2026-02-27 04:32Financial Data and Key Metrics Changes - The group's underlying profit for the six months ended December 2025 was HKD 12.2 billion, a year-on-year increase of 16.7% driven by higher profits from trading and investment properties and lower finance costs [2][3] - Reported profit increased to HKD 10.2 billion, reflecting a 36.2% year-on-year growth [3] - The underlying earnings per share was HKD 4.21, while reported earnings per share was HKD 3.54 [3] - An interim dividend of HKD 0.98 per share was declared, marking a 3.2% increase from HKD 0.95 last year [3] - Net debt stood at HKD 83.6 billion with an improved gearing ratio of 13.5% compared to 15.1% in June 2025 [4][5] Business Segment Data and Key Metrics Changes - In property development, profit reached approximately HKD 4.9 billion, a substantial increase of 94.9% primarily due to higher profit recognition from Mainland projects [3] - The hotel business recorded an operating profit of HKD 428 million, up from HKD 377 million in the same period last year [4] - Profit from other business segments was about HKD 2.3 billion, reflecting an 11.7% year-on-year decrease [4] - The group's total operating profit for the first half of fiscal year 2026 was HKD 16.5 billion, representing a 14.3% increase year-on-year [4] Market Data and Key Metrics Changes - The Hong Kong primary residential market saw higher transaction volumes and a modest price recovery, with contracted sales of about HKD 17.4 billion during the period [8][9] - The Mainland property development business recognized property sales of approximately HKD 5.9 billion, driven by higher residential sales volume [12] - 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 [13] Company Strategy and Development Direction - The company aims to maintain a strong financial position to seize land opportunities in Hong Kong while upholding prudent financial management [5][17] - The strategy includes leveraging a reputable brand to drive premium sales and ongoing portfolio reviews to enhance returns [5][6] - The company plans to continue replenishing its land bank through various channels at reasonable costs to support future growth [6][7] - New projects such as IGC and Artist Square Towers are expected to generate additional rental income gradually [17][25] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the long-term prospects of both Hong Kong and the Mainland, citing steady economic growth and supportive policies [16][26] - The company anticipates that the strong momentum in the residential market will continue, supported by improving supply-demand dynamics and favorable mortgage conditions [35][36] - The management highlighted the importance of adapting to new circumstances and leveraging technology to enhance property quality and services [18][27] Other Important Information - The group celebrated the completion of the International Gateway Centre (IGC), a world-class commercial landmark with high connectivity [23][24] - The company is committed to sustainability and has received high ratings for its green building initiatives [16][24] Q&A Session All Questions and Answers Question: What is the outlook for Hong Kong property home prices? - Management indicated that the Hong Kong residential market is entering a new phase of recovery, with positive rental carry attracting investors and end-users [34] Question: What is the company's pricing strategy for residential projects? - The company maintains a flexible pricing strategy, adjusting prices based on market conditions to achieve a balance between volume and margin [54] Question: What is the leasing progress for IGC and Artist Square Towers? - Management reported strong interest in IGC, with leasing progress on track, and noted that Artist Square Towers is expected to attract tenants due to its unique location [41][42]