SHKP Positions for Interest-Rate-Cut Cycle with New Housing Projects Amid 20% Profit Drop

SHKP prepares numerous housing projects in Hong Kong to take advantage of decreased interest rates

The biggest developer in Hong Kong by market value reported a 20 per cent decrease in net profit, totalling HK$19.04 billion (US$2.44 billion) for the fiscal year ending in June.

Sun Hung Kai Properties (SHKP), the biggest property developer in Hong Kong by market value, plans to introduce several housing projects in the coming 10 months. The company is positioning itself to benefit from the "cycle of interest rate reductions".

The initiatives encompass the initial stage of Cullinan Sky in Kai Tak, a fresh building at The Yoho Hub II in Yuen Long, a collaborative effort on Prince Edward Road West in Ho Man Tin, the subsequent stage of Yoho West in Tin Shui Wai, and the premier stage of Sai Sha close to Ma On Shan, as stated by the firm on Thursday.

The group is strategizing to initiate new rounds of collaborative projects on the mainland. These projects include Lake Geneve in Suzhou, Hangzhou IFC, and Oriental Bund in Foshan.

The blueprint was revealed when the developer announced a 20% drop in net earnings to HK$19.04 billion (US$2.44 billion) for the year concluding on June 30, down from HK$23.90 billion the previous year.

Earnings from real estate transactions hit HK$7.85 billion, marking a 30.5 per cent drop from HK$11.29 billion the previous year. The company reported approximately HK$37.5 billion in finalized sales in the most recent fiscal year, as stated in their submission to the Hong Kong stock exchange on Thursday.