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3 Things That Investors Should Know About Hongkong Land Holding Limited FY17 First Half Result

Hongkong Land Holdings Limited (SGX: H78) is one of the companies related to the web of Jardines companies which include Jardine Strategic Holdings Limited (SGX: J37), Jardine Cycle & Carriage Ltd (SGX: C07) , Dairy Farm International Holdings Ltd (SGX: D01), Mandarin Oriental Limited (SGX: M04) and Jardine Matheson Holdings Limited (SGX: J336).

The company recently reported its first-half FY17 results. In this article, we will look at three useful pieces of information from the announcement.

Overall result

Source: Hongkong Land FY17 First Half Result Announcement

As a whole, we see that Hongkong Land delivered improvement in all of the metrics above.

Breakdown of segmental profitability

            

Source: Hongkong Land FY17 First Half Result Announcement

The above is a quick overview of the performances of two main businesses within Hongkong Land, namely investment properties and development properties.

Investment properties – The improvement in profitability year-on-year was driven mainly by higher average rent in Hong Kong for both office and retail properties. This was slightly offset by marginally weaker average rent in Singapore.

Development properties – The improvement in profitability as compare to last year was driven by higher completion of residential units in mainland China and recognition of profit on Lakeville project in Singapore.

Furthermore, positive sentiments in China resulted in growth in contracted sales in the first half of 2017 as compared to the same period last year.

Outlook for FY17

Sir Henry Keswick, the group’s chairman, made the following comment about outlook:

The good performance of the Group’s investment property portfolio is expected to continue in the second half of the year, although the contribution from development properties will not benefit from further sales completions in Singapore.”

In other words, we might expect the positive performance for the first half to continue into the second half.

Conclusion:

Overall, a positive start for Hongkong Land with a strong performance across the board.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a buy recommendation for Hongkong Land and Dairy Farm.