HANG LUNG GROUP(00010) 格隆汇·2024-03-30 13:03Core Viewpoint - The chairman of Hang Lung Group, Chen Qizong, reflects on the company's history, performance, and the economic changes in Hong Kong and mainland China, while expressing optimism for the future despite challenges [1][2]. Performance and Dividend Review - For the year ending December 31, 2023, overall revenue slightly decreased by 1% to HKD 10.881 billion, while rental income increased by 2% to HKD 10.879 billion [2]. - Excluding property revaluation impacts, the basic profit attributable to shareholders decreased by 2% to HKD 2.931 billion, with basic earnings per share dropping to HKD 2.15 [2]. - Including all property revaluation impacts, the profit attributable to shareholders increased by 3% to HKD 2.811 billion, with earnings per share rising to HKD 2.06 [2]. - The board proposed a final dividend of HKD 0.65 per share, to be distributed on June 14, 2024, pending shareholder approval, resulting in a total dividend of HKD 0.86 per share for the year [2]. Industry Insights - The chairman emphasizes the need for Hong Kong to strengthen economic ties with mainland China and improve technological capabilities to adapt to global changes [1][9]. - The real estate sector remains a critical pillar of Hong Kong's economy, but the sustainability of high property prices is questioned due to social issues arising from housing affordability [6][7]. - The company maintains a cautious approach to leverage compared to mainland real estate companies, highlighting the importance of financial stability and cash flow [1][2]. - The chairman believes that the world-class commercial real estate leasing business in mainland China presents significant investment opportunities [1][20]. Economic Context - The chairman discusses the historical context of Hong Kong's economy, noting that while it has changed since 1997, the city remains a suitable place for business operations [4][5]. - The impact of geopolitical tensions, particularly between the U.S. and China, is acknowledged as a factor affecting investment sentiment towards China [10][11]. - The chairman asserts that despite the challenges, China's economic growth potential remains strong, particularly in the context of the commercial real estate market [12][20]. Future Outlook - The company is positioned to benefit from the anticipated growth in the mainland's commercial real estate sector, with expectations of achieving annual growth rates of around 10% in the coming years [13][20]. - The chairman expresses confidence in the company's strategies and the ability of the new leadership to navigate the evolving external environment [12][20].