Ge Long Hui·2025-08-23 12:03Group 1 - The company's revenue for the first half of 2025 decreased by 18.8% year-on-year to HKD 9.55 billion, primarily due to a decline in property sales and other income [1] - Core net profit fell by 44.4% year-on-year to HKD 3.05 billion, mainly attributed to a decrease in gross margin and a one-time compensation of approximately HKD 1.06 billion received in the first half of 2024 for government land recovery [1] - The company maintained a semi-annual dividend of HKD 0.5 per share, with the core payout ratio increasing by 34.7 percentage points year-on-year to 79.4% [1] Group 2 - Property development revenue decreased by 18.9% year-on-year to HKD 4.01 billion, impacted by one-time government land recovery income and a decline in profit margins for 2025 [1] - The pre-tax profit from property development dropped by 76.7% year-on-year to HKD 340 million [1] - As of the first half of 2025, the company had unsold contracts worth HKD 12.7 billion, with approximately 66% expected to be recognized in the second half, maintaining a gross margin of 15-20% [1] Group 3 - Total rental income slightly decreased by 2.8% year-on-year to HKD 3.36 billion, with a stable occupancy rate of 93% [2] - The occupancy rate of The Henderson, a Grade A office in Central, reached 80%, significantly higher than another major new project in the same area, which is below 20% [2] - The company anticipates a slight decline in renewal rents, but believes that future rental growth will primarily come from an increase in The Henderson's occupancy and the phased completion of a large new waterfront project in Central between 2026 and 2032 [2] Group 4 - The company maintains a neutral rating with a target price raised to HKD 25.90, reflecting a 55% discount to net asset value [2] - Short-term risks for the company's core business have decreased, but medium to long-term uncertainties remain, particularly regarding property development in Hong Kong and mainland China, as well as the long recovery period for the new waterfront project in Central [2]