Hopson Development (0754) H2 2024 earnings summary

Executive summary

• Turnover increased 10% year-over-year to HK$37,834 million, but profit attributable to equity holders dropped sharply to HK$120 million from HK$2,922 million.

• Underlying profit rose 35% to HK$3,123 million, reflecting adjustments for non-recurring items.

• The real estate market in China remained in an adjustment phase, with significant year-on-year declines in contracted sales and delivered GFA.

• The group maintained stable cash flow and profitability, but faces ongoing sector and macroeconomic challenges.

Financial highlights

• Gross profit was HK$9,558 million, with a margin of 25% (down from 28% in 2023).

• Basic and diluted EPS was HK$0.03 (2023: HK$0.77).

• Cash and bank deposits stood at HK$11,398 million, down from HK$15,368 million.

• Gearing ratio improved to 64% (2023: 71%).

• No dividend was proposed for 2024.

Outlook and guidance

• The group expects continued macroeconomic uncertainty and sluggish growth in 2025, with the real estate sector still under pressure.

• Government support and regulatory optimization are anticipated to stabilize the property market.

• The group will focus on prudent operations, risk control, and enterprise upgrading to drive long-term value.