Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — H1 FY2007 Earnings Presentation
18 slides from Sun Hung Kai Properties's earnings presentation, Mar 7, 2007
Slide 1: Sun Hung Kai Properties FY2007 Interim Results
SUN HUNG KAI PROPERTIES FY2007 INTERIM RESULTS 7 MARCH 2007
Slide 2: Agenda
Agenda Interim Results Highlights Business Review Prospects Sun Hung Kai Properties – FY2007 Interim Results 2
Slide 3: Interim Results Highlights
Interim Results Highlights Manhattan Hill, West Kowloon
Slide 4: Interim Results Highlights
Interim Results Highlights 6-month ended 31 December 2006 2005 change Reported net profit (HK$m) 10,910 13,505 19% Reported earnings per share (HK$) 4.38 5.62 22% Underlying net profit* (HK$m) 5,297 6,079 13% Underlying earnings per share* (HK$) 2.13 2.53 16% Interim dividend per share (HK$) 0.70 0.
Slide 5: Breakdown of FY2007 Interim Profit
Breakdown of FY2007 Interim Profit 6-month ended 31 December (HK$m) 2006 2005 change Property sales 3,281 4,699 30% Net rental income 2,535 2,235 13% Hotel operation 197 112 76% Telecommunications 48 59 19% Other businesses 656 665 1% Other revenue 314 305 3% Unallocated administrative expenses (321
Slide 6: Review of FY2007 Interim Results
Review of FY2007 Interim Results Major projects sold include Park Island Phase 5, Severn 8 and Harbour Green Completed 4 projects with an attributable GFA of about 2.2m sq. ft. Project Group’s Interest (%) Usage Attributable GFA (sq. ft.) Harbour Green Joint venture R 1,110,000 The Vineyard 100
Slide 7: Review of FY2007 Interim Results (Cont'd)
Review of FY2007 Interim Results (Cont’d) Contribution from property sales fell 30% mainly due to relatively lower margin when compared to The Arch last year Net rental income rose 13% to HK$2,535m − Increased rents for new leases and renewals − Better growth from the office portfolio Increase
Slide 8: Business Review
Business Review APM, East Kowloon
Slide 9: Land Bank in Hong Kong
Land Land Total BankBank in Hong Kong Attributable GFA (m sq. ft.) Hong Kong Mainland China Properties under development 19.8 17.2 Completed investment properties 22.7 2.6 42.5 19.8 Over 23m sq. ft. (site area) of agricultural land in the New Territories of Hong Kong, the majority in conversion pr
Slide 10: Land Bank Replenishment in Hong Kong
Land Bank Land Bank Replenishment in Hong Kong in Hong Kong Added 7 sites with total GFA of about 3.6m sq. ft since July 2006 New Land Bank Group’s Interest (%) Usage Attributable GFA (sq. ft.) Tuen Mun Station Joint venture R/S 1,556,000 Tseung Kwan O Joint venture R/O/H 1,541,000 Ngau Tam Mei Ph
Slide 11: Residential Development
Residential Development Focus on both margin and volume Severn 8 and Manhattan Hill demonstrate SHKP’s premium pricing power Continue to launch new projects for sale − The Vineyard, Yuen Long − Next phase of Manhattan Hill, West Kowloon The Vineyard, Yuen Long Sun Hung Kai Properties – FY2007
Slide 12: Property Investment
Property Investment Investment Properties Increase in rental income Gross Rental Income for 1H FY2007* − Higher rents on renewals and new leases (HK$3,498m) − First full-period contribution from Four Residential Seasons Place 8% Develop over 7m sq. ft. of new rental properties in next 4 to 5 Sho
Slide 13: Property Business in Mainland China
Property Business in Mainland China Progress of new projects − Phase 1 of Shanghai IFC planned to be completed in mid 2009 − Construction have started for Huaihai Zhong Road, Wuxi and Hangzhou Expected presale of the first phase of residential units in Wuxi in the second half of 2007 and Hangzho
Slide 14: Prospects
Prospects Kowloon Station Development Packages 5, 6 & 7
Slide 15: Hong Kong Property Market
Hong Kong Property Market Residential market likely to fare better − Consecutive years of pay rises − Low mortgage interest rates − Strengthened homebuyers’ confidence − Low and declining supply of new units Grade A office leasing market stay active and rents to remain firm if not higher, partic
Slide 16: Prospects
Prospects Benefit from the positive outlook for core property business in Hong Kong given our − Strong brand allowing for premium pricing − Sizeable land bank − Large agricultural land reserves Actively pursue land acquisition opportunities in Hong Kong through various means Positive rent reve
Slide 17: Prospects (Cont'd)
Prospects (Cont’d) Disposal of non-core investment properties to enhance asset turnover and shareholders’ return Active and continuous expansion into China as a long- term growth driver − Develop landmark projects in prime cities − A balanced portfolio of residential for sale and rental properti
Slide 18: Thank you
SUN HUNG KAI PROPERTIES Thank you www.shkp.com
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