Hongkong Land Holdings (H78) Q3 2024 TU earnings summary

Executive summary

• October strategy shifts focus to ultra-premium integrated commercial properties in Asian gateway cities, prioritising investment properties and recurring income; build-to-sell investment will cease and capital will be recycled.

• Q3 underlying profit rose YoY, mainly on higher Chinese mainland build-to-sell completions; investment-property contributions eased slightly.

Financial highlights

• Q3 underlying profit was higher YoY, principally due to more Chinese mainland build-to-sell completions.

• FY2024 underlying profit is expected to be significantly lower YoY, primarily reflecting US$295 million of non-cash China build-to-sell provisions recognised in H1.

Outlook and guidance

• 2024 planned completions and build-to-sell profitability are expected to be significantly higher than in 2023.

• Chinese mainland residential sentiment improved after policy support; October golden-week contracted sales tripled versus prior weeks.

• Singapore project sales preview drew promising feedback ahead of a mid-November launch; a second project is scheduled to launch in Q1 2025.