Henderson Land Development Company (0012) H1 2026 earnings summary

Executive summary

• Underlying profit for 1H 2026 rose 41% YoY to HK$4,090mn, with reported profit up 66% YoY to HK$5,071mn, driven by strong property sales and government land resumption gains.

• Property development revenue surged 109% YoY to HK$12,892mn, with pre-tax profit from property development and sales up 1,384% YoY.

• Gross rental income from property leasing increased 1% YoY to HK$4,383mn, with Hong Kong rental income up 3% and Chinese Mainland down 10% in RMB terms.

• Share of net profit from HKCG (utility and energy) grew 19% YoY, with interim dividend flat at HK$930mn.

• Interim dividend of HK$0.5 per share declared, unchanged from last year.

Financial highlights

• Shareholders' equity reached HK$325,555mn (+1% vs Dec 2025); net debt decreased 3% to HK$58,432mn.

• Net debt to equity improved to 17.9% (from 18.7%); net asset value per share rose to HK$67.25.

• Basic EPS based on underlying profit: HK$1.05; interim dividend per share: HK$0.50 (flat YoY).

• Interest cover improved to 3.22x (1H 2025: 1.56x); effective borrowing rate lowered to 3.30%.

• Revenue surged 80% YoY to HK$17,203mn, with property development revenue up 194% to HK$11,796mn.

Outlook and guidance

• Eight new HK development projects in 2H 2026, with ~3,400 residential units and 180,000 sq.ft. industrial/office space for sale.

• Attributable contracted sales yet to be recognized: HK$18,303mn, with HK$6,919mn expected in 2H 2026.

• Central Yards Phase 1 to complete in 2H 2026, expanding HK rental portfolio to 11.5mn sq.ft.

• HKCG to continue growth in city-gas and sustainable fuels, with SAF sales doubling YoY.