Interim result preview
- Rental and hotel operations hit by COVID-led restrictions
- Lower development earnings expected
- Decent gains on warehouse disposal
Kerry Properties will announce its interim results for FY22 on 18 Aug. We forecast its underlying interim earnings to fall 12% to HK$2.08bn, with pandemic-led restrictions to drag rental and hotel earnings. Development profits, which stemmed primarily from inventory sales, should also fall and be a swing factor on bottom-line earnings. Elsewhere, the company should reap decent gains of HK$883m on the disposal of two warehouses in Chai Wan and Shatin. Overall, interim DPS is estimated to remain unchanged at HK$0.40.
Key things to watch for include the latest operations of the China rental portfolio, project launch pipeline in Hong Kong/China, an update on the acquisition of the six remaining plots in Huangpu, and its financial position, amongst others.