Hong Kong's Henderson Land H1 underlying profit rises on property sales
Hong Kong's Henderson Land H1 underlying profit rises on property sales
Overview
Hong Kong property developer's H1 underlying profit rose 66% driven by local property sales
Reported profit for H1 rose 41%, reflecting fair value losses on investment properties
H1 revenue from property development in Hong Kong surged 212% yr/yr
Outlook
Henderson Land expects to launch 0.6 mln sq ft of new projects for sale in H2 2026
Company sees about HK$6,365 mln in contracted sales to be recognised in H2 2026
Company says Hong Kong property market outlook supported by government policy and incoming talent
Result Drivers
PROPERTY SALES SURGE - Co said profit was mainly driven by a substantial increase in local property sales, including strong launches of urban projects
LAND RESUMPTION GAIN - Co recorded a gain from the government's resumption of certain land lots in the New Territories
RENTAL INCOME GROWTH - Gross rental income in Hong Kong rose 3% yr/yr, supported by high occupancy and asset enhancement strategies
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| HK$17.20 bln |
|
H1 Net Income Attributable |
| HK$4.09 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Henderson Land Development Co Ltd is HK$31.70, about 12.5% above its August 20 closing price of HK$28.18
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Aug 18 - Hong Kong's Prosperity REIT H1 revenue falls 2.7% on office market pressure
Aug 20 - Chinese Estates Holdings H1 loss narrows
Aug 20 - China Evergrande founder sentenced to life in prison
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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Hong Kong's Henderson Land H1 underlying profit rises on property sales
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