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

Executive summary

• Group profit rebounded to HKD 3.3 billion, driven by significantly reduced property revaluation deficits and impairment provisions totaling HKD 3.5 billion, compared to prior years.

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

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

• The group ended the year net cash positive, following a HKD 9.7 billion equity investment disposal.

• Dividend per share maintained at HKD 0.40.

Financial highlights

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

• Underlying net profit rose 47% to HKD 4,104 million, mainly from reduced mainland DP provisions and lower borrowing costs.

• Attributable IP revaluation deficit after tax narrowed to HKD 3,641 million from HKD 5,990 million.

• Dividend per share remained at HKD 0.40, with a payout ratio of 30% of underlying net profit.

• Net cash position reached HKD 4.5 billion at year-end, excluding Modern Terminals' net debt.

Outlook and guidance

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

• Mainland China property market remains a concern, with weak consumer sentiment, overcapacity, and policy-driven fundamentals.

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

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