Hang Lung Properties (00101) and Hang Lung Group (00010) announced results for the first half of the year, in which Hang Lung Properties recorded a net profit of 3.516 billion yuan as of the end of June, a 25% year-on-year decline, as no property sales were recorded during the period
And related impacts, the basic net profit of 2.229 billion yuan, a decrease of 3.9%. Earnings per share were 0.78 yuan, and the interim dividend was unchanged at 0.17 yuan per share. According to the management, due to the recent social events, the tenants of their shopping malls have reported that their business has been affected in some days in July. The actual number of strikes remains to be seen. There is no pressure on it.
Mainland lease profit of 2.2 billion super Hong Kong
The company emphasizes that it is expected that the existing properties will continue to provide solid natural growth, and a number of new properties will also add momentum to business growth. The sale of Hong Kong residential units will be based on market conditions, while gaining more value through the sale of non-core properties.
During the period, the total revenue was 4.204 billion yuan, all of which came from property leasing income. The mainland market accounted for 2.19 billion yuan or 52.1%, an increase of 0.9%. If it is calculated in RMB, it will increase by 7%; Hong Kong will account for 2.014 billion yuan or 47.9%. 3.4%. In respect of property sales, a semi-detached mansion in Lan Tong Road was sold in the first half of the year. It is expected to be accounted for in the second half of the year after the completion of the transaction. There are still 11 Lantang Road mansions and one Tai Kok Tsui Long Island. Duplex unit.
At the performance conference, Chairman Chen Qizong was obviously more ignorant than the past, and he did not make any personal comments or expressed support for any party’s remarks. Chief Executive Officer Lu Weibo said that there has been a recent slowdown in the retail market in Hong Kong. The Hong Kong people are somewhat uneasy and hope to restore peace as soon as possible.
The mall has a lease “no income”
Lu Weibo pointed out that the business growth of its Hong Kong shopping malls in the first half of the year was still good and the trend was stable. Only the tenants reflected that the retail performance of some days in July was affected. The Group expected that the impact could be minimized. There was no major pressure, and it was not retail. The amount has fallen sharply, but the growth rate is inferior to the previous one. It is still necessary to pay attention to the situation in this month and after August. However, it is believed that the income of investment properties in Hong Kong is stable in the long run. It is too early to say whether confidence in the luxury residential market will be affected.
Chen Qizong admits that it is difficult to predict whether Hong Kong property rental income will maintain a 3% growth in the future. The retail industry and the tourism industry are undeniably affected by the social turmoil. However, there is a lease in the shopping mall business to lock in rents, “no income”, but How much growth actually depends on market conditions.
The company has started two reconstruction projects in Hong Kong, of which Amoy Industrial Village is about to start development as a residential project, which is expected to be completed in 2022 or 2023. The North Point Electric Road Commercial Building is expected to be rebuilt into an investment property in 2022 and will be sold; The project paid the land price and the budget construction cost was over one billion yuan.
As for the sale of non-core properties, Lu Weibo said that after the sale of Lai Chi Kok Industrial Building in the first half of the year, it will pay attention to the market situation. If there is a “good price”, it does not rule out any possibility. In terms of mainland property leasing, Lu Weibo said that Shanghai’s overall property income increased by 4%, which was affected by the renovation of Ganghui Plaza’s Henglong Plaza; if the revenue of Hang Lung Plaza alone, it recorded an increase of 11%. Property income outside Shanghai rose by 14%, and it is believed that the growth trend will continue in the foreseeable future.