The Wharf (Holdings) (4) H1 2025 earnings summary

Executive summary

• Underlying net profit rose 3% year-over-year to HK$2,035 million, with profit attributable to shareholders at HK$535 million, reversing a loss last year, and interim dividend maintained at HK$0.20 per share.

• Revenue declined 19% to HK$5,669 million and operating profit fell 14% to HK$2,657 million, mainly due to lower recognition in Mainland development properties and investment property revaluation deficits.

• Prudent balance sheet management with low gearing and strong liquidity was maintained amid weak market conditions.

Financial highlights

• Net debt stood at HK$6.5 billion, with a gearing ratio of 4.4% as of June 2025.

• Average interest cost dropped to 2.4%; interest cover at 13.4 times.

• Interim dividend payout ratio at 30% of underlying net profit.

• Shareholders’ equity up 5% to HK$143.3 billion; long-term investments up 15% to HK$48.4 billion.

• Over 60% of total assets are in premium properties in Hong Kong and Mainland China.

Outlook and guidance

• External environment remains complex with geopolitical, trade, and economic uncertainties likely to fuel volatility.

• Mainland China property market faces persistent oversupply, weak confidence, and recovery depends on government stimulus.

• Hong Kong property market outlook hinges on interest rates and economic recovery pace, with lower rates expected to support demand and gradual price stabilization.

• Project pipeline focuses on Hong Kong development properties, with launches including 1 Plantation Road, 8 Lion Rock Road, and Victoria Voyage.

• Cautious approach to new investments; focus remains on selective opportunities and asset monetization.