The Wharf (Holdings) (4) H1 2025 earnings summary

Executive summary

• Underlying net profit rose 3% year-over-year to HK$2,035 million, with profit attributable to shareholders at HK$535 million, reversing a loss last year, aided by a smaller investment property revaluation deficit.

• Interim dividend maintained at HK$0.20 per share, payout ratio 30%, totaling HK$611 million.

• Revenue declined 19% to HK$5,669 million and operating profit fell 14% to HK$2,657 million, mainly due to lower Mainland development property recognition and investment property revaluation deficit.

• Prudent balance sheet and healthy liquidity maintained, with low gearing ratio and proactive capital management.

Financial highlights

• Net debt at HK$6.5 billion, gearing ratio at 4.4%, all or nearly all debt denominated in renminbi.

• Average interest cost reduced to 2.4%; interest cover at 13.4 times.

• Over 60% of total assets in premium properties in Hong Kong and Mainland China; total assets at HK$198.6 billion as of June 2025.

• Shareholders’ equity up 5% to HK$143.3 billion; long-term investments up 15% to HK$48.4 billion.

• Basic EPS at HK$0.18, compared to loss per share of HK$0.86 last year.

Outlook and guidance

• External environment remains complex with geopolitical, trade, and economic uncertainties likely to fuel volatility.

• Mainland China property market faces persistent oversupply, weak confidence, and recovery depends on government stimulus.

• Hong Kong property market outlook hinges on interest rates, economic recovery, and gradual price stabilization.

• Group will stay vigilant and adapt to evolving market conditions, focusing on monetizing existing assets.

• Cargo throughput in Hong Kong ports expected to remain soft in H2 after a non-recurrent H1 boost.