Shui On shares notch biggest weekly gain after profit beat forecast, even if outlook is modest
Shui On increasingly rely on selling equity interests in specific projects to local developers
Shares of Shui On Land, the Hong Kong developer that owns the landmark Shanghai shopping and entertainment district Xintiandi, jumped by their most in a week, after its 2017 profit and sales revenue beat forecasts.
Net profit under general accounting rules more than doubled to 2.24 billion yuan, while its adjusted figure declined 31 per cent to 925.75 million yuan last year. Sales revenue rose 5 per cent to 18.45 billion yuan (US$2.9 billion), according to Shui On’s filings to the stock exchange, beating estimates by 3.4 per cent.
Excluding a revaluation gain on investment properties, Shui On posted 3.15 billion yuan in core earnings.
The company has benefited from the booming property market in mainland China in 2016, when a year of unrestrained growth had cause prices to surge, forcing local authorities to impose administrative and lending policies to prick the real estate bubble.
Shui On shares rose as much as 1.8 per cent to HK$2.23, their biggest intraday gain since March 14.
