K. Wah International Posts 2% Profit Dip; Chairman Cautiously Optimistic on HK-Mainland Property
SingTao · 1 SOURCESabout 1 hour ago3 MIN
Summary
K. Wah International Holdings Limited (stock code: 173) announced its interim results for the six months ended June 30, 2024. The group reported core profit of HK$97 million, representing a 2% decline compared to the same period last year, while the board maintained the interim dividend at HK$0.02 per share . Despite the profit contraction, revenue surged 270% year-on-year to HK$4.932 billion, with combined revenue including joint ventures and associates reaching HK$7.471 billion, up 4% year-on-year . The strong revenue performance was primarily fueled by property sales at Shanghai Jade Residence and rental income from Shanghai K. Wah Centre . Hotel and serviced apartment rental income contributed approximately HK$350 million, marking a 2.7% increase year-on-year . Chairman Lui Yiu-tung stated that amid ongoing external challenges, the Hong Kong and mainland China property markets continue to demonstrate resilience, and he maintains a cautiously optimistic outlook on the medium-to-long-term development of both markets .
Key Points
- K. Wah International reported core profit of HK$97 million for H1 2024, down 2% year-on-year, while maintaining the interim dividend at HK$0.02 per share
- Group revenue surged 270% year-on-year to HK$4.932 billion, driven by Shanghai Jade Residence sales and Shanghai K. Wah Centre rental income
- Signed attributable sales reached approximately HK$6.1 billion from Ocean Odyssey, Kai Tak Harbour, and Grand Marine projects, with unrecognized attributable sales of HK$5.6 billion as of end-June
- The net debt ratio dropped significantly to 9%, down 8 percentage points from end-2023, reflecting effective balance sheet management
- Chairman Lui Yiu-tung expressed cautious optimism about the Hong Kong and mainland China property markets, noting sustained resilience and stable demand for housing
Why It Matters
The results demonstrate K. Wah International's ability to maintain financial discipline while navigating challenging market conditions. The substantial 8-percentage-point reduction in the net debt ratio, combined with cash reserves of HK$7.3 billion and undrawn banking facilities of HK$18.7 billion, positions the group well to capitalize on investment opportunities as market conditions improve . Chairman Lui's positive assessment of the Hong Kong and mainland China property markets, citing stable demand for both entry-level and upgrade housing, provides a vote of confidence in the sector's recovery trajectory amid global economic uncertainties .
The results demonstrate K. Wah International's ability to maintain financial discipline while navigating challenging market conditions. The substantial 8-percentage-point reduction in the net debt ratio, combined with cash reserves of HK$7.3 billion and undrawn banking facilities of HK$18.7 billion, positions the group well to capitalize on investment opportunities as market conditions improve . Chairman Lui's positive assessment of the Hong Kong and mainland China property markets, citing stable demand for both entry-level and upgrade housing, provides a vote of confidence in the sector's recovery trajectory amid global economic uncertainties .