Sun Hung Kai Properties Limited (SHK PPT, 00016) released its Interim Report for FY 2025/26.
Financial Highlights (six months ended 31 Dec 2025) • Revenue: HK$52.71 billion, up 32.0% year-on-year (YoY). • Reported profit attributable to shareholders: HK$10.25 billion, +36.2% YoY. • Underlying profit (excluding investment-property revaluation): HK$12.21 billion, +16.7% YoY. • Basic reported EPS: HK$3.54 (2024: HK$2.60). • Interim dividend: HK$0.98 per share, +3.2% YoY, payable 19 Mar 2026.
Segment Performance (including JVs & associates) • Property Development revenue almost doubled to HK$32.36 billion; development profit rose to HK$4.89 billion (2024: HK$2.51 billion), buoyed by Cullinan Sky and SIERRA SEA in Hong Kong and Hangzhou IFC sales on the Mainland. • Property Rental revenue held at HK$12.29 billion; net rental income slipped 0.6% to HK$8.95 billion, reflecting flat Hong Kong retail rents and softer Mainland offices. • Hotels posted 3% revenue growth to HK$2.78 billion; operating profit improved to HK$0.43 billion. • SmarTone telecom revenue increased 2% to HK$3.56 billion; operating profit fell 7% to HK$0.39 billion due to a prior-year disposal gain. • Transport infrastructure & logistics revenue declined 8% to HK$4.00 billion after the Route 3 franchise expiry; operating profit dropped 34% to HK$0.57 billion. • Data-centre unit SUNeVision lifted revenue 3% to HK$1.51 billion; operating profit rose 2% to HK$0.76 billion.
Balance Sheet & Cash Flow • Net debt decreased to HK$83.65 billion (30 Jun 2025: HK$93.30 billion); net gearing improved to 13.5% (30 Jun 2025: 15.1%). • Interest cover strengthened to 8.7 times (2024: 5.0 times); average borrowing cost fell to 3.0% (2024: 4.0%). • Total cash and deposits: HK$19.53 billion. • Undrawn committed banking facilities remain substantial; gross borrowings stood at HK$103.18 billion with 62% maturing beyond two years.
Operational Updates • Hong Kong land bank: 57.3 million sq ft; Mainland land bank: 64.6 million sq ft. • Hong Kong contracted property sales (attributable): HK$17.40 billion in 1H; Mainland contracted sales: RMB1.30 billion. • Attributable contracted sales not yet booked: HK$26.30 billion (HK$22.20 billion Hong Kong, HK$4.10 billion Mainland). • Major completions included 2.5 million sq ft of GFA in Hong Kong—notably Cullinan Sky, SIERRA SEA and Scramble Hill.
Dividend & Key Dates • Register of members closes 11–13 Mar 2026 (both days inclusive). • Interim dividend of HK$0.98 per share payable 19 Mar 2026.
Governance & Outlook • S&P raised outlook to “A+ (stable)” in Sep 2025; Moody’s maintained “A1 (stable)”. • Board confirms compliance with Corporate Governance Code provisions; no share repurchases during the period. • Chairman Raymond Kwok signals continued focus on land replenishment, project launches and disciplined financial management amid macro uncertainties.
Auditor Review • Deloitte Touche Tohmatsu reviewed the interim financial statements and issued an unqualified conclusion.
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