Friday, March 07, 2008

Sun Hung Kai posts strong profit growth in 2007

Sun Hung Kai Properties Ltd (SHK)<16>, the largest property developer in Hong Kong by market value, reported net profit excluding property revaluation soared 17% year-on-year to hit HK$6.2 billion (US$796 million) in the second half of 2007, strongly beating previous expectation.

The company contributed the growth to its sales and the surging rentals of commercial buildings and shopping centers in the city, said SHK in a filing with the Hong Kong Stock Exchange.

Profit from property sales advanced 14% from a year ago to exceed US$3.74 billion on wider development profit margins, and net rental earnings rose 12% to HK$2.94 billion, according to the statement.

The developer is quite confident in the outlook of Hong Kong's housing market despite the volatility of its neighboring economy and the fluctuation of the stock market. It plans to sell 2,000 apartment units in Hong Kong and 1,000 units in mainland China in 2008, with a combined value of HK$23 billion, said Eric Chow, an executive director at SHK.

Its shares finished up 2.0% to HK$132.7 on Thursday in Hong Kong.

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