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% year-over-year to HK$10,247 million, reflecting realized fair value gains and a smaller decrease in investment property values.

• Interim dividend declared at HK$0.98 per share, up 3.2% from last year, payable on 19 March 2026.

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

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

Financial highlights

• Total operating profit for H1 FY2026 was HK$16,540 million, up 14.3% year-over-year.

• Underlying EPS was HK$4.21 (up from HK$3.61); reported EPS was HK$3.54 (up from HK$2.60).

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

• Shareholders’ equity reached HK$621.7 billion as of 31 Dec 2025.

• Net debt reduced to HK$83,646 million, with gearing ratio improved to 13.5% from 15.1% in June 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, with multiple new project launches planned.

• Office and retail portfolios expected to benefit from high occupancy and limited new supply.