Lai Sun Development Company (488) H2 2024 earnings summary

Executive summary

• Turnover rose 22.4% year-over-year to HK$5,998.9 million, with gross profit up 110% to HK$1,529.9 million, driven by higher rental, property sales, hotel, and media revenues.

• Net loss attributable to owners increased to HK$3,674.7 million, mainly due to higher joint venture losses and fair value changes in investment properties.

• Adjusted EBITDA (excluding fair value and non-recurring items) improved 46.4% to HK$1,151.5 million year-over-year.

• No final or interim dividend was declared for the year.

Financial highlights

• Rental income grew 8.9% year-over-year to HK$1,264.2 million, with high occupancy in Hong Kong and Chinese Mainland.

• Hotel operation revenue surged 21.9% to HK$1,191.4 million, led by Ocean Park Marriott Hotel and post-COVID recovery.

• Recognised property sales jumped 61.6% to HK$1,529.5 million, mainly from Lai Fung Group projects.

• Administrative expenses fell 12% year-over-year due to cost control.

• Net loss per share was HK$2.528 (2023: HK$2.448).

• Adjusted net loss (excluding non-cash and non-recurring items) narrowed to HK$913.8 million from HK$1,025.4 million.

Outlook and guidance

• The global and local economic outlook remains volatile due to geopolitical tensions, high interest rates, and inflation.

• Hong Kong property market faces subdued demand, but government measures and talent inflow are expected to support housing and retail sectors.

• Chinese Mainland property sector remains challenging, but government support and GBA growth offer long-term optimism.

• The Group will continue to review its business portfolio and redeploy resources as needed.