Kowloon Development Company (34) H2 2024 earnings summary

Executive summary

• Underlying profit attributable to shareholders for 2024 was HK$450 million, down 21.5% year-over-year.

• Profit attributable to shareholders, including fair value changes, was HK$116 million, a 65.6% decrease from 2023.

• Full year dividend for 2024 is HK$0.22 per share, significantly lower than HK$0.83 in 2023.

• The property market in Hong Kong and Mainland China faced significant challenges, with weak demand and declining prices.

Financial highlights

• Revenue for 2024 was HK$5,389.8 million, up from HK$2,942.8 million in 2023.

• Basic and diluted EPS for 2024 was HK$0.09, down from HK$0.29 in 2023.

• Gross rental income in Hong Kong decreased by 3.4% to HK$286 million.

• Net bank borrowings reduced to HK$18,334 million; gearing ratio improved to 104.4%.

Outlook and guidance

• Economic uncertainty expected in 2025 due to new US policies and potential for faster interest rate cuts.

• Hong Kong property market may benefit from stamp duty adjustments and new project launches.

• Conservative dividend policy to continue for the next two years due to large-scale development investments.