Henderson Land Half-Year Profit Surges 41%, Plans 8 New HK Projects
HK01 · 1 SOURCESabout 1 hour ago2 MIN
Summary
Henderson Land Development reported strong first-half 2024 results, with net profit attributable to shareholders reaching HK$4.09 billion, representing a 41% year-on-year increase . The group's revenue surged 80% year-on-year to HK$17.2 billion, while operating profit jumped 79% to HK$5.02 billion . The board declared an interim dividend of HK$0.50 per share, unchanged from the same period last year .
Key Points
- Hong Kong property development became the primary profit driver, with attributable pre-tax profit reaching approximately HK$3.3 billion compared to just HK$310 million in H1 2023, boosted by about HK$1.57 billion in land resumption compensation from the New Territories .
- Sales of residential projects including The Headroom in Hung Hom, The Reach in Ma Tau Kok, 1 Mody in Ma Tau Chung, and Victoria Harbor in Kai Tak performed strongly, with The Headroom selling over 90% of its units by end of June, while the first three launches of 468 units sold out on their opening days .
- The group achieved HK$18.1 billion in attributable contract sales in Hong Kong during H1, a surge of 188% year-on-year, with unrecognized attributable sales of HK$17.1 billion pending recognition .
- For H2, Henderson Land plans to launch eight new development projects offering approximately 3,400 attributable residential units spanning about 1.7 million square feet of residential gross floor area .
- Rental performance remained stable in Hong Kong, with attributable rent revenue rising 3% to HK$3.52 billion and an average occupancy rate of 94% across major investment properties, while Mainland rental income fell 6% amid market oversupply .
Why It Matters
The robust rebound in Henderson Land's property development segment signals renewed confidence in Hong Kong's residential market after a prolonged downturn, with the developer's strong H1 sales and extensive land bank of 38.4 million square feet in the New Territories positioning it well for sustained growth. The group's improved financial metrics, including a reduced net debt of HK$58.4 billion and a stronger interest coverage ratio of 3.22 times, provide it with greater flexibility to pursue urban renewal and development opportunities amid economic uncertainties.
The robust rebound in Henderson Land's property development segment signals renewed confidence in Hong Kong's residential market after a prolonged downturn, with the developer's strong H1 sales and extensive land bank of 38.4 million square feet in the New Territories positioning it well for sustained growth. The group's improved financial metrics, including a reduced net debt of HK$58.4 billion and a stronger interest coverage ratio of 3.22 times, provide it with greater flexibility to pursue urban renewal and development opportunities amid economic uncertainties.