The Wharf (Holdings) (4) H1 2026 earnings summary

Executive summary

• Operating and underlying profits (excluding investments) rose 6% year-over-year, but investment income declined due to portfolio reduction and group profit fell 91% mainly due to a larger investment property revaluation deficit.

• Group revenue decreased 6% to HK$5,344M, and underlying net profit dropped 17% to HK$1,697M due to lower dividend income, partially offset by higher interest income.

• Profit attributable to shareholders dropped to HK$48M from HK$535M, mainly due to a prudent investment property revaluation deficit.

• Interim and special dividends totaling HK$0.40 per share were declared, doubling last year's interim payout in celebration of the 140th anniversary.

Financial highlights

• Operating profit declined 11% year-over-year to HK$2,354M; group revenue decreased 6% to HK$5,344M.

• Attributable profit to equity shareholders dropped 91% to HK$48M; basic earnings per share fell 91% to HK$0.02; underlying EPS down 17% to HK$0.56.

• Net cash position at HK$8.6B (excluding Modern Terminals) as of June 2026, up from HK$6.2B at year-end 2025.

• Gearing ratio improved to 5.0% at end-2025.

• Average interest rate on borrowings at 3.1%.

Outlook and guidance

• Global outlook remains uncertain amid geopolitical tensions, volatile energy prices, inflation, and US interest rate concerns.

• Hong Kong positioned as a "safe haven" with capital and talent inflows, but faces regulatory uncertainty and tighter outbound investment regulations.

• Mainland China growth led by exports, but property sector remains weak despite tech and AI advances.

• The group will maintain strong financial discipline and agility to adapt to evolving trends.