Kerry Properties (683) H2 2024 earnings summary

Executive summary

• Combined revenue rose 18% year-over-year to HK$21,361 million, driven by a 33% increase in development property revenue, especially from Hong Kong projects.

• Underlying profit increased 25% to HK$3,973 million, but profit attributable to shareholders fell 75% to HK$808 million due to one-off provisions and fair value losses.

• Adjusted EPS based on underlying profit was HK$2.74 (up 25%), while reported EPS dropped to HK$0.56.

• Final dividend maintained at HK$0.95 per share, with total annual dividend at HK$1.35 per share.

Financial highlights

• Combined revenue: HK$21,361 million (+18% year-over-year); development properties: HK$13,830 million (+33%); investment properties and hotels: HK$7,531 million (-2%).

• Underlying profit: HK$3,973 million (+25%); profit attributable to shareholders: HK$808 million (-75%).

• Gross margin declined to 32% (from 44%) due to product mix.

• Contracted sales: HK$12,605 million (-10%), with Hong Kong up 195% and Mainland down 77%.

• Gearing ratio increased to 41.5% (from 34.1%) due to higher gross debt.

Outlook and guidance

• Long-term optimism for Mainland urbanisation and Hong Kong’s role as a financial gateway, but short-term visibility remains low amid weak confidence and high US interest rates.

• Focus remains on deleveraging, stable dividends, and prudent landbanking.