Kowloon Development Company (34) H1 2017 earnings summary

Executive summary

• Net profit attributable to shareholders for the six months ended 30 June 2017 was HK$409 million, up 40.5% year-over-year; underlying net profit (excluding revaluation gains) rose 29.1% to HK$346 million.

• Interim earnings per share increased to HK$0.36 (2016: HK$0.25); underlying net interim EPS was HK$0.30 (2016: HK$0.23).

• Interim dividend per share declared at HK$0.22, up from HK$0.21 in 2016.

• Major land acquisition in Tseung Kwan O, Hong Kong, added 48,200 sq m to the residential landbank.

Financial highlights

• Revenue for the period was HK$1,556 million, with profit from operations at HK$389 million.

• Profit before taxation rose to HK$502 million from HK$335 million year-over-year.

• Total comprehensive income for the period was HK$681 million, compared to a loss of HK$147 million in 2016.

• Cash and cash equivalents at period end were HK$1,218 million.

Outlook and guidance

• Presale of 63 Pokfulam launched in July 2017; presale for Lei Yue Mun planned for first half of 2018.

• Upper East project in Hung Hom scheduled for completion in 2018, with over 90% of units presold.

• Several Mainland China projects expected to complete in the second half of 2017, with sales proceeds to be booked accordingly.

• La Marina in Macau expected to deliver presold units in Q4 2017; remaining units to be sold in phases.

• Oil business in Kazakhstan not expected to contribute to earnings in the second half of 2017.