Sun Hung Kai Properties (16) H1 2026 earnings summary

Executive summary

• Underlying profit attributable to shareholders rose 17% year-over-year to HK$12,213 million for the six months ended 31 December 2025, driven by higher property sales and lower finance costs; reported profit increased 36.2% to HK$10,247 million.

• Basic underlying EPS grew to HK$4.21; reported EPS was HK$3.54.

• Interim dividend declared at HK$0.98 per share, up 3%, payable on 19 March 2026.

• Strong financial position with net debt reduced to HK$83,646 million and gearing ratio lowered to 13.5%.

• S&P Global upgraded outlook to stable, maintaining A+ rating; Moody’s affirmed A1/stable.

Financial highlights

• Group revenue grew 32% year-over-year to HK$52,705 million, with property development revenue nearly doubling.

• Segment operating profit rose to HK$16,540 million, with development profit at HK$4,885 million and recurring profit at HK$11,655 million.

• Net finance costs decreased by 44% year-over-year to HK$810 million, with average borrowing cost down to 3.0%.

• Net gearing ratio improved to 13.5% (from 15.1% at June 2025), and interest cover increased to 8.7x.

• Shareholders’ equity reached HK$621.7 billion as of December 2025.

Outlook and guidance

• Plans to launch multiple new residential projects in Hong Kong and Mainland China over the next 10 months.

• Focus on sustaining high occupancy and stable rental income, leveraging digital and green initiatives.

• Positive outlook for Hong Kong and Mainland property markets, supported by policy measures, lower rates, and economic resilience.

• FY2026 sales target maintained at HK$30 billion.

• Anticipates further margin improvement from upcoming projects with lower land costs.