Wharf’s performance regressed

Wharf (00004) announced its interim results as of the end of June. The revenue for the period was 7.823 billion yuan, down more than 54% year-on-year. This was mainly due to the listing of Wharf Real Estate (01997) at the end of last year. Interest was 25 cents per share, down 61% year-on-year. Excluding the impact of the spin-off, the adjusted core earnings fell 9.49% to $2.527 billion as the performance of mainland sales was affected by the government’s price limit measures. Chairman Wu Tianhai said that the price limit measures in different cities in the Mainland are different. Beijing, Shanghai and other places are stricter. The government’s price is lower than the market price. It is an unacceptable level. He believes that the measures make the mainland property market more unhealthy; In the first half of the year, it was mainly sold in Suzhou and Wuxi.

Eliminate the impact of the spin-off, net profit reduced by 9%

Wu Tianhai believes that developers with the strength of holding goods will not be eager to sell buildings. The group will wait until the government’s price limit changes back to a reasonable level before the local government has some signs of relaxation. For example, the group has obtained a project in Shanghai. A more reasonable pre-sale certificate will be pushed in the next few weeks. The contracted sales of the mainland business in the first half of the year fell 36% to 7.2 billion yuan, far from the annual sales target of 22 billion yuan. Wu Tianhai expects sales in the second half of the year to be better than the first half of the year. I believe that it can catch up with the target.

As for the land purchase plan, Wu Tianhai said that the Group has actively bought land in the Mainland since the second half of last year. In the first half of the year, it bought 10 plots of land in the Mainland. The total consideration was 14 billion yuan. At present, it needs to be digested first. The speed of sales. He noticed that the mainland’s funds are tightening, and the land competition is not as intense as in the past two years. I believe that the Group has a great opportunity to buy good projects.

The group disclosed earlier that it invested 25.5 billion yuan in listed stocks in the second half of last year. Wu Tianhai said that the current market value of handheld stocks is about 29 billion yuan, emphasizing that all of them are long-term investments, which have not been sold in the past six months. Asked about the impact of interest rate hikes on the real estate industry in Hong Kong, he pointed out that although interest rate hikes are not a positive factor for the industry, the market has certain expectations for interest rate hikes. Unless the rate hike exceeds expectations, the impact on the industry will be limited.