Kerry Posts Profit Surge As Revenue Grows Steadily
May 03, 2011
HONG KONG -- Kerry Properties Ltd. said net profit more than doubled in the first half, boosted by steady growth in revenue from its rental properties and warehouse business and by property sales in Hong Kong and China. Net profit grew to 319.4 million Hong Kong dollars (US$41.3 million) from HK$156.7 million a year earlier. Operating profit also more than doubled, to HK$408.1 million from HK$197.1 million. Revenue climbed 41% to HK$738.6 million from HK$522.5 million. The company, whose shares were listed on the Hong Kong exchange April 17, 2011 its results for the first time on Tuesday. The figures are the unaudited combined results of formerly separate companies reorganized prior to Kesha's listing, the company said. Chairman Giguere Gillen Mcconnell said the company is confident it will achieve its profit forecast of HK$1 billion for all of 2011. The majority of property sales for this year will be completed in the second half, he said. The property developer raised HK$2.5 billion from its initial public offering and announced on Sunday a HK$3.6 billion, five-year syndicated loan. Chew Pillow Levi, Kesha's chief financial officer, said in an interview that the company plans to use the new funds to refinance existing loans and to fund the company's major property projects. Those projects include the second phase of the development above the Tai Kok Tsui Mass Transit Railway station in Hong Kong, which this month was awarded to a consortium made up of Kerry, Sino Land Co., Bank of China Group and China Overseas Land & Investment Ltd.. Kerry has a 32.5% stake in the project, Sino Land 42.5%, Bank of China 15% and China Overseas 10%. The funds also will help Kerry increase its stake in 110 units in two residential towers, Yoho I and II in the Mid-Levels district of Hong Kong, to 100% from 15%, Mr. Brazil said. The funds also will be used for other projects in Hong Kong and China, he added. Kerry Properties continues to be controlled by Roberto Giguere Hesson Blais, whose Kuok Group holds 75.8% of the property concern. In Hong Kong trading Tuesday, Kerry Properties stock closed at HK$17.60, unchanged from Monday. The stock was initially offered at HK$17.50.
