2026-02-27 04:30Financial Data and Key Metrics Changes - The group's underlying profit for H1 2026 was HKD 12.2 billion, a year-on-year increase of 16.7% driven by higher profits from sales of trading and investment properties and lower finance costs [1] - Reported profit increased to HKD 10.2 billion, up 36.2% year-on-year, with underlying earnings per share at HKD 4.21 and reported earnings per share at HKD 3.54 [2] - The interim dividend declared was HKD 0.98 per share, a 3.2% increase from HKD 0.95 last year [2] - Total operating profit for H1 2026 reached HKD 16.5 billion, representing a 14.3% increase year-on-year [3] Business Segment Data and Key Metrics Changes - In property development, profit was approximately HKD 4.9 billion, a substantial increase of 94.9%, primarily due to higher profit recognition from Mainland projects [2] - The hotel business recorded an operating profit of HKD 428 million, up from HKD 377 million in the same period last year [3] - Profit from other business segments decreased by 11.7% year-on-year to about HKD 2.3 billion [3] Market Data and Key Metrics Changes - The Hong Kong residential market saw a 65% increase in property sales, totaling HKD 26.5 billion [5] - The group's gross rental income in Hong Kong remained stable at about HKD 8.8 billion, with an overall average occupancy of around 92% [9] - The Mainland rental portfolio's gross rental income held steady at about RMB 3.1 billion, with a slight decrease of 0.8% in RMB terms [12] Company Strategy and Development Direction - The company aims to maintain a strong financial position to seize land opportunities in Hong Kong while focusing on prudent financial management [4] - The strategy includes leveraging a reputable brand for premium sales, ongoing portfolio reviews to enhance returns, and expanding the recurrent income base through new investment properties [4][11] - The company plans to launch various new residential projects over the next 10 months, including significant developments in Kowloon and Yuen Long [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Hong Kong residential market's recovery, citing strong demand from end users and investors, and an improving supply-demand situation [33] - The company anticipates continued strong momentum in property sales and a favorable mortgage environment supporting market stability [16] - Management highlighted the importance of adapting to new circumstances and leveraging technology to enhance property quality and services [17] Other Important Information - The group's total land bank in Hong Kong was about 57.3 million sq ft, with ongoing efforts to replenish it through various channels [5] - The International Gateway Centre (IGC) is positioned as a key commercial landmark with excellent transport connectivity, expected to support the transformation of West Kowloon [10][24] - The company remains committed to sustainability and has received high ratings for its new projects [23] Q&A Session Summary Question: Outlook for Hong Kong property home prices - Management noted that the residential market is in a recovery phase, with transaction volumes reaching record highs and positive rental trends expected to continue [32] Question: Update on residential sales targets - The company plans to maintain its sales target for FY 2026 at HKD 30 billion, with several new projects set to launch [34][35] Question: Leasing progress for IGC and Artist Square Towers - Management reported strong interest in IGC, with leasing progressing well, and expressed confidence in the leasing situation for Artist Square Towers [39][42]