The Wharf (Holdings) (4) H2 2025 earnings summary

Executive summary

• Group profit increased by HK$3.3 billion, rebounding due to significantly reduced property revaluation deficits and impairment provisions compared to the previous year.

• Underlying net profit surged 47% year-over-year to HK$4,104 million, supported by lower development property provisions and borrowing costs.

• Net cash position achieved by year-end after disposing HK$9.7 billion in long-term equity investments, eliminating net debt for the first time since 2017.

• Net asset value per share increased 7% to HK$48.01.

• Dividend per share maintained at HK$0.40.

Financial highlights

• Underlying net profit increased by 47% year-over-year to HK$4,104 million, mainly due to lower DP provisions and borrowing costs.

• Group revenue declined 9% year-over-year to HK$10,997 million; operating profit fell 10% to HK$5,068 million.

• Dividend payout ratio was 30% of underlying net profit.

• Net cash position (excluding Modern Terminals debt) was HK$4.5 billion at year-end.

• Average interest cost reduced to 2.5%.

Outlook and guidance

• Hong Kong property market is regaining confidence, though interest rate volatility and inventory overhang remain risks.

• Mainland China market faces tepid recovery, weak consumer sentiment, and overcapacity.

• Global risks include geopolitical tensions, trade disruptions, and rapid technological change.

• The group will continue prudent financial management and leverage core strengths to sustain stable performance.