CK Asset Holdings Limited · HKEX:1113
CK Asset — H1 2022 Earnings Presentation
32 slides from CK Asset's earnings presentation, Aug 4, 2022
Slide 1: 2022 Interim Results
2022 Interim Results 4 August 2022
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: 2022 Interim Results Highlights
2022 Interim Results Highlights HK$12,936 million of reported profit HK$ Million 2022 2021 Change Revenue 47,620 33,063 +44% Profit attributable to shareholders 12,936 8,355 +55% Earnings per share (HK$ / share) 3.55 2.25 +58% Note: (1) Earnings per share is based on the weighted average of 3,642,73
Slide 4: 2022 Interim Results Highlights: 4.9% increase in DPS
2022 Interim Results Highlights 4.9% increase in DPS Net book value Dividend per share per share (1) HK$0.43 HK$103.21+ Y % +30.8% +4.9% +1.3% +% -39% DPS (HK$ / share) 2.5 2 1.5 1 0.5 0.41 0.43 0 2015 2016 2017 2018 2019 2020 2021 2022 +% Interim Final Note: (1) Based on 3,643,583,833 shares in iss
Slide 5: Principal Activities Analysis
Principal Activities Analysis 50% of our profit contribution is recurrent in nature Revenue by Principal Activities Recurrent Revenue HK$ Million 1H2021 1H2022 HK$18,274M HK$27,223M 57% 55% recurrent recurrent Profit Contribution by Principal Activities Recurrent Profit Contribution HK$ Million 1H20
Slide 6: Profit contribution by region
2022 Interim Results Highlights 50% contribution from HK, 17% from the Mainland, 33% from UK and Others HK$ Million 2022 Profit Contribution Hong Kong 7,946 HK$ Million The Mainland 2,708 UK 2,807 Others 2,530 Total 15,991 Note: (1) Profit Contribution refers to contribution from principal activitie
Slide 7: Property Sales
Property Sales 7
Slide 8: Property Sales
Property Sales HK$ Million 2022 2021 Change Revenue 20,397 14,789 +38% Profit contribution 8,054 7,917 +2% Margin 39.5% 53.5% 8
Slide 9: Property Sales: Healthy margins across markets
Property Sales Healthy margins across markets HK$ Million Revenue Profit Contribution & Margin 2022 2021 2022 2021 Hong Kong 12,748 609 5,422 42.5% 112 18.4% The Mainland 7,436 14,036 2,563 34.5% 7,787 55.5% Overseas 213 144 69 32.4% 18 12.5% 9
Slide 10: HK$13,877M contracted sales not yet recognized
Property Sales HK$13,877M contracted sales not yet recognized ● About HK$5,579 million scheduled for recognition in 2H 2022 Hong Kong HK$8,339M The Mainland Overseas HK$4,579M HK$959M 10
Slide 11: Property Rental
Property Rental 11
Slide 12: Property Rental: Healthy overall margin
Property Rental Healthy overall margin HK$ Million 2022 2021 Change Revenue 2,993 3,353 -11% Profit 2,426 2,894 -16% contribution Margin 81.0% 86.3% A surplus of HK$738 million was recognized for the disposal of 5 Broadgate in March 2022 under “Surplus on disposal of investment properties” 12
Slide 13: 16.6 million sq.ft. of investment properties
Cheung Kong Center, Hong Kong 1 & 2 Heuston South Quarter, Dublin Hong Kong 13.0 million sq.ft. 16.6 million sq.ft. of investment properties The Mainland Overseas 1.9 million sq.ft. 1.7 million sq.ft. M+, Wuhan 13
Slide 14: Decrease in fair value of investment properties of HK$659 million
Cheung Kong Center, Hong Kong 1 & 2 Heuston South Quarter, Dublin Decrease in fair value of investment properties of HK$659 million 4% - 8% cap rate 14 M+, Wuhan
Slide 15: Hotel and Serviced Suite Operation
Hotel and Serviced Suite Operation 15
Slide 16: Hotel and Serviced Suite Operation: Improved contribution
Hotel and Serviced Suite Operation Improved contribution with higher hotel room occupancy HK$ Million 2022 2021 Change Revenue 1,533 1,190 +29% Profit contribution 315 124 +154% Margin 20.5% 10.4% 16
Slide 17: Mainland contribution still affected by Covid restrictions
Hotel and Serviced Suite Operation Mainland contribution still affected by Covid restrictions HK$ Million Profit Contribution 2022 2021 Hong Kong 392 162 The Mainland (77) (38) Total 315 124 17
Slide 18: Hotel and serviced suite occupancy rates
Hotel and Serviced Suite Operation 65% Average hotel room occupancy rate 88% 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 2022 2021 Change Revenue 440 432 +2% Profit 182 186 -2% contribution Margin 41.4% 43.1% 1881 HERITAGE, Hong Kong 20
Slide 21: Pub Operation
Pub Operation 21
Slide 22: 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 22
Slide 23: Pub Operation: Improved contribution with lifting of Covid restrictions
Pub Operation Improved contribution with lifting of Covid restrictions Pub Pub Brewing & 1H 2022 1H 2021 Company Partners Brands Change HK$ Million HK$ Million HK$ Million HK$ Million HK$ Million Revenue 8,681 846 1,000 10,527 3,635 +190% Profit 478 226 162 866 (1,072) +181% contribution Margin 5.5%
Slide 24: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution Infrastructure and Utility Asset Operation 24
Slide 25: Infrastructure and Utility Asset Operation: Over HK$4 billion profit contribution
Infrastructure and Utility Asset Operation Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution Interest in Principal Activity Joint Venture CK William JV An owner and operator of energy utility assets in Australia, the 40% United States, Canada and the United Kingdom CKP
Slide 26: Significant increase in income from infrastructure and utility assets
Infrastructure and Utility Asset Operation Significant increase in income from infrastructure and utility assets Revenue Profit Contribution (HK$ Million) (HK$ Million) Margin CK William JV (DUET Group) 2,185 804 36.8% CKP (Canada) JV (Reliance Group) 2,243 700 31.2% Sarvana JV (ista Group) 3,006 83
Slide 27: Interests in Real Estate Investment Trusts
Interests in Real Estate Investment Trusts HK$188 million(1) total distribution received HK$ Million 2022 2021 Share of profit of Hui Xian REIT 113 153 Cash distributions received from Fortune REIT 128 154 and Prosperity REIT 241 307 Hui Xian REIT Fortune REIT Prosperity REIT Interest as of 30 June
Slide 28: Aircraft Leasing
Aircraft Leasing In April 2022, the Group completed the disposal of its investment in aircraft assets and discontinued the operation of aircraft leasing business. A post-tax profit of HK$2,005 million was recognised, including a gain of HK$1,417 million on the disposal of aircraft assets. 28
Slide 29: Gearing and Maturity Profile
Gearing and Maturity Profile Bank and other borrowings with maturities HK$ Billion Within one year 5.2 Within two to five years 28.0 Beyond five years 12.7 Total 45.9 Bank balances and deposits 59.8 Net Cash 13.9 Corporate Ratings: Moody’s: A2 (Stable) S&P: A (Stable) 29
Slide 30: Landbank Summary
Landbank Summary Total landbank of 128 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 5 67 4 76 Development Investment Properties 13 2 2 17 Hotels and Serviced Suites 8 1 - 9 Pub Properties - - 26 26 Total 26 70
Slide 31: Major Property Acquisition in Hong Kong
Landbank Summary Major Property Acquisition in Hong Kong Approximate Developable Group’s Date Project Location Gross Floor Area Interest (sq.ft.) Combined development of projects located at Hung Fook March 2022 Street, Kai Ming Street and 526,807 100% Wing Kwong Street, To Kwa Wan 31
Slide 32: Thank you
RYE TER RA BR ZS] CK ASSET HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability - Stock Code: 1113) Thank you