The Wharf (Holdings) (4) H2 2024 earnings summary

Executive summary

• Revenue declined 36% year-over-year to HK$12,115 million, with operating profit down 18% to HK$5,644 million, mainly due to weaker Mainland China development properties.

• Underlying net profit dropped 22% to HK$2,798 million, while the group reported a net loss attributable to shareholders of HK$3,224 million, driven by significant impairment provisions and a HK$5,990 million investment property revaluation deficit.

• Gearing ratio improved to 5%, with net debt at HK$7.1 billion and strong liquidity from listed investments.

• Dividend per share for 2024 maintained at HK$0.40.

Financial highlights

• Investment property segment revenue declined 4% to HK$4,644 million; operating profit down 6% to HK$3,026 million.

• Development properties revenue plunged 74% to HK$2,254 million; operating profit down 61% to HK$466 million.

• Hotels revenue rose 1% to HK$617 million, but operating profit fell 90% to HK$11 million.

• Logistics revenue decreased 7% to HK$2,205 million; operating profit down 17% to HK$315 million.

• Listed investments provided HK$1.9 billion dividend income in 2024.

Outlook and guidance

• Economic volatility expected due to trade wars, geopolitical tensions, and US Fed rate trajectory.

• Mainland China awaits effects of fiscal support for property sector; Hong Kong property market recovery hinges on economic improvement.

• Focus remains on prudent financial management and core competencies amid market headwinds.