Kerry Properties (683) H1 2026 earnings summary

Executive summary

• Profit attributable to shareholders rose 20% year-over-year to HK$735 million, while underlying profit declined 9% to HK$782 million due to lower interest cost capitalisation, reduced development property revenue recognition, and timing of property handovers in Hong Kong.

• Combined revenue fell 33% year-over-year to HK$6,671 million, mainly due to a 53% decline in development property revenue in Hong Kong; rental and hotel revenues grew modestly.

• Interim dividend per share maintained at HK$0.40.

Financial highlights

• Gross margin improved to 39% from 27% year-over-year, reflecting a more favourable product mix in development properties.

• EPS increased 20% to HK$0.51; underlying/adjusted EPS down 9% to HK$0.54.

• Net finance costs rose to HK$403 million due to lower capitalisation, despite a 19% drop in gross finance costs.

• Net debt decreased to HK$37,826 million from HK$39,700 million at year-end 2025.

• Gearing ratio improved to 31.3% from 33.3% at year-end 2025.

Outlook and guidance

• Management remains positive on long-term prospects in both Hong Kong and the Chinese Mainland, with opportunities in sustainable urban development.

• Short- and medium-term caution due to macroeconomic, interest rate, capital control, and geopolitical headwinds.

• Continued focus on prudent landbanking, asset enhancement, health, resiliency, and sustainability initiatives.