Sino Land Company (83) H1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders was HK$1,820 million, down 30.4% year-over-year for the six months ended 31 December 2024, with underlying profit at HK$2,241 million, down from HK$2,945 million.

• Revenue declined 21.7% year-over-year to HK$3,854 million, mainly due to lower property sales.

• Earnings per share was HK$0.21, with underlying EPS at HK$0.26, both down year-over-year.

• Interim dividend per share maintained at HK$0.15, with a scrip option available.

• Strong net cash position of HK$45,880 million and shareholders' funds of HK$166,588 million as at 31 December 2024.

Financial highlights

• Gross profit was HK$1,653 million, compared to HK$1,921 million in the prior year.

• Net asset value per share was HK$18.48 as at 31 December 2024, down from HK$19.17 as at 30 June 2024.

• Net cash increased by HK$295 million since 30 June 2024.

• Total assets stood at HK$180,996 million.

• Gross profit margin for property sales dropped to 6.5% from 12.7% a year ago.

Outlook and guidance

• Pipeline of new projects to be launched, including ONE CENTRAL PLACE and Grand Mayfair III, with five new projects in 2025 and pre-sale consents obtained for most.

• Approximately HK$11.3 billion in attributable contracted sales not yet recognized, with HK$9.1 billion expected in 2H FY2024/25.

• Removal of demand-side management measures and interest rate cuts have improved buyer sentiment and housing demand.

• Government talent admission schemes and increased student quotas expected to support population growth and economic activity.

• Persistent pressure expected in the office rental segment due to oversupply and high vacancy.