CK Asset’s first-half profit falls 26% amid Hong Kong property market challenges

Profit falls to HK$6.3 billion (US$806.4 million) in the first half, below analysts’ expectations of about HK$14.2 billion

CK Asset Holdings, one of the flagship companies owned by billionaire Li Ka-shing’s family, reported weaker-than-expected first-half profit amid a challenging housing market in Hong Kong and declining rental income from its commercial properties.

Profit attributable to shareholders fell 26.2 per cent to HK$6.3 billion (US$806.4 million) in the six months to June, according to a filing to the Hong Kong stock exchange on Thursday. The earnings were way below analysts’ expectations of about HK$14.2 billion polled by Bloomberg. Revenue grew 15.34 per cent to HK$25.39 billion.

Earnings per share dropped to HK$1.8 from HK$2.44.

CK Asset’s property sales in Hong Kong came in at HK$2.8 billion, compared with HK$2.6 billion a year earlier on rising presales. But profit fell sharply to HK$74 million from HK$1.04 billion a year earlier. The gain included sales of half of the completed units in phase one of The Coast Line in Yau Tong.