Kowloon Development Company (34) H1 2025 earnings summary

Executive summary

• Underlying profit attributable to shareholders rose 8.0% year-over-year to HK$312 million for the six months ended 30 June 2025, but underlying EPS slightly decreased to HK$0.239 due to a scrip dividend effect.

• Unaudited profit attributable to shareholders, including fair value changes, increased 10.6% year-over-year to HK$125 million.

• Interim dividend maintained at HK$0.10 per share, payable in January 2026.

Financial highlights

• Revenue for the period was HK$2,428.8 million, up from HK$1,940.9 million year-over-year.

• Profit from operations was HK$239.9 million, with profit before taxation at HK$195.8 million.

• Net profit attributable to shareholders was HK$124.6 million, with basic and diluted EPS at HK$0.10.

• Gross rental income from Hong Kong investment properties fell 10.8% year-over-year to HK$132 million.

• Gearing ratio reduced to 100.9% from 104.4% at year-end 2024.

Outlook and guidance

• Residential property sales and prices in Hong Kong expected to improve if HIBOR remains low and economic growth continues.

• Commercial and retail property segments likely to face continued downward adjustments due to high vacancy and weak demand.

• Major project launches and completions expected in the second half of 2025 and beyond, including Upper Manor and Clear Water Bay Road.

• Conservative dividend policy to be maintained due to capital demands and market conditions.