Sun Hung Kai’s Profit Rose 22% Boosted by Home Sales, Rents

  • Underlying profit at developer increased to HK$24.2 billion
  • Sun Hung Kai cites growing homebuyer confidence in Hong Kong

Sun Hung Kai Properties Ltd., Hong Kong’s largest property developer by market value, said full-year earnings rose 22 percent as sales of new projects increased and rental income rose.

Underlying profit, which excludes property revaluations, increased to HK$24.2 billion ($3.12 billion) in the 12 months ended June 30, compared with HK$19.8 billion a year earlier, the company said in a statement to the Hong Kong stock exchange on Thursday. That compares with the HK$23.7 billion mean estimate of 14 analysts surveyed by Bloomberg News.

Sun Hung Kai has been one of the most aggressive of Hong Kong’s major developers in wooing new buyers, offering discounts of as much as 18 percent and mortgages for up to 120 percent of a home’s value to arrest a slowdown in home sales, which fell to a 25-year low in February.

“Hong Kong’s residential market has improved markedly over the past few months with an increase in transaction volume and growth in homebuyer confidence,” Sun Hun Kai said in the statement.

Revenue at the developer rose 37 percent to HK$91.2 billion. Sun Hung Kai said it achieved record contracted sales of about HK$40.7 billion, helped by developments such as the Ultima project in Ho Man Tin and the second phase of its Century Link project. Net rental income rose to almost HK$16.5 billion, boosted by investment properties in both Hong Kong and on the mainland.

Sun Hung Kai shares have risen 29 percent this year, compared with a 17 percent gain in the Hang Seng Property Index.

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