New World core profit fell 4.2% to 4.2%
New World Development (00017) announced its interim results ended the year-end with a base profit of 4,199 million yuan, down nearly 16% year-on-year. As a result of the sale of Kwai Chung Logistics Center under NWS (00659) Excluding the relevant factors, last year’s basic profit increased by about 14%, better than market expectations. Cheng Chih-kang, executive chairman and managing director, said the first home-based plan to help young people “get on the bus” will be implemented by the end of the year, involving both urban areas and the number of partners will also increase.
Net profit in the New World soared 1.6x to HK $ 11.27bn with EPS of HK $ 1.15 mainly due to a significant increase in the fair value of investment properties due to the occupation of K11 Atelier office building in Victoria Dockside and the increase in net foreign exchange gains. Interim interest 0.14 yuan per share, an increase of 7.7%.
Zheng Zhigang pointed out that during the period, attributable property sales in Hong Kong amounted to HK $ 5.1 billion and 51% of the sales target of HK $ 10 billion, mainly from Ao Tak Tung in Clear Water Bay, Tai Wan in Sai Ying Pun, THE PARKVILLE in Tuen Mun, Park Plaza in Yuen Long, Bay and so on. As of this month, sales have exceeded 7 billion yuan, and are confident to reach the annual sales target of 10 billion yuan. The number of residential units for sale is about 890. FLEUR PAVILIA, North Point 524, Yu Wentian Waterloo Road project and To Kwa Wan Rural Road project, providing a total of more than 1600 units.
“New Generation First Home” add food at the end
The New World earlier set aside 15 units for the first generation project of the new generation for the PARK in Tuen Mun. It sold out within half an hour after it was put on sale on the 11th of this month. Cheng Chih-kang revealed that the first batch of planned responses has laid a solid foundation and will be launched by the end of this year Waterloo project (240,000 contracts with Henderson Land (00012) and 240 projects of Sheung Heung Road to To Kwa Wan (about 300 partners involved with URA) participated in the second batch of projects with some units providing the first batch Set concessions. He said that if there were more units to be offered for first-home purchase, he said he did not mind adding more units. The second batch must have been larger than the first batch of 15. More details could be disclosed in the course of September’s performance.
Mr Cheng Zhiguang maintained cautious optimism about the property market in Hong Kong this year. It is estimated that under the support of demand for self-employment, property prices may rise another 8% to 10% over last year.
As of the end of last year, New World owns a land reserve of approximately 10.66 million sq ft in Hong Kong, which is ready for immediate development. Of which, the total floor space of residential quarters is about 4.8 million sq ft. In the meantime, there are about 16.98 million square feet of agricultural land to be changed for use in the New Territories. Mr Cheng said that at present, 3 million square feet of farmland are being rezoned, mainly in Yuen Long. There is also a larger agricultural land in Sai Kung.
HNA earlier transferred two Kai Tak land to the hectares, floor price per square foot reached 15,000 yuan. Asked whether he had negotiated with HNA to take over the remaining two plots, Mr Cheng said there was no direct contact with HNA. For the transaction prices of the two Kai Tak plots earlier, it was believed to be a commercial decision and he agreed that the development prospects of the district are impressive However, the New World in the past bid less Kai Tak land. He emphasized that the New World will rationally buy land. At present, the strategy is not in urgent need of a large amount of land and will be sold at a reasonable price and will not follow suit.