导 语：李兆基用近百年的实践证明，真正的商业传奇，在于将个人财富融入国家发展，用企业力量推动社会进步。 97岁的李兆基逝世了，但他这一生过得很精彩！ 揣着1000元钱的李兆基， 勇闯香港！ 以下文章来源于财世界 ，作者财世界编辑部 财世界 . 独特视角，深度观察。 作 者 | 财世界编辑部 来源 | 财世界 李兆基的家世不普通。 1928年，李兆基出生于广东顺德的一个商贾世家，彼时，他的父亲李介甫已经拥有天宝荣金铺和永生银号两间门店，在黄金、汇兑和外币买卖生意 领域打下了一片天地。 优越的家庭环境，让李兆基从小就接触到了商业的运作，6岁时，他便被父亲安排进家里的商铺学习做生意，这一经历，成为他商业启蒙的重要开 端。 12岁时，他已经熟练掌握了看金、化金、熔金的核心技术及知识，成为天宝荣金铺的头柜，在顺德当地，他是少有的金铺奇才。 15岁那年，父亲因长驻广州湾拓展生意，将顺德的"天宝荣金铺"和"永生银号"都交予李兆基掌管。 1948年，年仅20岁的李兆基看到了在香港的机会，于是怀揣着父亲给的1000元钱，毅然决然地只身前往香港闯荡。 李兆基毅然决定投身房地产行业。1958年，他与冯景禧、郭得胜等8人合股成立了永 ...

3月17日，据恒基兆业地产官网发布消息称，"恒基兆业地产有限公司沉痛宣布集团创办人李兆基大紫荆 勋贤，痛于今天黄昏，在家人陪伴下安详与世长辞，积闰享寿九十七岁。" 与多数白手起家的商人不同，李兆基一开始就站在较高的起点上。他是金铺神童，也是地产大佬，还 是"亚洲股神"，他的一生堪称一部跌宕起伏的商业传奇。 李兆基出生于1928年，是广东顺德人。因为在家中排行第四，所以被港人称为"四叔"。 李兆基的父亲本身就是个商人，经营着两间门店，主营黄金、汇兑、外币买卖生意，父亲为了他以后能 够更好地参与管理家业，6岁就把李兆基安排进家里的金铺开始学习做生意了。12岁时，李兆基已熟练掌 握看金、化金、熔金的本领。15岁时，父亲因长驻广州湾生意，于是将顺德的"天宝荣金铺"和"永生银 号"都交予李兆基掌管。小小年纪的他，是当时顺德无人不知的神童。 有"四叔"之称的香港地产富豪、恒基兆业地产创始人李兆基的传奇一生落幕。 6岁进金铺15岁掌家族生意 在管理家族店铺期间，一个偶然的机会，李兆基发现店里请来的炼金师傅在悄悄"偷金"，于是赶紧报告 父亲，建议父亲要警告这个人。而父亲却要他打住话题，不要再讲。理由是，他早就知道师傅"偷金" ...

Financial Performance - For the six months ended June 30, 2024, the group's attributable underlying profit was HKD 5.441 billion, a decrease of HKD 632 million or 10% compared to HKD 6.073 billion in the same period last year[3]. - The basic earnings per share for the period was HKD 1.12, down from HKD 1.25 in the previous year[3]. - The attributable profit after accounting for fair value losses was HKD 3.174 billion, a decrease of HKD 2.783 billion or 47% from HKD 5.957 billion in the previous year[3]. - The company's profit for the six months ended June 30, 2024, was HKD 3,985 million, a decrease of 34.5% compared to HKD 6,122 million for the same period in 2023[111]. - The company's profit attributable to shareholders for the six months ended June 30, 2024, was HKD 3,174 million, a decrease of 46.3% compared to HKD 5,957 million for the same period in 2023[135]. - The group's financing costs for the six months ended June 30, 2024, were HKD 820 million, compared to HKD 905 million in the same period of 2023[110]. - The group reported a post-tax profit of HKD 159.2 million, compared to a post-tax loss of HKD 28.4 million in the same period last year[66]. Revenue and Sales - The group’s total rental income from property leasing was HKD 4.446 billion, an increase of 2% from HKD 4.367 billion in the previous year[2]. - The group’s basic announced earnings per share was HKD 0.66, down from HKD 1.23 in the previous year[3]. - The group's attributable revenue from property development in Hong Kong increased by 14% year-on-year to approximately HKD 4.917 billion[5]. - The total contract sales amount for self-owned properties in Hong Kong reached approximately HKD 8.953 billion, representing a 33% increase compared to the same period last year[5]. - Total revenue for the six months ended June 30, 2024, was HKD 11,762 million, an increase of 14.4% compared to HKD 10,278 million in the same period of 2023[126]. - The total revenue from property sales in Hong Kong for the six months ended June 30, 2024, was HKD 4,927 million, an increase of 15% compared to HKD 4,274 million in the same period of 2023[79]. - The total revenue from property leasing in Hong Kong for the six months ended June 30, 2024, was HKD 2,453 million, a slight increase of 2% from HKD 2,405 million in the same period of 2023[86]. Property Development and Investment - The group recorded a fair value loss of HKD 22.67 billion on completed and development investment properties, compared to a loss of HKD 1.16 billion in the previous year[3]. - The group has 12.6 million square feet of total floor area across various development projects, including 4.1 million square feet in New Territories[8]. - The group has acquired over 2.8 million square feet of self-owned floor area for urban redevelopment projects, with an additional 400,000 square feet planned for sale in the second half of 2024[6]. - The group has ongoing urban redevelopment projects with a total expected self-owned floor area of approximately 1.83 million square feet upon completion, contingent on acquiring all ownership rights[22]. - The group purchased land in Central for a total floor area of 1.6 million square feet, with completion expected in Q4 2026 and Q4 2032, including over 300,000 square feet of public green space[24]. - The group has a total of 246,021 square feet of land area purchased in various projects, with a total expected self-owned floor area of 1,929,227 square feet[20]. Dividends and Shareholder Returns - The group announced an interim dividend of HKD 0.50 per share, unchanged from the previous year[3]. - The company declared dividends to shareholders amounting to HKD 6,294 million, consistent with the previous period[116]. Debt and Financing - The net debt to equity ratio improved to 22.0%, down from 22.6% in the previous year[2]. - The group maintained a net debt of HKD 71.02 billion, with a debt-to-equity ratio of 22.0%[68]. - The interest coverage ratio for the six months ended June 30, 2024, was 2.13 times, down from 2.65 times for the same period in 2023, primarily due to an increase in net interest expenses[100]. - The group issued guaranteed notes with a total face value of HKD 300,000,000 under its medium-term note program during the six months ended June 30, 2024[97]. - The group’s total liabilities increased to HKD 31,466 million as of June 30, 2024, compared to HKD 28,362 million on December 31, 2023[181]. Operational Efficiency and Cost Management - The company plans to streamline its store network and integrate loyalty programs with its parent company to enhance operational efficiency and improve sales performance[50]. - The overall revenue for the hotel and serviced apartment business grew to HKD 296.9 million, with EBITDA increasing by 15.1% to HKD 75.4 million compared to the previous year[52]. - The company reported a tax provision of HKD 394 million for the current period, compared to HKD 247 million in the same period last year, reflecting an increase of 59.5%[133]. Market Expansion and Future Plans - The company plans to continue expanding its market presence in mainland China, focusing on property development and sales[142]. - The company is actively exploring new strategies for market expansion and potential acquisitions to enhance its portfolio[142]. - The company plans to launch several projects in the second half of 2024, including a residential project at 8 Hillside Avenue with a total floor area of 472,067 square feet and 172 residential units[14]. Sustainability and Environmental Initiatives - The group has secured over HKD 50 billion in green and sustainable financing since 2020, including the first social responsibility loan for a property developer in Hong Kong[68]. - The group has been recognized for its commitment to environmental sustainability and service quality, receiving accolades such as the "Hong Kong Excellent Service Brand" award[36].

Investment Rating - The report maintains a **Neutral** rating for Henderson Land (12 HK) with a target price of HKD 23.84, implying a potential upside of 10.1% from the current price of HKD 21.65 [1][2] Core Views - Henderson Land's H1 2024 results were in line with expectations, with revenue increasing by 14.4% YoY to HKD 11.76 billion, driven by growth in other income. However, core net profit declined by 10.4% YoY to HKD 5.44 billion, mainly due to lower gross margins and a one-off accounting gain of HKD 1.6 billion from the Sunlight REIT in H1 2023 [1] - The interim dividend per share remained unchanged at HKD 0.5, with the core payout ratio increasing by 4.6 percentage points to 44.6% [1] - Property development gross margins are under pressure, with pre-tax profit declining by 44% YoY to HKD 500 million, excluding the impact of the sale of Grand Victoria East and one-off gains from agricultural land resumption. The company expects higher gross margins in H2 2024, with 60% of the HKD 20.8 billion in contracted sales to be recognized [1] - Rental income remained stable, increasing by 0.9% YoY to HKD 3.46 billion, with occupancy rates steady at 93%. The Henderson, a Grade A office building in Central, was completed in H1 2024 and is expected to contribute rental income in H2 2024, with a pre-leasing rate of 60%, significantly higher than another major new project in the area (<20%) [1] Financial Performance - Revenue is expected to grow by 25.2% YoY to HKD 34.53 billion in 2024E, with core net profit increasing by 12.0% YoY to HKD 10.87 billion. Core EPS is forecasted to grow by 12.0% YoY to HKD 2.25 in 2024E [3] - The company's net debt decreased by 3.9% to HKD 71.02 billion as of June 2024, with a net debt-to-equity ratio of 22.0%, down 0.6 percentage points from December 2023 [5] - Gross margins declined by 9.1 percentage points YoY to 35.5% in H1 2024, while EBIT margins fell by 14.5 percentage points to 29.9% [5] Property Development - Property development revenue increased by 14.0% YoY to HKD 4.94 billion in H1 2024, driven by the sale of Grand Victoria East. However, pre-tax profit declined by 44% YoY to HKD 500 million, excluding one-off gains [1] - The company plans to launch five residential projects in Hong Kong in H2 2024, totaling 960,000 sq. ft., with 56% located in Kai Tak. However, profitability is expected to be under pressure due to ample supply and price reductions in the area [1] Rental Business - Total rental income increased by 0.9% YoY to HKD 3.46 billion in H1 2024, with occupancy rates stable at 93%. The Henderson, a Grade A office building in Central, is expected to contribute rental income in H2 2024, with a pre-leasing rate of 60% [1] - The company's long-term rental growth is expected to come from The Henderson's further leasing and the Central Harbourfront project, which will be completed in phases from 2026 to 2032. However, rental levels and payback periods for these projects may be lower and longer than expected due to oversupply in the office market [1] Peer Comparison - Among Hong Kong property developers, Sun Hung Kai Properties (16 HK) and New World Development (17 HK) have Buy ratings with target prices of HKD 110.1 and HKD 15.8, implying potential upsides of 54.6% and 119.4%, respectively [6] - In the mainland property sector, Yuexiu Property (123 HK) and China Resources Land (1109 HK) have Buy ratings with target prices of HKD 6.6 and HKD 42.82, implying potential upsides of 57.1% and 94.6%, respectively [6]

Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2024, was HKD 54.44 billion, a decrease of HKD 6.32 billion or 10% compared to HKD 60.73 billion in the same period last year[3]. - Basic earnings per share for the period were HKD 1.12, down from HKD 1.25 in 2023[3]. - The group recorded a fair value loss of HKD 22.67 billion on investment properties, compared to a loss of HKD 1.16 billion in 2023[3]. - The interim dividend declared is HKD 0.50 per share, consistent with the previous year[3]. - The net profit attributable to shareholders decreased to HKD 3,174 million, down 46.3% from HKD 5,957 million year-on-year[69]. - The group reported a total tax expense of HKD 286 million for the six months ended June 30, 2024, compared to HKD 117 million in 2023, indicating a significant increase[89]. - The group reported a post-tax profit of HKD 159.2 million, compared to a post-tax loss of HKD 28.4 million in the same period last year[62]. - The group reported a net financing cost of HKD 579 million, a slight decrease from HKD 618 million in the previous year[68]. Revenue and Sales - The group's attributable revenue from property development in Hong Kong increased by 14% to approximately HKD 49.17 billion compared to the same period last year[5]. - The total contracted sales amount for self-owned properties in Hong Kong was approximately HKD 89.53 billion, an increase of 33% year-on-year[5]. - The revenue from property sales for the period is approximately RMB 2.588 billion (around HKD 2.851 billion), a decrease of 10% compared to the same period last year[39]. - The total self-owned contract sales amount to approximately RMB 1.827 billion, a significant decrease of 48% year-on-year, with a corresponding sales area of about 120,000 square feet, down 49%[39]. - The total revenue for the six months ended June 30, 2024, was HKD 11,762 million, representing a 14.5% increase from HKD 10,278 million in the same period last year[68]. - The property development revenue, including property sales, reached HKD 4,943 million, up from HKD 4,337 million, reflecting a growth of 14.0%[79]. - The overall revenue from the hotel and serviced apartment business increased by 11.1% to HKD 296.9 million, with EBITDA rising by 15.1% to HKD 75.4 million compared to the previous year[48]. Property Development and Projects - The company has 28 ongoing development projects with a total remaining saleable area of approximately 2,040,595 square feet, of which 1,455,491 square feet are residential units[9]. - The company plans to launch several residential projects, including "Belgravia Place" Phase 1, which sold all 138 units on the first day of sale[5]. - The company plans to launch several projects in the second half of 2024, including a residential project at 472,067 square feet with 172 units, and a mixed-use project at 1,205,061 square feet[13]. - The company is currently redeveloping two old properties, expected to provide approximately 900,000 square feet of self-owned floor area upon completion[14]. - The company has acquired 80% to 100% ownership in 24 urban redevelopment projects, with an estimated self-owned floor area of 1,134 square feet[16]. - The company has a total of 3,993,421 square feet of projected floor area from ongoing and future redevelopment projects[15]. - The company is actively pursuing market expansion through new projects and redevelopment strategies[14]. Land and Property Holdings - The company owns land reserves of approximately 23.5 million square feet as of June 30, 2024, including 11.1 million square feet of properties under development[22]. - The group holds approximately 45.1 million square feet of New Territories land, making it the developer with the largest land reserve in Hong Kong[25]. - The group expects to receive cash compensation of approximately HKD 3.9 billion for 3.5 million square feet of land in the Hung Shui Kiu/Xia Village development area, contributing to an estimated pre-tax profit of approximately HKD 3.1 billion for the fiscal year ending December 31, 2024[25]. - The company has acquired properties with a total expected self-occupied floor area of approximately 1,954,427 square feet from various redevelopment projects[19]. - The company has a significant portion of its land reserves, approximately 380,000 square feet, pending land premium agreements for development[22]. Rental Income and Occupancy - The total rental income attributable to the group for the six months ending June 30, 2024, increased by 3% to HKD 3.403 billion, while the pre-tax net rental income rose by 2% to HKD 2.512 billion[27]. - The average occupancy rate of the group's rental properties in Hong Kong was 93% as of June 30, 2024[27]. - The office property portfolio maintained a stable occupancy rate of approximately 90%, despite a challenging rental environment in Hong Kong[30]. - The group's retail property portfolio maintained stable occupancy rates, with some malls exceeding pre-pandemic traffic and tenant sales levels[29]. - The occupancy rate of "AIA Tower" in North Point remains above 90%, reflecting strong tenant relationships[30]. Financial Position and Debt - The group's net debt stood at HKD 71.02 billion, with a debt-to-equity ratio of 22.0%[64]. - The company’s total liabilities increased to HKD 137,898 million from HKD 138,316 million, a slight decrease of 0.3%[72]. - The company’s bank borrowings decreased significantly to HKD 12,421 million from HKD 24,500 million, a reduction of 49.3%[71]. - The group confirmed a gain of HKD 1,407,000,000 from the sale of a wholly-owned subsidiary, completed on January 28, 2024[151]. - The group recognized a gain of HKD 1,096,000,000 from the compensation for land recovery by the Hong Kong government, marking a significant increase from zero in the previous year[152]. Sustainability and Corporate Governance - The group has received preliminary platinum-level certification from BEAM Plus for its new construction projects, indicating a commitment to sustainability[23]. - The group received multiple awards for sustainable development, including the "Outstanding Sustainable Enterprise Award" in the Hong Kong ESG Green Development and Carbon Neutrality Awards[65]. - The group is committed to setting science-based net-zero emissions targets to meet the requirements of the Paris Agreement[65]. - The group has complied with the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules during the six months ended June 30, 2024[158]. Challenges and Market Conditions - For the six months ended June 30, 2024, Hang Fat reported a loss attributable to shareholders of HKD 69 million, compared to a loss of HKD 18 million in the same period last year, primarily due to a decline in retail sales caused by outbound travel and cross-border shopping trends[44]. - Citistore's total sales, including consignment and licensed counters, decreased by 13% year-on-year, with self-operated product sales dropping 10% to HKD 146 million and a gross margin decline to 31%[45]. - The company is reviewing store performance to streamline its network and improve operational efficiency amid a challenging retail environment[46]. - The company anticipates stable gas sales in Hong Kong for 2024, with further growth expected in the mainland's city gas and natural gas businesses[57].

Market Capitalization and Financial Performance - The market capitalization of Henderson Land Development Company Limited as of December 31, 2023, is HKD 116 billion, while the total market capitalization including subsidiaries and associates is approximately HKD 252 billion[12]. - The total market value of the company's listed subsidiaries and associates is approximately HKD 252 billion, indicating a robust investment strategy[12]. - For the fiscal year ending December 31, 2023, the company's revenue from property development was HKD 24,260 million, an increase of 4.0% from HKD 23,335 million in 2022[14]. - The company's pre-tax profit contribution from property development decreased by 22.6% to HKD 4,295 million, down from HKD 5,552 million in the previous year[14]. - The basic earnings attributable to shareholders for the year were HKD 9,706 million, a slight increase of 0.8% from HKD 9,629 million in 2022[16]. - The company reported a basic earnings per share of HKD 2.00, compared to HKD 1.99 in the previous year[16]. - The net debt to equity ratio improved to 22.6%, down from 24.1% in 2022, reflecting a decrease of 1.5 percentage points[14]. - The group reported a loss attributable to shareholders of HKD 72 million for the year ended December 31, 2023, compared to a profit of HKD 5 million in the previous year[64]. - The total debt of the group as of December 31, 2023, was HKD 95,492,000,000, an increase from HKD 90,381,000,000 in 2022[184]. Property Development and Sales - The company reported significant progress in property development projects in both Hong Kong and mainland China, contributing to its overall growth strategy[3]. - The group launched multiple residential projects this year, achieving over 90% sales for existing projects, including "Baker Circle" and "One Innovale" series[21]. - The total contract sales amount in Hong Kong for the year ending December 31, 2023, was approximately HKD 14.05 billion[21]. - The company has a total of 3,882 remaining residential units across various projects, with a total floor area of 2,111,924 square feet[26]. - The company plans to launch the sale of 7,254 residential units in 2024, with a total residential floor area of 3,446,642 square feet[28]. - The company has ongoing urban redevelopment projects with a total self-occupied floor area of approximately 183,000 square feet, contingent on acquiring full ownership[35]. - The company has identified several key areas for future growth, including the development of new residential and commercial projects[116]. Rental Income and Property Leasing - Total rental income from property leasing rose by 3.7% to HKD 8,843 million, compared to HKD 8,528 million in 2022[14]. - The net rental income before tax increased by 3.4% to HKD 6,422 million, up from HKD 6,212 million in the prior year[14]. - The average occupancy rate of the rental properties as of December 31, 2023, was 92%[42]. - The total area of self-owned rental properties expanded to approximately 990,000 square feet, with retail space accounting for 55% of the total[43]. - The overall property portfolio's occupancy rate was 93.1% as of December 31, 2023, with office and retail properties recording rental growth of 3.3% and 0.8%, respectively[86]. Sustainability and ESG Initiatives - The company has received multiple awards in 2023, including the Five-Star Rating from GRESB, recognizing it as a global industry leader in sustainability[9]. - Henderson Land Development aims to enhance its ESG (Environmental, Social, and Governance) performance, having received several awards for its sustainability initiatives in 2023[10]. - The group has adopted advanced technologies and materials, winning multiple awards including the "2023 Asia Property Awards" for various residential developments[50]. - The company has launched the "Carbon Label Pilot Program" in collaboration with Future Green Global, leading the industry in sustainability initiatives[200]. - Hong Kong and China Gas has been recognized as one of the top 1% ESG-rated companies in China by S&P Global, reflecting its commitment to sustainability[79]. Strategic Partnerships and Market Position - The company holds a 67.24% stake in Hong Kong and China Gas Company Limited as of December 31, 2023[13]. - The group has strategic partnerships with local developers to enhance market efficiency and development opportunities[55]. - The company is the largest shareholder in Hong Kong and China Gas Company, which provides a stable source of recurring income[156]. Challenges and Market Conditions - The real estate market in mainland China is currently in a consolidation phase, with a downward adjustment in property transactions despite government policy relaxations[53]. - The occupancy rate of "The Henderson" is expected to contribute to recurring revenue growth, further solidifying the group's position in the core business district[48]. - The group’s office property portfolio in Hong Kong has shown resilience with stable occupancy rates despite a high vacancy rate and significant future supply[46]. Future Development Plans - The company plans to distribute a final dividend of HKD 1.03 per share, maintaining the total dividend for the year at HKD 1.80 per share[19]. - The company is currently redeveloping two old properties, expected to provide approximately 900,000 square feet of self-owned floor area upon completion[29]. - The company has plans for a major development project in Central, expected to yield a total floor area of 1.6 million square feet, with completion anticipated in 2026 and 2032[37]. - The company is focused on expanding its property investment portfolio, with ongoing projects that align with market demand and sustainability goals[3]. Employee and Operational Insights - The group's total employee cost for the year ended December 31, 2023, was HKD 3,260,000,000, slightly up from HKD 3,254,000,000 in 2022[192]. - The total number of full-time employees as of December 31, 2023, was 9,835, a decrease from 9,950 in 2022[192].

Investment Rating - The report maintains a "Neutral" rating for the company with a target price of HKD 23.84, indicating a potential upside of 3.7% from the current price of HKD 23.00 [1][5]. Core Insights - The company's 2023 performance fell short of market expectations, with revenue increasing by 7.9% year-on-year to HKD 27.57 billion, primarily driven by moderate growth across various business lines. Core net profit remained relatively flat, rising by 0.8% to HKD 9.71 billion, but was 12% lower than Bloomberg consensus estimates. The net profit margin decreased by 2.5 percentage points to 35.2%, mainly due to a decline in development profit margin and increased net interest expenses [1][4]. - Property development profits declined, but sales performance was favorable post-policy adjustments. Property development revenue grew by 3.9% to HKD 15.21 billion, with approximately 96.5% generated from Hong Kong. The company plans to launch 13 residential projects in Hong Kong in 2024, totaling 181,000 square feet [1][4]. - Rental income remained stable, with total rental income increasing by 2.2% to HKD 6.88 billion. Future rental growth is expected from new projects, including The Henderson, which is set to complete in January 2024, and a large waterfront project in Central expected to be completed between 2027 and 2032 [1][4]. Financial Overview - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 27.57 billion, with a year-on-year growth of 7.9%. Core profit was HKD 9.71 billion, reflecting a slight increase of 0.8% [3][6]. - The company maintained a dividend of HKD 1.80 per share, with a core payout ratio of approximately 90% [1][4]. - The financial data indicates a projected revenue increase to HKD 34.53 billion in 2024, representing a growth rate of 25.2% [3][6].

Financial Performance - The group's profit attributable to shareholders for the year ended December 31, 2023, was HKD 9.706 billion, an increase of HKD 77 million or 0.8% compared to HKD 9.629 billion in the previous year[2]. - The basic earnings per share for the year was HKD 2.00, compared to HKD 1.99 in 2022[2]. - The group recorded a fair value loss of HKD 4.45 billion on investment properties, compared to HKD 3.9 billion in 2022[2]. - The total rental income attributable to the group increased by 4% to HKD 6.74 billion, while attributable pre-tax rental net income rose by 7% to HKD 4.91 billion[28]. - The net profit for the year was HKD 9,778 million, compared to HKD 9,503 million in the previous year, reflecting an increase of about 2.9%[73]. - The company reported a total revenue of HKD 27,570 million for the year ended December 31, 2023, an increase from HKD 25,551 million in 2022, representing a growth of approximately 7.9%[72]. - The total comprehensive income for the year was HKD 7,575 million, significantly up from HKD 1,843 million in the previous year[74]. Property Development - The total property sales in Hong Kong for the year amounted to approximately HKD 14.752 billion, a decrease of HKD 774 million from the previous year[5]. - The group expects a profit contribution of approximately HKD 1.407 billion from the sale of "Port Exchange" to be recognized in the 2024 fiscal year[5]. - The total area available for sale in 2024 is approximately 3.3 million square feet, including unsold units from major development projects[7]. - The company plans to launch 10 new projects in 2024, including Belgravia Place Phase 1 with 293,604 square feet and 714 residential units[13]. - The company has 28 ongoing development projects with a total remaining residential unit count of 3,882 and a total remaining usable area of 2,111,924 square feet[9]. - The group has an unrecognized property sales total of approximately HKD 9.418 billion as of December 31, 2023, with HKD 7.114 billion expected to be recognized in 2024[5]. Urban Redevelopment - The group has acquired over 240,000 square feet of self-owned floor area for redevelopment projects in urban areas[6]. - The group has two existing properties under redevelopment, expected to provide approximately 900,000 square feet of self-owned floor area upon completion[15]. - There are 22 newly acquired urban redevelopment projects, with 100% ownership in several projects, contributing an estimated future self-owned floor area of 785,371 square feet[18]. - The total estimated self-owned floor area from projects with 80% to 100% ownership is 1,553,426 square feet[20]. - The group has 29 ongoing urban redevelopment projects, with an expected self-owned floor area of approximately 183,000 square feet upon full acquisition[22]. Rental Properties - The average occupancy rate of the group's rental properties as of December 31, 2023, was 92%[28]. - The group's completed rental property portfolio expanded to approximately 9.9 million square feet, with retail space accounting for 55%, office space 37%, and industrial space 4%[29]. - The retail property portfolio maintained a stable occupancy rate, with rental renewals showing an increase, and foot traffic exceeding pre-pandemic levels from 2018[30]. - The office leasing market in Hong Kong faced challenges due to high vacancy rates and significant future supply, yet the group's office properties maintained stable occupancy rates[31]. Strategic Initiatives - The group is actively pursuing market expansion through new project launches and strategic partnerships in the real estate sector[12]. - The group is monitoring the government's "Northern Metropolis" development plan, which is expected to have a significant impact on land prospects in Hong Kong[27]. - The group is currently developing the Central Waterfront project, which will have a total floor area of 1.6 million square feet and over 300,000 square feet of public green space, with completion expected in Q4 2026 and Q4 2032[24]. Financial Position - The group's net debt stood at HKD 71.89 billion as of December 31, 2023, with a debt ratio of 22.6%[67]. - The company’s total liabilities increased to HKD 138,316 million from HKD 124,164 million, indicating a rise of 11.4%[76]. - The company’s equity attributable to shareholders was HKD 326,542 million, down from HKD 327,948 million in the previous year[76]. - The company reported a decrease in inventory to HKD 94,164 million from HKD 97,258 million, a decline of 3.2%[75]. Market Conditions - The Hong Kong economy grew by only 3.2% in 2023, with private consumption rebounding by 7.3% after a decline of 2.2% in 2022[4]. - The mainland real estate market is in a consolidation phase, with policies such as "recognizing houses but not loans" and reduced mortgage rates aimed at stimulating demand, yet overall market activity remains down[35]. Sustainability and Corporate Governance - The group has received multiple accolades for its sustainability efforts, including the "3 Years + Environmental Pioneer" award and recognition as "Company with Outstanding ESG Performance" in the real estate sector[34]. - The board of directors has confirmed compliance with the corporate governance code as per the Hong Kong Stock Exchange rules[167].

Core Viewpoint - DBS has issued a "Buy" rating for Henderson Land Development (00012), lowering the target price from HKD 26.7 to HKD 24.7 [1] Group 1: Asset Sales and Financial Strength - The company sold the entire North Point Harbour City building for HKD 2.21 billion to Li Ning (02331), which is viewed positively as it enhances profitability and financial strength [1] - The remaining three plots of land in the Fanling North New Development Area will be compensated in cash by the government, providing substantial profits for the company [1] Group 2: Land Reserves and Market Potential - Henderson Land Development possesses the largest agricultural land reserves in Hong Kong, with most located in the Northern Metropolis area [1] - Any positive news regarding the development of the Northern Metropolis is expected to create upward pressure on the company's stock price [1] Group 3: Income and Valuation Outlook - The expansion of the leasing investment portfolio is expected to improve the recurring income base, leading to better earnings quality [1] - In the long term, this improvement is anticipated to support a higher stock valuation for the company [1]

Financial Performance - For the six months ended June 30, 2023, the group's attributable underlying profit was HKD 6.073 billion, an increase of 18% from HKD 5.137 billion in the same period last year[3]. - The group's attributable profit, including fair value losses, was HKD 5.957 billion, up 25% from HKD 4.781 billion year-on-year[3]. - Basic earnings per share for the period were HKD 1.25, compared to HKD 1.06 in the previous year, reflecting an increase of 18%[3]. - The interim dividend declared was HKD 0.50 per share, unchanged from the previous year[3]. - The group recorded a 26% decrease in property development revenue, amounting to HKD 3.26 billion, and a 35% decrease in pre-tax profit, amounting to HKD 696 million compared to the same period last year[42]. - The group achieved a total self-owned residential contract sales amount of approximately RMB 3.34 billion, a 14% increase year-on-year, equivalent to HKD 3.69 billion[42]. - The company reported a profit of HKD 6,122 million for the six months ended June 30, 2023, compared to HKD 4,899 million for the same period in 2022, representing a 25% increase[115]. - The total revenue from property sales for the group was HKD 4,337 million, a slight increase of HKD 28 million or 1% from HKD 4,309 million in the same period of 2022[79]. Property Development - Total revenue from property development in Hong Kong increased by HKD 0.7 billion to HKD 43.01 billion, while the attributable pre-tax profit decreased by HKD 0.196 billion to HKD 9.62 billion[5]. - The total contracted sales amount for self-owned properties in Hong Kong was approximately HKD 67.25 billion, a 10% increase compared to the same period last year[5]. - As of June 30, 2023, the unrecognized contracted sales amount for self-owned properties in Hong Kong was approximately HKD 148.24 billion, with about HKD 69.99 billion expected to be recognized in the second half of 2023[5]. - The group has acquired a total of approximately 3.4 million square feet of self-owned floor area for urban redevelopment projects, with over 600,000 square feet planned for sale in the second half of 2023[6]. - The total saleable floor area for projects available for sale in the second half of 2023 is 2.6 million square feet, with an additional 0.9 million square feet from ongoing urban redevelopment projects[7]. - The group has purchased 2.8 million square feet of land with full ownership, expected to be available for sale or lease between 2024 and 2025[7]. - The group has 601,314 square feet remaining for sale at The Henley project, with 100% ownership[10]. - The group has 543,498 square feet remaining for sale at the Tian Tang project, with 18% ownership[10]. Rental Income and Property Management - The total rental income attributable to the group in Hong Kong increased by 3% year-on-year to HKD 3.31 billion for the six months ended June 30, 2023[29]. - The attributable net rental income before tax rose by 6% year-on-year to HKD 2.47 billion during the same period[29]. - The average occupancy rate of the group's rental properties in Hong Kong was 93% as of June 30, 2023[29]. - The group owns approximately 970 million square feet of completed rental properties in Hong Kong, categorized as follows: 5.4% retail, 3.5% office, 0.4% industrial, and 0.4% residential[30]. - The rental income from shopping malls and offices remained stable at HKD 398.9 million, with an EBITDA of HKD 349.9 million[52]. - The rental rate for "688 Plaza" in Shanghai reached 95% by the end of June 2023, while other projects in the city had rental rates around 90%[45]. - The average occupancy rate of the group's rental properties in Hong Kong was 93% as of June 30, 2023[29]. Debt and Financing - The net debt to equity ratio was 24.0%, a slight decrease from 24.1% in the previous year[2]. - The group's net borrowings as of June 30, 2023, were HKD 77.855 billion, with a debt-to-equity ratio of 24.0%, slightly down from 24.1% at the end of 2022[69]. - The overall effective borrowing interest rate for bank and other borrowings in Hong Kong was approximately 3.79% for the six months ended June 30, 2023, compared to approximately 1.53% in 2022[96]. - The group issued guaranteed notes totaling HKD 6,847,000,000 under its medium-term note program during the six months ended June 30, 2023, compared to HKD 3,620,000,000 in the same period of 2022[98]. - The group has secured over HKD 48 billion in green and sustainable financing since 2020, including the first social responsibility loan for property developers in Hong Kong[69]. - The total debt as of June 30, 2023, was HKD 91,179,000,000, slightly up from HKD 90,381,000,000 as of December 31, 2022[96]. Market Outlook and Strategy - The company expects the local real estate market to remain sluggish in the second half of the year unless new government measures are introduced[71]. - The group plans to continue exploring property development opportunities in collaboration with local developers, leveraging its brand reputation and financial strength[38]. - The company plans to launch five urban projects in the second half of 2023, with approximately 5,660 self-owned residential units or about 240,000 square meters available for sale[72]. - The group is actively pursuing sustainable and human-centered design in its new developments, setting a new benchmark for green buildings in Hong Kong[32]. - The company continues to explore new strategies for market expansion and potential acquisitions to enhance its portfolio[143]. Other Business Segments - The restaurant business reported revenue of HKD 138.6 million with an EBITDA of HKD 15.7 million, a significant increase from HKD 65.2 million and a loss of HKD 6 million in the same period last year[53]. - The tourism business generated revenue of HKD 337.4 million and an EBITDA of HKD 10.5 million, compared to HKD 10.8 million in revenue and a loss of HKD 790,000 in the previous year[54]. - The hotel room business generated revenue of HKD 154 million, an increase of HKD 98 million (or 175%) compared to the same period in 2022, with a pre-tax profit of HKD 33 million, reversing a loss from the previous year[92]. - The total revenue from hotel operations was HKD 1,557 million, with a profit of HKD 33 million[146]. - The total revenue from other businesses, which includes hotel management and construction services, increased to HKD 1,557 million from HKD 807 million[127]. Sustainability and Innovation - The group continues to innovate in construction materials, winning a gold medal at the 48th Geneva International Exhibition for a new silicone sealant[33]. - The group has been recognized with multiple awards for sustainability, including the "Developer of the Year - Hong Kong" at the 2023 Asia Property Awards[70]. - The clean coal chemical production facility in Inner Mongolia has commenced production using a mix of waste tires and coal, achieving international sustainable system certification[61]. - The group is participating in a land-sharing pilot scheme in Tai Po, proposing to provide a total of 12,120 residential units, with 70% allocated for public housing[28].