Sun Hung Kai Properties (16) investor relations material

Executive summary

• Underlying profit attributable to shareholders rose 4.6% year-on-year to HK$22,850 million, with reported profit up 11.1% to HK$21,426 million and underlying EPS at HK$7.89.

• Reported EPS increased 11.1% to HK$7.39; final dividend per share up 4.6% to HK$2.93, total annual dividend HK$3.91.

• Net debt reduced to HK$67,615 million, with gearing ratio at 10.7% and interest cover improved to 8.5x.

• Strong contracted sales in Hong Kong reached HK$38.1 billion, exceeding targets, and robust recurring income base supports future growth.

• Prudent financial management and major new projects underpin a positive outlook.

Financial highlights

• Revenue from Hong Kong property development surged 69% year-on-year to HK$44,137 million; Mainland revenue up 19% to HK$10,054 million.

• Operating profit was HK$32.2 billion (stable year-on-year); net profit attributable to shareholders was HK$21,426 million.

• Gross rental income in Hong Kong increased 1% to HK$17,703 million; Mainland rental income up 5.2% to HK$6,495 million.

• Hotel operations revenue rose 4% to HK$5,460 million, with operating profit up 18% to HK$728 million.

• Net finance costs fell 33% year-on-year to HK$2,949 million.

Outlook and guidance

• Robust launch pipeline in Hong Kong and Mainland China, with HK$22.8 billion in contracted sales yet to be recognized in Hong Kong and HK$0.8 billion in Mainland China, mostly in FY2027.

• FY2027 Hong Kong contracted sales target set at HK$33 billion; continued focus on selective land acquisitions and prudent financial discipline.

• New projects such as International Gateway Centre, The ANGLE, Cullinan Sky Mall, and Artist Square Towers to drive future rental income.

• Dividend payout policy remains at 40%-50% of earnings per share.

• Market outlook remains cautious due to global uncertainties, but local demand for quality housing and office space is expected to stay resilient.