Hang Lung Properties’ basic net profit fell 26% last year, but did not abandon the Hong Kong market

Hang Lung Properties’ basic net profit fell 26% last year, but did not abandon the Hong Kong market. Chen Qizong: It’s hard to sink in the long run.

Hang Lung Properties (00101) announced its full-year results as of the end of last year. During the period, it recorded a net profit of 8.078 billion yuan, down 0.6% year-on-year. Excluding the revaluation gains from investment properties, the basic net profit was 4.093 billion yuan, a drop of nearly 26%. Earnings per share were 1.8 yuan, and the final dividend was maintained at 0.58 yuan per share. The total dividend for the year was 0.75 yuan per share. During the period, the revenue was 9.408 billion yuan, a decrease of nearly 16% year-on-year. Among them, property leasing income was 8.181 billion yuan, up 5.2%, and property sales revenue was down 64.1% to 1.227 billion yuan.

Property sales inserted 64% interest 58 cents

Chief Executive Officer Lu Weibo stressed that the company has not given up the development of property in Hong Kong. However, it has only failed to win the bid in the past few years. It may be different from other developers in pricing, and it is not bearish. He pointed out that last year, nine singapore bay units (226 gangs sold in 2017) and three blue pool avenues (one for sale in 2017) were sold. There were only one group of Long Beach and 12 Lantang Road mansions. A market value of approximately $3.6 billion will ensure that the selling price meets market demand and the company’s objectives.

Hang Lung holds an 85% title to the No. 4 fire in Amoy Industrial Estate, Ngau Tau Kok Industrial Building in mid-2016. The company applied for a strong redevelopment in December 2017. Lu Weiba expects the Lands Tribunal to announce in one or two months. As a result, the floor was only 179,000 square feet and was initially proposed to be built as a residence.

Regarding the prospects of Hong Kong’s property market, Chairman Chen Qizong said that the Hong Kong property market is unlikely to be a long-term problem. Due to insufficient land supply, there are still a large number of mainlanders who are interested in coming to Hong Kong to purchase property. “It is difficult to sink in the long run” and believe that the government will gradually relax in the future. Mainlanders’ restrictions on home ownership. He revealed that one or two of its acquisition projects are dealing with technical issues, which are not large enough and are not yet ready for publication.

Trade wars are difficult to stop luxury consumption in the Mainland

In terms of retail sales in the Mainland, Lu Weibo pointed out that overall consumption has slowed down, but this month, luxury goods consumption is still strong. As luxury goods begin to cut prices, the mainland restricts private overseas purchasing activities, and strict investigation of inbound luxury goods tax evasion can support domestic luxury goods. Consumption, coupled with the depreciation of the renminbi, believes that the consumption power in the Mainland will continue to be strong. Chen Qizong stressed that the mainland luxury goods market is not affected by the Sino-US trade war, and the growth is very strong. It is expected that the company’s property leasing business will start to grow significantly in 2020.

As of the end of last year, the company’s total investment property value was 136.676 billion yuan, and the development of investment properties including Kunming, Wuhan and Hangzhou projects, as well as the remaining development period of Shenyang and Wuxi projects, with a total value of 31.186 billion yuan. The total floor area of ​​Kunming Henglong Plaza is 432,000 square meters. The shopping malls and office buildings are planned to open in the second half of this year. The total floor area of ​​Wuhan Henglong Plaza is 460,000 square meters, which will be completed in phases from 2020. Last year, it invested RMB 10.7 billion. The land of Hangzhou was completed in phases in 2024.

Hang Lung Properties saw a high of 17 yuan yesterday, a 2% increase, a record high of over 7 months, and closed at 16.84 yuan, still rising 1.1%, with a turnover of 166 million yuan. The parent company, Hang Lung Group (00010), closed at 23 yuan, up 2.7%.