Shun Ho Property posts narrower HK$45.90 million interim loss as fair-value hit on investment properties subsides

Bulletin Express
09/28

Shun Ho Property Investments Limited reported a consolidated net loss attributable to shareholders of HK$45.90 million for the six months ended 30 June 2026, a 66.8% improvement from the HK$138.18 million loss a year earlier. The turnaround was driven chiefly by a smaller revaluation deficit on investment properties of HK$68.29 million versus HK$154.80 million in the prior-year period.

Group revenue edged up 1.5% year on year to HK$339.37 million. Hotel operations remained the core contributor, rising 5.1% to HK$281.83 million on an average occupancy rate above 90%. Property rental income fell 13.3% to HK$57.49 million as office rents at 633 King’s Road and Shun Ho Tower declined 24% to HK$29 million amid a subdued office market and lower import-export activity.

Hotel segment operating profit surged to HK$34.28 million from HK$9.35 million, reflecting higher room yields and tighter cost controls at the group’s nine hotels—seven in Hong Kong, one in Shanghai and one in London. Magnificent Hotel Investments Limited, 71.09% owned by the group, swung to a HK$14.40 million net profit from a HK$15.20 million loss, aided by stronger revenue, lower financing costs and reduced revaluation losses.

Group administrative expenses rose 7.8% to HK$32.59 million, while finance costs dropped 28.8% to HK$16.98 million following loan repayments and lower interest rates. The effective tax charge increased to HK$17.75 million from HK$12.48 million.

Total assets stood at HK$9.21 billion at 30 June 2026, with investment properties valued at HK$4.27 billion and property, plant and equipment of HK$4.49 billion. Net debt declined to HK$0.82 billion, keeping the group’s gearing ratio stable at 10%. Cash and bank balances improved to HK$351.91 million after generating HK$125.95 million in operating cash flow.

Given persistent pressure on Hong Kong office rents, absence of cash dividends from Magnificent Hotel, and a term loan maturing in 2027, the board did not declare an interim dividend, consistent with the prior year.

Looking ahead, management flagged continued headwinds from muted mainland Chinese tourist spending, regional geopolitical risks, and soft office demand. The group will focus on cost discipline, occupancy optimisation across its hotel portfolio, and progressing the refurbishment of the 216-room Wood Street Hotel project in London.

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