Guoco Group (53) H1 2026 earnings summary

Executive summary

• Profit attributable to shareholders rose 13% year-over-year to HK$2,026.5 million for the six months ended 31 December 2025, driven by strong operational performance across all segments.

• Net profit attributable to equity holders rose 14% year-over-year to $85.4 million for the half year ended 31 December 2025, despite a 22% decline in total revenue to $791.9 million, mainly due to timing of revenue recognition in Singapore property development projects.

• Basic earnings per share increased to HK$6.23 from HK$5.50 in the prior period.

• Interim dividend declared at HK$0.70 per share, up from HK$0.60, totaling approximately HK$230 million.

• Other income surged by $17.2 million, driven by the disposal gain of Thistle Johor Bahru hotel in Malaysia.

Financial highlights

• Revenue decreased by 7% year-over-year to HK$11.7 billion, mainly due to lower property development revenue in Singapore.

• Net profit: $98.6 million, up 13% year-over-year.

• Net cash generated from operating activities was US$655.2 million; net cash used in financing activities was US$1,086.2 million.

• Total equity attributable to shareholders stood at HK$70.0 billion as of 31 December 2025.

• Net asset value per share: $3.93 as at 31 December 2025.

Outlook and guidance

• Global economic conditions in 2026 expected to remain mixed, with moderate US growth and ongoing geopolitical and policy risks.

• Singapore's residential and office markets are expected to remain stable, supported by robust economic growth and low unemployment.

• China’s real estate sector remains challenging, with continued policy support but uneven market stabilisation.

• Group will focus on prudent financial management, operational efficiency, and resilience amid market volatility.