Core Viewpoint - The Hang Seng High Dividend Yield Index (HSSCHKY) has shown positive performance, with significant increases in constituent stocks, indicating a potential recovery in the Hong Kong real estate market and overall economic stability [2]. Group 1: Market Performance - As of April 25, 2025, the HSSCHKY index rose by 0.85%, with notable increases in stocks such as China Resources Land (4.64%) and China Overseas Development (3.76%) [2]. - The Bosera Hang Seng High Dividend ETF (513690) increased by 1.20%, with a latest price of 0.93 yuan and a trading volume of 16.6197 million yuan [2]. - Over the past year, the Bosera Hang Seng High Dividend ETF has seen an average daily trading volume of 78.9566 million yuan [2]. Group 2: Economic Measures - A recent State Council meeting focused on stabilizing employment and the economy, emphasizing the need to maintain a stable stock market and promote healthy development in the real estate sector [2]. - Despite a slight decline in new home sales and falling second-hand home prices, historical trends suggest that the real estate sector often rebounds before the fundamentals stabilize, supported by strong expectations for new policies [2]. Group 3: ETF Performance Metrics - The Bosera Hang Seng High Dividend ETF has a current size of 3.731 billion yuan, with net inflows remaining balanced recently [3]. - The ETF's net value increased by 22.27% over the past year, with a maximum monthly return of 24.18% since inception [3]. - The ETF's Sharpe ratio for the past year is 1.48, indicating a favorable risk-adjusted return [3]. Group 4: Index Composition - As of April 24, 2025, the top ten weighted stocks in the HSSCHKY index account for 28.32% of the index, with Yanzhou Coal Mining (4.39%) and Hang Lung Properties (3.38%) being the most significant [4][6].

Financial Performance - For the year ended December 31, 2024, the group's revenue from property development decreased by 15% to HKD 20,548 million, while the pre-tax profit contribution increased by 31% to HKD 5,632 million[1]. - Total rental income from property leasing rose by 1% to HKD 8,942 million, with pre-tax net rental income also increasing by 1% to HKD 6,507 million[1]. - The group's basic earnings attributable to shareholders for the year were HKD 9,774 million, a slight increase of 1% from HKD 9,706 million in the previous year, resulting in basic earnings per share of HKD 2.02[1][27]. - The announced profit attributable to shareholders decreased by 32% to HKD 6,296 million, with announced earnings per share dropping to HKD 1.30 from HKD 1.91[1][27]. - The net asset value per share as of December 31, 2024, was HKD 66.55, down 1% from HKD 67.45 in the previous year[1]. - The group's total contracted sales in Hong Kong amounted to approximately HKD 112,850 million for the year ended December 31, 2024, with an unrecognized contracted sales amount of HKD 81,650 million as of the end of December 2024[1][32]. - The group recorded a fair value loss of HKD 20,222 million on completed investment properties and properties under development, while adjustments from sold investment properties amounted to HKD 14,556 million[1][27]. - The group has a strong financial position, with a focus on maximizing shareholder value through quality products and services[2]. Land and Development Projects - The company holds a substantial land reserve of 3.78 million square feet in New Territories, 2.38 million square feet in Kowloon, and 0.64 million square feet on Hong Kong Island, which is expected to generate significant revenue in the coming years[11]. - Future expansion plans include developing a series of commercial and residential projects across its extensive land reserves, aiming to capitalize on market opportunities[11]. - The total floor area available for sale by 2025 is 3.2 million square feet, consisting of 1.4 million square feet from unsold units and 1.8 million square feet from upcoming projects[34]. - The total area of urban redevelopment projects is 5.0 million square feet, including 1.7 million square feet from fully acquired properties and 0.6 million square feet from properties with over 20% ownership[34]. - The total area of New Territories projects is 4.1 million square feet, with significant contributions from the Hung Shui Kiu project at 3.4 million square feet[34]. - The company has 24 ongoing major development projects, with a total remaining residential area of 1,994,363 square feet as of December 31, 2024[39]. - The group plans to launch "Belgravia Place" Phase 2 and "South Point" in Ma Tau Kok in February and March 2025, respectively, with strong initial sales performance expected[1][32]. - The company has several projects in the pipeline, including the Kai Tak New Kowloon site with a total floor area of 1,205,028 sq ft and 2,060 units, of which 30% is owned[41]. Sustainability and Environmental Initiatives - The company is focused on sustainable development, achieving Platinum-level certifications in various green building standards, which reflects its commitment to environmental responsibility[13][18]. - The group has secured over HKD 50 billion in green loans and sustainable development financing since 2020, highlighting its commitment to environmental responsibility[114]. - The group has initiated a recycling program for old uniforms, transforming them into eco-friendly school uniforms for special needs students, demonstrating its commitment to sustainability[65]. - The group has launched an environmental Christmas tree project, using collected aluminum cans to create a festive display, further promoting its green initiatives[65]. - The group aims to continue its commitment to sustainable development through its "G.I.V.E." strategy, focusing on environmental protection, innovation, community care, and integrity[115]. Market Position and Strategy - Henderson Land Development has a diversified portfolio with interests in various sectors, including retail, hospitality, and energy, enhancing its market presence and revenue streams[20]. - The company is actively exploring mergers and acquisitions to enhance its market position and expand its operational capabilities[20]. - The group is focusing on leasing large commercial projects, achieving over 80% occupancy for the "Starry International Business Center" in Guangzhou and nearly 90% for the "Starry West Coast Center" in Shanghai[69]. - The group is exploring new market opportunities and potential acquisitions to further enhance its portfolio and market presence[197]. - The group is actively managing lease expirations, with several properties set to expire in 2047, ensuring long-term stability[198]. Awards and Recognition - The company has received multiple awards in 2024, including the Quality Building Award for innovative projects and the Hong Kong Institute of Architects Annual Awards, highlighting its commitment to quality and sustainability[13][18]. - The flagship project, The Henderson, completed in 2024, received multiple awards, including the Hong Kong Non-Residential Project Award at the Quality Building Awards 2024[116]. - The Henderson has received multiple international awards, including the Platinum pre-certification from LEED and the Asia Pacific Green Building Leadership Award from WorldGBC, highlighting the group's commitment to quality and sustainability[62]. Rental and Property Management - The average occupancy rate of the group's rental properties as of December 31, 2024, was 93%[55]. - The group's self-owned rental property portfolio expanded to approximately 10.4 million square feet, with 54% in retail space and 40% in office space[55]. - The total rental income attributable to the group increased by 2% to HKD 6.84 billion, while the attributable net rental income remained stable at HKD 4.91 billion[54]. - The office property portfolio remains resilient with a stable occupancy rate of around 90%, despite challenges in the leasing market due to economic uncertainty and significant new supply[58][60]. - The group manages over 79,000 residential and commercial units, 10 million square feet of retail and office space, and 20,000 parking spaces, maintaining a leading position in the property management industry[64]. Future Outlook - The group anticipates that the average annual completion of private residential units in the next five years will decrease by approximately 8% compared to the previous five years, providing support for the local property market[118]. - The group plans to launch 11 development projects in Hong Kong this year, with approximately 6,400 self-owned residential units or about 3 million square feet of self-owned residential floor area expected to be available for sale by 2025[120]. - The group is expanding its sustainable aviation fuel production capacity with a new plant in Johor, Malaysia, expected to be completed by 2025[122]. - The company is actively pursuing market expansion through various residential and mixed-use developments across key locations in Hong Kong[196].

Market Performance - The Shanghai Composite Index rose by 0.26% to 3276 points, while the Shenzhen Component fell by 0.85% and the ChiNext Index dropped by 1.21%[1] - The Hang Seng Index closed down 1.91% at 21056.98 points, with the Hang Seng Tech Index declining by 3.72% and the Hang Seng China Enterprises Index down by 2.55%[1] - The total market turnover in Hong Kong was 220 billion HKD[1] Economic Indicators - U.S. retail sales increased significantly in March, with a month-on-month growth of 1.4%[1] - The U.S. Producer Price Index (PPI) for March showed a year-on-year increase of 2.7%[19] - China's GDP growth for Q1 was reported at 5.4% year-on-year[19] Federal Reserve and Trade Relations - Federal Reserve Chairman Jerome Powell downplayed interest rate cut expectations, emphasizing the need to prevent tariffs from causing persistent inflation[1] - China expressed an open attitude towards trade negotiations with the U.S., contingent on the U.S. showing more respect and appointing a liaison for talks[1][14] Sector Performance - Precious metals and hotel sectors showed strong performance, while the technology sector faced declines in both Hong Kong and the U.S. markets[1] - Shenzhen Holdings reported a 83.5% year-on-year increase in contract sales for Q1, amounting to approximately 3.133 billion RMB[12]

Core Points - The CSI Hong Kong Stock Connect Real Estate Index opened high and is currently at 1415.63 points, showing a decline of 7.76% over the past month, an increase of 4.84% over the past three months, and a year-to-date decline of 1.11% [1] - The index consists of up to 50 eligible Hong Kong-listed companies that reflect the overall performance of the real estate sector, with a base date of November 14, 2014, set at 3000.0 points [1] Index Holdings - The top ten weighted companies in the CSI Hong Kong Stock Connect Real Estate Index are: New World Development (13.54%), China Resources Land (12.87%), Cheung Kong Property (8.6%), China Overseas Land & Investment (8.19%), Sino Land (4.62%), Wharf Real Estate Investment (4.34%), Henderson Land Development (4.09%), Longfor Group (3.83%), China Resources Mixc Lifestyle (3.39%), and Wharf Holdings (2.92%) [1] Market Composition - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange, with the real estate development sector accounting for 78.01%, real estate management for 11.39%, and real estate services for 10.60% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2]

Investment Rating - The investment rating for the company is Neutral, with a target price adjusted to HKD 23.02, indicating a potential upside of 1.6% from the current price of HKD 22.65 [7][8]. Core Insights - The report highlights stable rental income and dividends, but notes uncertainty in property development cycles. The company is expected to experience a decline in revenue in 2024, with a projected decrease of 8.4% to HKD 25.26 billion, primarily due to reduced property deliveries [2][8]. - Despite the challenges, core net profit is expected to remain stable, with a slight increase of 0.7% year-on-year to HKD 9.77 billion in 2024, supported by gains from property sales and government land compensation [8][9]. - The report anticipates stable rental income growth from 2025 to 2027, with a compound annual growth rate (CAGR) of approximately 13%, driven by new projects and improved occupancy rates in prime office spaces [8][9]. Financial Overview - Revenue projections for the company are as follows: HKD 27.57 billion in 2023, HKD 25.26 billion in 2024, and expected growth to HKD 29.02 billion in 2025 [5][13]. - Core earnings per share (EPS) are projected to be HKD 2.00 in 2023, slightly increasing to HKD 2.02 in 2024, but expected to decline to HKD 1.90 in 2025 [5][13]. - The company maintains a stable dividend policy, with an annual dividend of HKD 1.80 per share, resulting in a dividend yield of 7.9% [5][8]. Market Performance - The company's stock has seen a year-to-date decline of 4.03%, with a 52-week high of HKD 27.25 and a low of HKD 20.55 [4][9]. - The market capitalization is approximately HKD 109.66 billion, with an average daily trading volume of 2.84 million shares [4][9]. Future Outlook - The report indicates that the company has HKD 11.53 billion in unsold sales, with about HKD 10.53 billion expected to be recognized in 2025 [8]. - Future rental growth is anticipated from several key projects, including the completion of a major waterfront project in Central and developments in Shenzhen and Shanghai [8][9].

Financial Performance - The group's attributable profit for the year ended December 31, 2024, was HKD 9.77 billion, an increase of HKD 68 million or 1% compared to HKD 9.70 billion in the previous year[2]. - Basic earnings per share for the year were HKD 2.02, up from HKD 2.00 in 2023[2]. - The group's attributable profit after accounting for fair value losses and adjustments was HKD 6.29 billion, a decrease of HKD 2.96 billion or 32% from HKD 9.26 billion in the previous year[2]. - The proposed final dividend is HKD 1.30 per share, with a total dividend of HKD 1.80 per share for the year, unchanged from the previous year[3]. - Total revenue for the year ended December 31, 2024, was HKD 25,256 million, a decrease of 8.3% from HKD 27,570 million in 2023[112]. - Net profit for the year was HKD 7,283 million, down 25.5% from HKD 9,778 million in the previous year[114]. - Basic and diluted earnings per share decreased to HKD 1.30 from HKD 1.91, representing a decline of 32.0%[114]. - Total comprehensive income for the year was HKD 5,257 million, down 30.6% from HKD 7,575 million in 2023[116]. - The company's net asset value stood at HKD 340,577 million, slightly down from HKD 344,100 million[119]. - The group’s total revenue for the fiscal year 2024 was HKD 25,256 million, a decrease of 8.4% compared to HKD 27,570 million in fiscal year 2023[130]. Property Development - The group's attributable revenue from property development in Hong Kong decreased by 16% to approximately HKD 12.32 billion[5]. - The total contract sales amount for self-owned properties in Hong Kong was approximately HKD 11.28 billion for the year ended December 31, 2024[6]. - The group has acquired approximately 1.7 million square feet of self-owned floor area for urban redevelopment projects[8]. - The total floor area of properties under development or planned for development is approximately 12.3 million square feet[11]. - The company has 24 ongoing development projects with a total remaining saleable area of 1,994,363 square feet, of which 1,397,524 square feet is attributable to the group[13]. - The company plans to launch 10 new projects in 2025, with a total saleable area of 3,216,989 square feet, including the major project at Kai Tak with 1,205,028 square feet[18]. - The company has a 30% interest in the Kai Tak New Kowloon Inland Lot project, which is expected to yield substantial returns upon completion[18]. - The company is focusing on expanding its market presence through strategic developments in high-demand areas such as Kai Tak and Hung Hom[18]. - The total remaining saleable area for residential units is projected to be 1,799,372 square feet by 2025, indicating strong future sales potential[20]. - The company plans to launch 11 development projects in Hong Kong this year, with an estimated 6,400 self-owned residential units or approximately 3 million square feet of self-owned residential floor area available for sale by 2025[104]. Rental Income and Property Management - The total rental income attributable to the group in Hong Kong increased by 2% to HKD 6.84 billion for the year ending December 31, 2024[33]. - The average occupancy rate of the group's rental properties in Hong Kong was 93% as of December 31, 2024[34]. - The group has a total of 10.4 million square feet of completed rental properties, with 54% being retail space and 40% being office space[34]. - The group’s rental income from the International Finance Centre project decreased by 5% to HKD 1.62 billion[33]. - The group’s retail properties have maintained high occupancy rates despite challenges in the retail market, with some malls exceeding pre-pandemic visitor levels[36]. - The group’s office property portfolio remains resilient, with stable occupancy rates despite economic uncertainties and significant new supply[39]. - The group completed several development projects in Hong Kong, including The Henderson with a total floor area of 465,005 sq ft and a 100% ownership interest[43]. - The group manages over 79,000 residential and commercial units, totaling 10 million sq ft of shopping mall and office space, along with 20,000 parking spaces, establishing a leading position in the industry[44]. Market Expansion and Strategic Initiatives - The company is actively pursuing new strategies for market expansion and product development to enhance its competitive position in the real estate sector[18]. - The company is in the process of acquiring additional urban redevelopment projects, with an estimated self-owned floor area of about 177,000 square feet expected post-reconstruction if all rights are acquired[24]. - The company is developing a comprehensive property project at Central Waterfront No. 3, with a total floor area of 1.6 million square feet and over 300,000 square feet of green recreational space, expected to be completed in two phases by Q4 2026 and Q4 2032[28]. - The company plans to expand its market presence in mainland China, targeting a 10% increase in market share over the next fiscal year[158]. - The company is exploring potential acquisitions to diversify its product offerings and expand its customer base[158]. - The company is investing HKD 300 million in technology development to enhance operational efficiency[158]. Environmental and Sustainability Initiatives - The group has secured over HKD 50 billion in green loans and sustainable development loan quotas since 2020, reflecting its commitment to environmental sustainability[98]. - The group has achieved various environmental certifications for its projects, including BEAM Plus and LEED Platinum pre-certification[28]. - The company initiated Hong Kong's first green hydrogen project, expected to produce about 330 kilograms of hydrogen daily by 2025[85]. - EcoCeres, a strategic partner, produced approximately 180,000 tons of sustainable aviation fuel (SAF), capturing about 20% of the global SAF market[82]. - The green methanol production facility in Inner Mongolia has an annual capacity of 100,000 tons, expected to increase to 150,000 tons by the end of 2025[84]. Challenges and Market Conditions - The company recorded a total self-owned contract sales amount of approximately RMB 3.085 billion, a decrease of 48% compared to the previous year, with a corresponding sales area of 220,000 square feet, down 41%[55]. - The average annual completion of private residential units in the next five years is projected to decrease by about 8% compared to the previous five years, which is expected to support the local property market[103]. - The company reported a foreign exchange loss of HKD 546 million in 2024, contrasting with a gain of HKD 353 million in 2023[145]. - The company’s accounts payable aging analysis shows that overdue amounts increased from HKD 1,733 million in 2023 to HKD 2,719 million in 2024, indicating a potential liquidity concern[185]. Future Outlook - The company has set a performance guidance of HKD 13 billion in revenue for the next fiscal year, representing a growth target of 5%[158]. - The company aims for a revenue growth target of 8% for the upcoming fiscal year, driven by market expansion and new product offerings[163]. - Future guidance indicates a focus on enhancing operational efficiency and increasing revenue streams[164].

Core Viewpoint - Li Ka-shing's life exemplifies a true business legend, integrating personal wealth with national development and using corporate power to drive social progress [56] Group 1: Early Life and Career - Li Ka-shing was born in 1928 in a merchant family in Guangdong, which provided him with early exposure to business operations [4] - By the age of 12, he had mastered key skills in gold trading, becoming a notable talent in the local gold shop [6] - At 20, he moved to Hong Kong with 1,000 HKD to seize opportunities in foreign exchange and gold trading, achieving significant profits during a tumultuous period [8][10] Group 2: Real Estate Ventures - In the late 1950s, recognizing the booming housing demand in Hong Kong, Li entered the real estate sector by co-founding Yung Kee Company [14] - He innovated the "layered sale and ten-year installment payment" model, making property ownership accessible to ordinary citizens and significantly boosting market demand [16][17] - By 1963, he helped restructure the company into Cheung Kong Holdings, which quickly gained prominence in the real estate market [19][21] Group 3: Expansion and Success - Li Ka-shing established Hutchison Whampoa in 1972, marking a new phase in his career [22] - He launched Cheung Kong Holdings with 500 million HKD, leading to a prosperous era for the company [24] - The company thrived by acquiring land through "B-type land exchange rights" and redeveloping old buildings, contributing to urban renewal and increasing land value [30][31] Group 4: Investment Strategies - In 2004, Li founded CK Hutchison Holdings, focusing on investments in Chinese stocks, which yielded substantial returns as the Chinese economy grew [36][37] - His investment philosophy emphasized leveraging and risk management, allowing for efficient capital use and maximized returns [43][44] - Li also diversified into other sectors, including energy and hospitality, while supporting educational initiatives with significant donations [46][47] Group 5: Legacy and Influence - Li Ka-shing was one of the last of Hong Kong's "Four Great Families," with his legacy continuing through his sons managing the family business [48][52] - His passing prompted widespread reflection on his contributions, contrasting with ongoing controversies surrounding other business figures in Hong Kong [55]

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]