Kerry Properties profit from property sales dropped 5% to $4.4b

Underlying profit also follows suit.

According to Barclays, Kerry Properties reported 2013 headline profit of HK$13.2bn. Excluding the revaluation gain (net of related tax effect) of HK$4.4bn and the gain from spin-off of Kerry Logistics Network (KLN) HK$4.3bn, the underlying profit dropped 6% y/y to HK$4,413mn.

It is 3% above our estimate of HK$4,303mn but 1% lower than Bloomberg consensus forecast of HK$4,460mn.

Here’s more from Barclays:

By segment, the rental income and hotel income rose 14% y/y HK$1,574mn while the gross profit from property sales dropped 5% y/y to HK$4,483mn.

In 2013, Kerry achieved HK$10.7bn in contract sales with HK$5.5bn from Hong Kong and HK$5.2bn from China. Looking ahead, Kerry expects some pickup in the Hong Kong property market while the outlook for China market remains uncertain.

The company set the contract sales target of HK$12.0bn for 2014 with HK$6.5bn for Hong Kong and HK$5.5bn for China. So far, Kerry has sold 97 units at Summa (58% of total 168 units) in Hong Kong with total HK$1.8bn sales proceeds.

Both the Ede Road and LaSalle Road projects are scheduled for launch in1H14 while the KauTo Shan project is scheduled for 2H14.