Core Viewpoint - The company reported a significant increase in revenue for the nine months ending September 30, 2025, driven by higher sales from properties held for sale, despite recording a loss attributable to shareholders. Group 1: Financial Performance - The company's consolidated revenue for the nine months was approximately HKD 6.728 billion, a 66.4% increase from HKD 4.043 billion in the same period last year [1] - The loss attributable to shareholders was approximately HKD 0.16 billion, an improvement from a loss of HKD 1.91 billion in the previous year [1] Group 2: Key Factors Affecting Performance - The increase in revenue was primarily due to the delivery of properties, notably the Guangzhou Yuehai Yun Port City, Huizhou Yuehai Yigui Mansion, and Foshan Yuehai Shigui Mansion, with the Guangzhou project having a higher gross profit margin [1] - The company recognized an inventory impairment provision of approximately HKD 1.097 billion due to indications of impairment in some property projects, which was not recorded in the same period last year [1] - The company recorded a fair value loss on investment properties of approximately HKD 99.12 million, compared to HKD 25.83 million in the previous year [1] Group 3: Property Holdings - As of September 30, 2025, the company held completed properties for sale valued at approximately HKD 11.653 billion and properties under development valued at approximately HKD 10.005 billion, totaling about HKD 21.658 billion [2] - The total signed and delivered gross floor area was approximately 214,000 square meters, slightly up from 210,000 square meters in the previous year [2] - The sales amount for properties that have been signed and paid for but not yet delivered was approximately HKD 6.510 billion, down from HKD 9.386 billion at the end of the previous year [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 96.1, indicating a potential upside of 28.2% from the current price of HKD 74.95 [6]. Core Insights - The company's mid-year performance for the fiscal year 2025 is stable, with total revenue increasing by 45% year-on-year to HKD 39.9 billion, while gross profit margin decreased by 11.3 percentage points to 38.9% [1][2]. - Core net profit rose by 17.5% year-on-year to approximately HKD 10.5 billion, aligning with market expectations [1]. - The company anticipates maintaining a dividend payout ratio of 40-50% for the full year, despite a slight decrease in the interim dividend payout ratio to 26.3% [1]. Summary by Sections Financial Performance - Total revenue increased by 45% to HKD 39.9 billion, with property development revenue surging by 323% to HKD 16.4 billion [2]. - Gross profit rose by 12.3% to HKD 15.5 billion, while net profit decreased by 17.7% to HKD 7.5 billion [2]. - The company reported a decrease in rental income by 1.3% to HKD 9.99 billion, with office rental income down by 5.3% [1][2]. Property Development - The company’s contract sales amounted to HKD 24.8 billion, with HKD 30.4 billion in unsold contracts expected to be recognized in the second half of 2025 [1]. - The company plans to launch six new projects in Hong Kong over the next ten months, totaling approximately 2.28 million square feet [1]. Rental and Other Income - Rental income from data center operations increased by 14% to HKD 1.47 billion, while other business lines remained stable [1]. - The report highlights that the company expects a recovery in retail rental income starting from Q4 2024 due to eased travel restrictions [1].