Sino Land Company (83) H2 2024 earnings summary

Executive summary

• Revenue for FY 2023/24 was HK$8,765m, down 26.2% year-over-year, mainly due to reduced property sales, partially offset by improved rental and hotel revenues.

• Underlying profit from operations fell 15.0% to HK$5,171m, and net profit attributable to shareholders dropped 24.7% to HK$4,402m year-over-year.

• The group maintained a strong balance sheet with net cash of HK$45,585m, up HK$3,617m year-over-year.

• Dividend payout remained at HK$0.58 per share, with a payout ratio of 94.2% and a scrip option for the final dividend.

Financial highlights

• Underlying EPS was HK$0.61, down 19.7% year-over-year; reported EPS was HK$0.52, down 28.8%.

• Shareholders' funds increased 2.1% to HK$165,790m; NBV per share decreased 3.5% to HK$19.17.

• Net cash position improved despite land and property acquisitions and debt repayments, driven by higher interest income and JV cash distributions.

• Gross profit was HK$3,421m, compared to HK$5,389m last year.

• Revenue from property sales (including associates and JVs) was HK$8,893m, down from HK$11,937m year-over-year.

Segment performance

• Property sales segment profit dropped 73.7% to HK$802m due to lower sales volume and margin.

• Property rental segment profit declined 2.7% to HK$2,928m, impacted by the end of government waiver fee concessions.

• Hotel operations segment profit rose 8.0% to HK$487m, with revenue up 11.0% to HK$1,527m, reflecting recovery in Hong Kong and strong overseas performance.

• Overall occupancy at 90.8%, with residential and industrial sectors showing improved rates; office and retail slightly down.

• Mainland China: 3.5 million sq ft land bank, with key projects in Qianhai, Zhangzhou, and Chengdu under development.