Feeble Recovery from COVID
The Wharf (Holdings) Limited
2023 Interim Results
9 Aug 2023
Results Highlights
- Mainland Property Market Still a Big Challenge
- Contracted Sales Dwindled with Average Selling Price in Decline
- Interest in Office Stock & En Bloc Sales is Particularly Soft
- Further Provision was Made for Slow-moving Stock
- Recovery Momentum for Retail Rent was also Below Strength
Overview
The Wharf (Holdings) Limited | 2023 Interim Results | 2 |
Core Strength - Premium Property
Total Assets
1H23: $215.5B
HK Prop 24%
ML Prop 39%
Hotels 1%
Logistics 7%
Inv. & Others 29%
Properties
64%
Group Revenue
1H23: $8.1B
HK Prop 1%
ML Prop 63%
Hotels 4%
Logistics 15%
Inv. & Others 17%
Properties
68%
Operating Profit
1H23: $3.1B
ML Prop 56%
Hotels 1%
Logistics 7%
Inv. & Others 36%
Properties
57%
Overview
The Wharf (Holdings) Limited | 2023 Interim Results | 3 |
Financial Highlights
- Slow ML & HK Recovery Dragged by Macro Concerns
- Currency Translation Understates YoY Comparison of ML Businesses in HKD
- Group Revenue -1% to $8.1B
- UNP +323% to $1.8B
- Incl. $1.0B Impairment Provision for Slow-moving MLDP Stock
- Interim DPS $0.20
HKD Million | 1H23 | 1H22 | %Chg. |
Group Revenue | 8,130 | 8,209 | -1% |
Operating Profit | 3,139 | 3,479 | -10% |
Underlying Net Profit* | 1,811 | 428 | +323% |
Attributable IP Revaluation (Deficit) After | (356) | (421) | -15% |
Taxation | |||
Profit Attributable to Equity Shareholders | 696 | 57 | +1,121% |
Earnings Per Share (HK$) | |||
- Attributable to Equity Shareholders | 0.23 | 0.02 | +1,050% |
- Underlying* | 0.59 | 0.14 | +321% |
Dividend Per Share (HK$) | 0.20 | 0.20 | Flat |
*Underlying Net Profit - Excl. IP Revaluation Deficit & Exceptional Items
Overview
The Wharf (Holdings) Limited | 2023 Interim Results | 4 |
Strong Financial Position & Liquidity
- Total Equity $149.7B; Net Debt $15.0B
- Gearing 10.1%
- Liquid Long Term Investments
- $45.1B Liquid Listed Equities MV
- $1.2B Div. Income Booked to P&L
- $12.1B+ Realized Net Disposal Surplus & Div. Income since 2018
HKD Billion | 30 Jun 23 | 31 Dec 22 | % Chg. |
Total Assets | 215.5 | 221.7 | -3% |
Investment Properties | 67.4 | 69.2 | -3% |
Development Properties* | 66.6 | 69.4 | -4% |
Other Long Term Investments | 53.1 | 48.9 | +9% |
Net Debt | 15.0 | 5.3 | +183% |
Net Debt to Total Equity | 10.1% | 3.4% | +6.7 ppts |
Total Equity | 149.7 | 155.7 | -4% |
Shareholders' Equity | 145.6 | 151.6 | -4% |
Net Asset Value per Share (HK$) | 47.65 | 49.60 | -4% |
* Inclusive of JVs & Associates on an Attributable Basis
Overview
The Wharf (Holdings) Limited | 2023 Interim Results | 5 |