Great Eagle (41) H2 2024 earnings summary

Executive summary

• Core revenue rose 4.1% to HK$7,833.1m; core profit attributable to equity holders fell 16.4% to HK$1,553.0m, or HK$2.08 per share.

• Statutory revenue increased 2.2% to HK$10,878.5m; attributable results swung to a HK$1,734.2m loss from HK$763.5m profit, chiefly amid investment-property fair-value losses.

• Total dividends remained HK$0.87 per share, comprising HK$0.37 interim and a proposed HK$0.50 final dividend.

Financial highlights

• Core operating income declined 8.7% to HK$2,885.6m; 2023 included a one-off HK$300.3m ONTOLO contractor cost adjustment, while 2024 income was largely stable excluding that item.

• Core profit before tax fell 18.6% to HK$1,769.2m; finance costs rose 15.4% to HK$512.0m and interest income fell 11.7% to HK$172.6m.

• ONTOLO sales revenue increased 24.7% to HK$1,340.5m; gross profit fell 24.9% to HK$599.0m, against a 2023 comparison that included the one-off cost adjustment.

• Core EPS was HK$2.08 versus HK$2.49 in 2023; statutory basic and diluted EPS was a loss of HK$2.32 versus earnings of HK$1.02.

Outlook and guidance

• 2025 outlook remains cautious amid geopolitical tensions, high interest rates and possible trade conflicts; Mainland China demand-boosting policies could support Hong Kong.

• Residential sales of remaining ONTOLO and ONMANTIN inventory will be approached cautiously; medium-term Hong Kong residential prospects are viewed positively despite high inventory.

• Hotel outlook is stable but challenged by staffing shortages, higher operating costs and uncertainty; expense control and operational initiatives remain priorities.

• Hong Kong office rental pressure and high rates may weigh on Champion REIT; Langham Place Mall is expected to remain relatively resilient. LHI faces cost and financing headwinds, while longer-term tourism prospects are positive.