Midland Holdings (1200) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 41% YoY to HK$3,318.8m; profit attributable to equity holders increased 346% to HK$174.1m.

• Results benefited from Hong Kong residential-market activity, stable market share, efficiency gains and improved Mainland operations.

Financial highlights

• Operating profit was HK$214.5m vs HK$59.2m; profit before tax was HK$206.4m vs HK$52.2m.

• Basic and diluted EPS were HK24.27 cents vs HK5.45 cents; total comprehensive income was HK$182.1m vs HK$49.5m.

• Property agency revenue after rebates was HK$1,792.5m vs HK$1,582.2m; rebates rose to HK$1,519.6m from HK$764.6m.

• Tax expense increased to HK$32.3m from HK$13.1m; net impairment losses on financial assets were HK$13.4m vs HK$2.1m.

Outlook and guidance

• Local demand may improve if interest rates are cut more than once before end-2024; elevated rates and uncertainty continue to restrain buyers.

• Mainland policy support announced in May and at the July third plenum is expected to benefit Hong Kong and Mainland economies, though effects may take time.

• Rental demand is expected to benefit from non-local students and talent; strategy includes popular districts among Mainland buyers, cross-border cooperation and productivity improvements.