HONG KONG: Wharf Holdings’ FY2014 results were below expectations with China property development the key source of disappointment.
According to a research note from Barclays, underlying net profit declined by 32% y/y to HK$8,247mn and missed Barclays’ HK$10,708mn forecast.
Included in the results was HK$1,998mn of impairment provisions for China development projects. Excluding the provisions, Wharf’s core earnings declined by 7% y/y to HK$10,474mn.
By segment, China development was the main source of disappointment as margin compression and impairment charges more than offset the continued strength of Wharf’s rental operations.
