CK Asset Holdings Limited · HKEX:1113
CK Asset — H1 2021 Earnings Presentation
37 slides from CK Asset's earnings presentation, Aug 5, 2021
Slide 1: 2021 Interim Results
2021 Interim Results 5 August 2021
Slide 2: Disclaimer
Disclaimer Potential investors and shareholders of the Company (the “Potential Investors and Shareholders”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group. The information included is solely for the use in th
Slide 3: 2021 Interim Results Highlights
2021 Interim Results Highlights HK$8,355 million of reported earnings HK$ Million 2021 2020 Change Revenue 34,319 36,323 -5.5% Profit attributable to shareholders 8,355 6,360 31.4% Earnings per share (HK$ / share) 2.25 1.72 30.8% Note: (1) Earnings per share is based on the weighted average of 3,712
Slide 4: 20.6% increase in DPS
2021 Interim Results Highlights 20.6% increase in DPS Net book value Dividend per share per share (1) HK$0.41 HK$97.69+ Y % +30.8% +20.6% +1.7% +% -39% DPS (HK$/share) 2.5 2 1.5 1 0.5 0.34 0.41 0 2015 2016 2017 2018 2019 2020 2021 Interim Final +% Note: (1) Based on 3,646,733,833 shares in issue on
Slide 5: Principal Activities Analysis
Principal Activities Analysis 43% of our profit contribution is recurrent in nature Revenue by Principal Activities Recurrent Revenue HK$ Million 1H2021 1H2020 HK$19,530M HK$16,839M 57% 46% recurrent recurrent Profit Contribution by Principal Activities Recurrent Profit Contribution HK$ Million 1H20
Slide 6: Revenue and profit contribution by region
2021 Interim Results Highlights 19% contribution from HK, 59% from the Mainland, 22% from the UK and Overseas HK$ million HK$ million HK$ Million 2021 Revenue Profit Contribution Hong Kong 4,509 2,652 The Mainland 14,726 8,099 UK 6,415 362 Others 8,669 2,696 Total 34,319 13,809 Note: (1) Profit Cont
Slide 7: Property Sales
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Slide 8: Property Sales: Respectable overall contribution margin
Property Sales Respectable overall contribution margin HK$ Million 2021 2020 Change Revenue 14,789 19,484 -24% Profit contribution 7,917 9,004 -12% Margin 53.5% 46.2% 8
Slide 9: Property Sales: Majority of contribution from the Mainland
Property Sales Majority of contribution from the Mainland HK$ Million Revenue Profit Contribution & Margin 2021 2020 2021 2020 Hong Kong 609 6,116 112 18.4% 1,768 28.9% The Mainland 14,036 10,929 7,787 55.5% 6,638 60.7% Overseas 144 2,439 18 12.5% 598 24.5% 9
Slide 10: HK$41,506M contracted sales not yet recognized
Property Sales HK$41,506M contracted sales not yet recognized ● About HK$19,826 million scheduled for recognition in 2021 Hong Kong HK$30,690M The Mainland Overseas HK$10,701M HK$115M 10
Slide 11: Property Rental
Property Rental 11 5 Broadgate, London
Slide 12: Property Rental: Healthy overall margin
Property Rental Healthy overall margin HK$ Million 2021 2020 Change Revenue 3,353 3,453 -3% Profit 2,894 3,169 -9% contribution Margin 86.3% 91.8% 12 5 Broadgate, London
Slide 13: 17.4 million sq.ft. of investment properties
Cheung Kong Center, Hong Kong 5 Broadgate, London Hong Kong 13.0 million sq.ft. 17.4 million sq.ft. of investment properties The Mainland Overseas 1.9 million sq.ft. 2.5 million sq.ft. M+, Wuhan 13 8
Slide 14: Increase in fair value of investment properties of HK$121 million
Cheung Kong Center, Hong Kong 5 Broadgate, London Increase in fair value of investment properties of HK$121 million 4% - 8% cap rate M+, Wuhan 14
Slide 15: Hotel and Serviced Suite Operation
Hotel and Serviced Suite Operation 15
Slide 16: Improvement in occupancy for hotels and serviced suites
Hotel and Serviced Suite Operation Improvement in occupancy for both daily hotels and serviced suites HK$ Million 2021 2020 Change Revenue 1,190 992 +20% Profit contribution 124 33 +276% Margin 10.4% 3.3% 16
Slide 17: Majority of contribution from HK operations
Hotel and Serviced Suite Operation Majority of contribution from HK operations HK$ Million Profit Contribution 2021 2020 Hong Kong 162 90 The Mainland (38) (57) Total 124 33 17
Slide 18: Approximately 15,000 rooms and serviced suites
Hotel and Serviced Suite Operation Approximately 15,000 rooms and serviced suites 30% Average hotel occupancy rate 90% Average serviced suites occupancy rate 18
Slide 19: Property and Project Management
Property and Project Management 19 Stars by the Harbour, Hong Kong
Slide 20: Property and Project Management
Property and Project Management HK$ Million 2021 2020 Change Revenue 432 403 +7% Profit 186 173 +8% contribution Margin 43.1% 42.9% 1881 HERITAGE, Hong Kong 20
Slide 21: Aircraft Leasing
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Slide 22: Aircraft Leasing: Contribution margin affected by lease restructuring
Aircraft Leasing Contribution margin affected by lease restructuring support and lack of trading activity HK$ Million 2021 2020 Change Revenue 1,256 1,520 -17% (1) Profit contribution 440 733 -40% Margin 35.0% 48.2% Note: (1) Profit contribution in 2020 included disposal gain of HK$195 million. 22
Slide 23: Aircraft Leasing: 125 aircraft
Aircraft Leasing HK$ Million Profit Contribution Lessee’s Place of Operation 2021 2020 Asia 99 256 Europe 87 164 North America 227 256 Latin America 27 57 Total 440 733 125 Aircraft Average remaining Average age lease term (120 narrow body; 7.3 years 5 wide body) 4.8 years 23
Slide 24: Pub Operation
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Slide 25: Pub Operation
Pub PubOperation Operation A leading integrated brewer and pub retailer operating about 2,700 pubs restaurants and hotels across England, Wales and Scotland Pub Company Operates food-led and drink-led destination pubs and restaurants and community-focused local pubs Pub Partners Owns a portfolio of
Slide 26: Pub Operation: Major impact from over four months of lockdown
Pub Operation Major impact caused by over four months of lockdown Pub Pub Brewing & 2021 Total 2020 Total Company Partners Brands Change HK$ Million HK$ Million HK$ Million HK$ Million HK$ Million Revenue 2,724 349 562 3,635 3,862 -6% Profit (922) 4 (154) (1,072) (1,938) +45% contribution Margin -33
Slide 27: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution Infrastructure and Utility Asset Operation 27
Slide 28: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Infrastructure Over HK$4 billion and profitUtility Asset Operation contribution The acquisition of minority shareholding interests in four infrastructure companies from the Li Ka Shing Foundation was completed in May 2021. 28
Slide 29: Infrastructure and Utility Asset Operation: joint ventures
Infrastructure and Utility Asset Operation Infrastructure Over HK$4 billion and profitUtility Asset Operation contribution Interest in Principal Activity Joint Venture CK William JV An owner and operator of energy utility assets in Australia, the 40% United States, Canada and the United Kingdom CKP
Slide 30: Significant increase in income from infrastructure and utility assets
Infrastructure and Utility Asset Operation Significant increase in income from infrastructure and utility assets Revenue Profit Contribution (HK$ Million) (HK$ Million) Margin CK William JV (DUET Group) 2,048 629 30.7% CKP (Canada) JV (Reliance Group) 2,063 638 30.9% Sarvana JV (ista Group) 3,146 86
Slide 31: Interests in Real Estate Investment Trusts
Interests in Real Estate Investment Trusts HK$306 million(1) total distribution received HK$ Million 2021 2020 Share of profit of Hui Xian REIT 153 99 Cash distributions received from Fortune REIT 154 157 and Prosperity REIT 307 256 Hui Xian REIT Fortune REIT Prosperity REIT Interest as of 30 June 2
Slide 32: Gearing and Maturity Profile
Gearing and Maturity Profile Bank and other borrowings with maturities HK$ Billion Within one year 23.7 Within two to five years 52.7 Beyond five years 16.8 Total 93.2 Bank balances and deposits 43.9 Net debt 49.3 13.8% Net Debt to Shareholders’ Funds Corporate Ratings: Moody’s: A2 (Stable) 11.8% Ne
Slide 33: Landbank Summary
Landbank Summary Total landbank of 132 million sq.ft. Hong Kong The Mainland Overseas Total(1)(2) Million sq.ft. Million sq.ft. Million sq.ft. Million sq.ft. Properties under 6 70 4 80 Development Investment Properties 13 2 2 17 Hotels and Serviced Suites 8 1 - 9 Pub Properties - - 26 26 Total 27 73
Slide 34: Major Property Acquisition in Hong Kong
Landbank Summary Major Property Acquisition in Hong Kong Approximate Developable Date Project Location Group’s Interest Gross Floor Area (sq.ft.) Kai Tak Area 4E, Site 2, Kai Tak, Kowloon February 2021 648,137 100% (New Kowloon Inland Lot No. 6604) Lot No. 2206 in D.D. May 2021 109, Kam Tai Road, 13
Slide 35: ESG – Sustainability Highlights
ESG – Sustainability Highlights Establishment of the Board level Sustainability Committee established in Dec 2020 to oversee management and advise the Board of Sustainability Directors on the development and implementation of Committee the sustainability initiatives of the Group Adoption of Governan
Slide 36: ESG – Business Unit Highlights
ESG – Business Unit Highlights Property Hotel and Serviced Property Development Suite Operation Management West Rail Tsuen Wan West Adoption of energy Goodwell Property Station TW5 Bayside conservation designs at the Management Limited development project Harbourfront Horizon All- received the “BOCH
Slide 37: Thank you
RYE TER RA BR ZS] CK ASSET HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability - Stock Code: 1113) Thank you