Hong Kong property companies disappoint with their China development earnings

HK Land is the only exception.

It has been noted that with the exception of HK Land which saw contract sales rise, most of the other Hong Kong property companies have reported disappointing China development earnings.

According to a research note from Barclays, for Cheung Kong, SHKP, and NWD, China development contributions had fallen some 55-77% y/y.

Barclays noted that the Hong Kong property companies’ reporting season is now two-thirds complete
with 10 out of 15 companies having reported.

Here's more from Barclays:

Of the 10 companies that have reported thus far, two have come in below our expectations.

At the segmental level, China development profits have generally disappointed whether it was with New World China Land’s 55% decline in earnings, SHKP’s 77% y/y decrease in China development profit or Cheung Kong’s 63% drop in Mainland China revenues.

The only exception so far has been with Hongkong Land where recognized development revenue was higher (increased to US$621mn from US$451mn) and contract sales achieved in the year was flat at US$635mn.