Interim result preview
- Interim underlying profit expected to fall 7% on lower development earnings
- Interim DPS expected to stay flat at HK$0.15
- Rental earnings should post modest growth while post-COVID recovery of hotel earnings continues
Sino Land will announce its interim result for FY6/24 on 22 Feb. We forecast the company’s underlying earnings to be 7% lower at HK$2.61bn, dragged by lower development profit, and partially offset by higher interest income led by interest rate hikes. Interim DPS is expected to remain flat at HK$0.15.
Development earnings should fall 37%. Key profit contributors include St. George’s Mansions and La Marina. Other projects booked included Grand Victoria and One SOHO.
Net rental receipts should rise 3% aided by contributions from new investment properties including Landmark North, One North and 38 Wing Kei Road (an industrial building in Kwai Chung). But office reversionary growth should remain negative. Hotel earnings are forecast to be 35% higher backed by improving contributions from Conrad Hong Kong.
Key things to watch for include proposed dividends, net cash position, land acquisition strategy, project launch schedule among others.