects are in the pipeline for sales launch in Hong Kong in H2 2024, totaling about 2.23 million sq. ft. or 4,600 units.

• Attributable contracted sales of HK$20,769 million not yet recognized, with HK$12,495 million expected in H2 2024.

• Expecting HK$3,100 million gain from further land resumption in H2 2024.

• Rental income to benefit from new completions and high occupancy rates, including The Henderson and Central Harbourfront project.

• HKCG's renewable energy and city-gas projects in Mainland China expected to support future profit growth.