Kerry Properties (683) H1 2025 earnings summary

Executive summary

• Combined revenue rose 65% year-over-year to HK$9,954 million, driven by strong property sales in Hong Kong and the Mainland, especially from the Jinling project in Shanghai and Mont Verra and La Montagne in Hong Kong, but underlying profit fell 30% to HK$978 million due to lower margins, rental income, higher taxes, and increased costs.

• Profit attributable to shareholders declined 22% to HK$612 million, with EPS at HK$0.42 and adjusted EPS at HK$0.67.

• Interim dividend maintained at HK$0.40 per share.

• Contracted sales surged 130% to HK$16,186 million, mainly from the Shanghai Jinling project and with Mainland projects contributing 66% of the total.

Financial highlights

• Combined revenue: HK$9,954 million (+65% YoY); property sales up 176%, rental and hotel revenue down 5%.

• Underlying profit: HK$978 million (-30% YoY); profit attributable to shareholders: HK$612 million (-22% YoY).

• Gross margin dropped to 27% from 45% due to product mix and higher fixed costs.

• Net finance costs increased to HK$331 million (+70% YoY) due to lower capitalised finance costs; taxation rose to HK$609 million (+35% YoY).

• Gearing ratio improved to 38.4% from 41.5% at year-end 2024.

Outlook and guidance

• Management maintains a positive long-term view on Hong Kong and Mainland China economies but expects near-term headwinds and market volatility.

• Focus remains on prudent landbanking, financial discipline, resilience, and sustainable growth amid economic repositioning in the Mainland.