SHUN TAK HOLDINGS LIMITED (Incorporated in Hong Kong with limited liability) (Stock code: 242)
website: http://www.shuntakgroup.com
Financial Highlights | |||
2015 (HK$'000) | 2014 (HK$'000) | Difference (%) | |
Revenue | 4,405,312 | 9,538,561 | 54% |
Profit attributable to shareholders | 744,670 | 4,452,909 | 83% |
Profit attributable to shareholders (excluding revaluation effect) | 548,303 | 2,576,746 | 79% |
Earnings per share (HK cents):
| 24.5 24.5 | 147 143.5 | 83% 83% |
(March 23, 2016 - Hong Kong) Shun Tak Holdings Limited ("Shun Tak" or "the Group"; stock code: 242) announced today its annual results for year 2015, posting HK$4,405 million in revenue (2014: HK$9,539 million) and HK$745 million in operating profit attributable to shareholders, which represents a 83% decrease year-on-year. Excluding revaluation surplus, profit attributable to shareholders is HK$548 million, representing a 79% decline. The Board of Directors recommended a final dividend of HK2.0 cents per share (2014: a final dividend of HK2.0 cents per share and a special dividend of HK14.5 cents per share).
"2015 has been a challenging year. However, despite shrouded with downside macro risks, the Group has posted resilient results from its well balanced portfolio. It is also in a healthy financial position, allowing it to readily capture potential opportunities which may arise in the future. As we enter 2016, we will focus on the execution of new
projects along the pipeline in order to build new impetus for growth into the future." Ms. Pansy Ho, Managing Director of the Group remarked.
Considerable downside risks have loomed over the property market in 2015, as China's economy decelerated and dampened investment confidence. Other concerns, which include hiking interest rates and stock market fluctuations, also affected outlook for the real estate sector. Amid such challenges, the property division posted a profit of HK$383 million (2014: HK$2,487 million).
In Macau, the Group has achieved solid sales for Nova Park with 118 residential units sold in the year, bringing cumulative number of units sold to 98% of all available units. The average transacted price on gross floor area was HK$11,300 per square foot. Income generated from the majority of these units will be recognized in 2017.
Nova City Phase 5, the last phase of the Nova City collection, will comprise over 2.3 million square feet of residential units in eight towers, with direct connection to Macau's largest lifestyle shopping mall. Foundation works have been completed and superstructure works have commenced with project completion scheduled for late 2018. The Group is planning to commence pre-sale of residential units within 2016.
In Hong Kong, five luxurious residential houses each with its standalone street number making up the Chung Hom Kok Collection were officially launched in February 2016. The houses range from 4,374 to 6,615 square feet in saleable area, and are all equipped with private pools and interior elevators.
In China, a number of mixed-use projects are progressing well.
Beijing Tongzhou Integrated Development, a complex comprising approximately 288,800 square meters of retail space, 200,000 square meters of office, and 130,000 square meters of serviced apartments, is expected to complete in 2018.
Shun Tak Tower, another project in Beijing near East 2nd Ring Road, which offers approximately 21,400 square meters of office space and 17,500 square meters of hotel, is currently undergoing fit-out. Office leasing is well underway, while the hospitality component is scheduled for completion in the first half of 2017.
The Hengqin Integrated Development project, located immediately at the border connecting Hengqin and Macau, has a site area of 23,834 square meters, atop of which approximately 42,300 square meters of office, 39,000 square meters of retail, 16,600 square meters of hotel and 32,700 square meters of serviced apartments have been planned. Foundation works are in progress and the occupation permit is expected to be obtained in 2019.
In April 2015, the Group agreed to acquire a hotel property in Shanghai as part of the Shanghai MixC integrated commercial development project, at a consideration of approximately RMB700 million. The property will be operated by the Group's hotel management subsidiary, Artyzen Hospitality Group ("AHG"), to extend two hotel product offerings. Operation is expected to commence in the first quarter of 2018.
The transportation division generated consistent earnings in year 2015 despite lackluster tourism performance across Hong Kong and Macau. While TurboJET's flagship Hong Kong-Macau ferry routes recorded a marginal 2% decline in total passenger throughput at 14 million, the business was able to reap improved yield, as a result of lower fuel costs and enhanced product diversification. The division concluded the year with an encouraging gain of 51% in profit at HK$356 million (2014: HK$236 million).
Over the past years, TurboJET has undertaken a number of initiatives to upgrade its fleet and terminal facilities while introducing various value-adding services to create new demands in luxury sea travel. These have proven to be popular enhancements, as demand for Premier Grand class service registered a 26% growth year on year, representing the best-performing segment. SkyPier continued to be well received by international travelers and serviced 2.9 million passengers in 2015, representing a 3.7% year-on-year improvement.
In October 2015, TurboJET was awarded the management contract of Hong Kong Tuen Mun Ferry Terminal through an open tender, the fourth port operation under its management. The facility commenced operation in January 2016 with routes to Macau and Shenzhen Airport. Lying at the heart of the Pearl River Delta maritime
network and supported by a well-established local transportation system, Tuen Mun Ferry Terminal has strong potential to grow into a transportation centre.
After years of robust growth in Hong Kong and Macau's tourism industry, the trend reverted in 2015 with the subdued performance attributable to a decline of Mainland visitors under the effect of depreciating Renminbi and intense competition from rival destinations. Despite the challenging environment, the hospitality division registered HK$95 million (2014: HK$92 million) in profit, representing a 3% year-on-year increase, as AHG, the Group's hotel management arm, began to move beyond planning stage and took on new hotel management contracts.
In terms of hotel performance, Hong Kong SkyCity Marriott Hotel posted an annual average occupancy rate of 85%. In Macau, Grand Coloane Resort and Mandarin Oriental, Macau recorded 62% and 44% in occupancy rate respectively.
AHG is currently providing non-branded hotel management solutions to two properties in Macau, namely, Grand Lapa Hotel and Grand Coloane Resort. It has also signed management contracts with a number of properties, to operate under AHG's own brands. These include a 267-room citizenM hotel in Ximending Taipei with expected launch in 2017; a 188-room Artyzen Habitat hotel and a 303-room citizenM hotel in Shanghai MixC, slated for 2018 opening; a 300-room Artyzen Hotel and Resort, and a 350-room Artyzen Habitat hotel as part of Shanghai Lingang New City, scheduled to open in 2021.
The investment division recorded a profit of HK$278 million (2014: HK$379 million), dragged by an anticipated decline in dividend payout from Sociedade de Turismo e Diversões de Macau, S.A. ("STDM"), as Macau's gaming performance has been eroded by a drop in spending from PRC visitors.
Kai Tak Cruise Terminal's two largest commercial spaces have become operational by early 2015 to complement the development of cruise business. As of 31 December 2015, 87% of retail space has been successfully leased and a total of 90 berth bookings have been received for year 2016 as of March 2016.
Shun Tak Holdings Limited issued this content on 23 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 March 2016 10:48:49 UTC
Original Document: http://www.shuntakgroup.com/images/pressrelease/shun_tak_annual_results_2015_press_release_english.pdf
