New World's first-half profit rises 29 per cent, propelled by surging home sales in Hong Kong's property bull market

New World Development, Hong Kong's fourth-largest developer by value, posted the biggest jump in interim earnings in two years, propelled by rising home sales in the first half of its financial year, as it cleared unsold property off its books before a proposed vacancy tax takes effect.
The developer's core profit, excluding revaluation gains on investment properties, rose 29 per cent to HK$5.4 billion (US$687.49 million) in its first half ended December, according to a statement to the Hong Kong Stock Exchange. Sales soared 76 per cent to HK$49.27 billion, beating the HK$34.91 billion consensus in a Bloomberg survey of analysts.
"The property development segment recorded a 202 per cent increase in revenues," said New World's Chairman Henry Cheng Kar-shun in a stock exchange filing. "It was mainly due to our visionary sales strategies in Hong Kong during the second quarter in 2018, which significantly enhanced the booking contribution from property development."
ADVERTISEMENT
New World declared an interim dividend of 14 Hong Kong cents per share, the same as last year. The company's shares fell as much as 1.2 per cent in an advancing market to HK$12.74 before earnings were announced and recently changed hands at HK$12.84.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.