SHKP posts 4.6% profit rise amid Hong Kong’s property recovery

Sun Hung Kai Properties (SHKP), Hong Kong's largest developer by market capitalization, reported a 4.6% rise in its underlying profit for the year ending June, reaching HK$22.85 billion (US$2.91 billion). This increase was driven by improved economic conditions, an active financial market, and favorable interest rates, according to the company's chairman and managing director, Raymond Kwok Ping-luen.

The company's reported profit also rose to HK$21.43 billion, thanks to a significant HK$1.38 billion net revaluation gain, which reversed a loss from the previous year. Kwok attributed the improvement in Hong Kong's residential property market to high inflow of talent and students, which bolstered residential rents and homebuyers' confidence.

Key projects, such as Sierra Sea in Sai Sha Residences and Cullinan Sky and Cullinan Harbour in Kai Tak, continued to receive positive sales responses. The group plans to launch additional projects, including Sierra Sea phase 2C, phase 1A of Tung Shing Lei, and a new development in Tai Wai, among others. SHKP emphasized its ongoing support for Hong Kong's Northern Metropolis project, with eight development projects providing around 10,000 residential units and supporting amenities.

The company's gross rental income rose by 1% to HK$17.7 billion, with occupancy remaining stable due to strong activities in the IPO and financial markets. SHKP expects Hong Kong's economy and Hong Kong's growth to remain resilient, with a strong first five-year plan strengthening the city's position as a leading offshore renminbi hub and wealth-management center.

The company declared a final dividend of HK$2.93 per share, reflecting a 4% increase from the previous year.