Midland Holdings (1200) Q2 2023 earnings summary

Executive summary

• H1 2023 revenue rose 37% YoY to HK$2,353.952m; profit attributable to equity holders was HK$39.059m versus a HK$231.980m loss a year earlier.

• Turnaround reflected Hong Kong residential agency recovery, market-share gains and streamlining; Midland Realty and Hong Kong Property returned to profitability.

Financial highlights

• Revenue was HK$2,353.952m versus HK$1,715.163m; operating profit was HK$59.163m versus an operating loss of HK$246.827m.

• Profit before tax was HK$52.206m versus a HK$251.741m loss; attributable net profit was HK$39.059m versus a HK$231.980m loss.

• Basic and diluted EPS were HK5.45 cents versus a loss of HK32.35 cents; total comprehensive income was HK$49.538m versus a loss of HK$228.574m.

Outlook and guidance

• Recovery prospects remained uneven; lower rates could boost buyer spending and amplify stamp-duty relief and higher loan-to-value limits, while further Mainland stimulus could support demand.

• Talent inflows are expected to support residential rentals first and potentially home purchases over time; management aims to compete for further market share.

• Hong Kong new-home registrations rose 26.8% QoQ in Q2, but housing activity slowed after Q1 amid demand pull-forward and a weaker-than-expected Mainland recovery.