Wharf (Holdings) Ltd. · HKEX:4
Wharf (Holdings) — The Wharf (Holdings) — H1 2022 Earnings Presentation
39 slides from Wharf (Holdings)'s earnings presentation, Aug 10, 2022
Slide 1: 2022 Interim Results
The Wharf (Holdings) Limited 2022 Interim Results 10 Aug 2022 Covid End Game Unknown
Slide 2: Overview
Overview | The Wharf (Holdings) Limited | 2022 Interim Results | 2 |
Slide 3: Results Highlights
Overview Results Highlights • During the Period, Business was Seriously Curtailed by Covid in both HK & Mainland − Negative: DP Bore the Brunt through Sales, Sales Recognition as well as Impairment Provisions − Negative: IP reported its First Reversal in Recent Years − Positive: Logistics • Group Re
Slide 4: Assets Focus – Premium Property
Overview Assets Focus – Premium Property Total Assets Group Revenue Operating Profit 1H22:$242.6B 1H22:$8.2B 1H22:$3.5B IP 31% IP 32% IP 51% DP 31% DP 32% DP 14% Hotels 1% Hotels 2% Hotels -1% Logistics 6% Logistics 19% Logistics 11% Inv. & Others 31% Inv. & Others 15% Inv. & Others 25% IP & DP IP &
Slide 5: Financial Highlights
Overview Financial Highlights HKD Million 1H22 1H21 YoY Chg. Group Revenue 8,209 12,337 -33% • 1H22 Business Curtailed by COVID-19 Operating Profit 3,479 4,301 -19% • Group Revenue: -33% to $8.2B Underlying Net Profit / (Loss)* 428 (360) +219% − Negative: DP bookings & IP Contribution Attributable I
Slide 6: Strong Balance Sheet
Overview Strong Balance Sheet HKD Million 30 Jun 22 31 Dec 21 % Chg. Total Assets 242,629 253,700 -4% Investment Properties 74,799 76,525 -2% • Total Equity $162B (-3% from Dec 21) Other Long Term Investments 54,825 52,902 +4% • Net Debt Decreased by $2.3B from Dec 21 Net Debt 10,877 13,186 -18% • L
Slide 7: Agenda – Hong Kong Properties
Agenda Mainland Development Properties Mainland Investment Properties Hong Kong Properties Hotels Logistics Infrastructure | The Wharf (Holdings) Limited | 2022 Interim Results | 7 |
Slide 8: Premium Landbank
Hong Kong Properties Premium Landbank • HK Land Bank*: 3.0M s.f. (GFA) − Luxury & Exclusive – Peak: 0.6M s.f. 11 Plantation Road Mount Nicholson − Kowloon Tong Project: 0.4M s.f. − Kowloon East Portfolio: 2.0M s.f. Peak Portfolio* • 1H22 Contracted Sales*: $0.3B (-95%) • Net Order Book*: $0.3B (Dec
Slide 9: Agenda – Mainland Development Properties
Agenda Hong Kong Properties Mainland Investment Properties Mainland Development Properties Hotels Logistics Infrastructure | The Wharf (Holdings) Limited | 2022 Interim Results | 9 |
Slide 10: Shifted Dynamics Against Developers
Mainland Development Properties Shifted Dynamics Against Developers 1H22 Contracted Sales* Sales RMB 2.3B -60% • Pandemic Drastically Slowed Down Selling Activities GFA 78,000 s.m. -64% & Construction − Particularly in Suzhou, Shanghai & Beijing ASP RMB 29,000 psm +16% • Market Illiquidity Magnified
Slide 11: 1H22 Operating Matrix
Mainland Development Properties 1H22 Operating Matrix 1H22 Operating Matrix* Revenue $4,991M -29% • Recognitions mainly from Suzhou & Hangzhou Operating Profit $609M -44% • MLDP Landbank Fell to 1.9M s.m Operating Margin 12% -3 ppt • 2022 Target Completion: 0.7M s.m • Net Order Book: RMB 14.8B or 0.
Slide 12: Agenda – Mainland Investment Properties
Agenda Hong Kong Properties Mainland Development Properties Mainland Investment Properties Hotels Logistics Infrastructure | The Wharf (Holdings) Limited | 2022 Interim Results | 12 |
Slide 13: COVID Control & Flagging Economy
Mainland Investment Properties COVID Control & Flagging Economy Mainland IP Revenue (HKD Billion) 1H 2H 5.4 • Shanghai Lockdown & COVID Control Hurt Economy 4.2 • First Reversal of MLIP Revenue in Recent Years 3.9 2.7 3.4 • Retail: Cautious Consumers Portray Slower Recovery 2.6 2.0 2.3 1.8 1.4 • Off
Slide 14: IFS – Top Productivity Nationwide
Mainland Investment Properties IFS – Top Productivity Nationwide • Comprehensive Tenant Mix, Top Choice for Shoppers CDIFS CSIFS • Double-digit Positive Retail Rental Reversion Occupancy (30 Jun 2022) CDIFS CSIFS • Sales & Turnover Rent Affected under Covid • Office Occupancy & Rent Under Pressure R
Slide 15: Agenda – Hotels
Agenda Hong Kong Properties Mainland Development Properties Hotels Mainland Investment Properties Logistics Infrastructure | The Wharf (Holdings) Limited | 2022 Interim Results | 15 |
Slide 16: Unfavourable 1Q
Hotels Unfavourable 1Q • Domestic Travel Curtailed by Covid & Lockdowns Niccolo Chengdu Marco Polo Wuhan • Recovery since 2Q has been Sporadic, Gradual & Unpredictable Since 2015 Since 1970s • Niccolo Hotels Continued Outperformance in Revenue Yield among Comp. Set Award-winning, Business Travel Bra
Slide 17: Agenda – Logistics Infrastructure
Agenda Hong Kong Properties Mainland Development Properties Logistics Infrastructure Mainland Investment Properties Hotels | The Wharf (Holdings) Limited | 2022 Interim Results | 17 |
Slide 18: Challenging Environment
Logistics Infrastructure Challenging Environment Modern Terminals (1H22) Revenue Operating Profit • Cargo Volume in South China Increased $1,540M (+13%) $394M (+42%) Throughput* (million TEUs) 1H22 vs 1H21 vs 1H19 • Yet, HK Lost Volume & Market Share Despite HK 2.3 -8% -8% Business Mix Improved DCB#
Slide 19: Financial Management
Financial Management | The Wharf (Holdings) Limited | 2022 Interim Results | 19 |
Slide 20: Prudent Financial Management
Financial Management Prudent Financial Management Debt Maturity (HKD Billion) Total: $29.3B (As at 30 Jun 22) • Net Debt Down to $10.9B (Dec 21: $13.2B) 8.0 • Gearing Down to 6.7% (Dec 21: 7.9%) 6.7 5.1 • Interest Cover: 11.5x 3.7 3.0 2.8 • Average Interest Cost: 2.1% (Blend of HKD & RMB) Jul-Jun 20
Slide 21: Project Pipeline
Project Pipeline | The Wharf (Holdings) Limited | 2022 Interim Results | 21 |
Slide 22: Project Pipeline
Project Pipeline Project Pipeline HK Prop MLIP • 1 Plantation Road • CSIFS Tower 2 • Kowloon Tong Site − Prestigious High-rise Apt − Park Hyatt Plus Another Hotel to be Announced • Kai Tak Site (30%-JV) | The Wharf (Holdings) Limited | 2022 Interim Results | 22 |
Slide 23: Outlook
Outlook | The Wharf (Holdings) Limited | 2022 Interim Results | 23 |
Slide 24: Outlook
Outlook Outlook • Uncertain Global Economy: − Quantitative Tightening, Interest Rate Hikes, Inflation Risk & Geopolitical Tension − Economic & Political Fundamental Paradigm Shift Adds Fuel to Inflation Fire • Mainland China: − Global Supply Chains Restructuring May Weaken Demand for China’s Product
Slide 25: Sustainability
Sustainability | The Wharf (Holdings) Limited | 2022 Interim Results | 25 |
Slide 26: ESG Recognitions
Sustainability ESG Recognitions • Constituent of Hang Seng Corporate Sustainability Index and Maintains a “AA” Sustainability Rating • Constituent of Hang Seng ESG 50 Index as One of the Top 50 ESG leaders in HK • CSR Index Plus Mark • 10 Years Plus Caring Company Logo • Social Capital Builder Logo
Slide 27: Highlights
Sustainability Highlights • LEED Platinum – Chengdu IFS, Changsha IFS LEED Gold – Wuxi IFS, Shanghai Wheelock Square • EarthCheck Gold Certified – Niccolo Chengdu EarthCheck Silver Certified – Niccolo Changsha, Niccolo Chongqing, Marco Polo Wuhan • Reduced Scope 1 CO2 Emissions* by 25% • Reduced Gen
Slide 28: Appendix
Appendix | The Wharf (Holdings) Limited | 2022 Interim Results | 28 |
Slide 29: Summary of HK Properties
Appendix Summary of HK Properties Portfolio Usage Status Locations Attributable GFA (s.f.) 1. Peak Portfolio Residential Development No. 2-8 Mansfield Road 259,300 Planning No. 9,11 Mansfield Road (50%-JV) 72,500 Sales Mount Nicholson (50%-JV) 23,000 77/79 Peak Road 11,000 Lease Chelsea Court 43,000
Slide 30: Mainland Contracted Sales Breakdown by City
Appendix Mainland Contracted Sales Breakdown by City Region City Contracted Sales (%) GFA Sold (%) Eastern China Shanghai 6.2% 2.6% Suzhou 14.6% 19.9% Wuxi 0.6% 6.0% Hangzhou 57.7% 38.2% Eastern China Sub-Total 79.1% 66.7% Western China Chengdu 0.9% 1.4% Chongqing 2.5% 6.5% Western China Sub-Total 3
Slide 31: 1 Project Launched in 1H22
Appendix 1 Project Launched in 1H22 Attributable Proceeds Attributable Average Price Projects City (RMB M) GFA sold (s.m) (RMB psm) Ownership CSIFS Apartments 長沙國金中心公寓 Changsha 149 3,615 41,300 100% | The Wharf (Holdings) Limited | 2022 Interim Results | 31 |
Slide 32: Mainland Key Projects on Sales in 1H22
Appendix Mainland Key Projects on Sales in 1H22 Attributable Proceeds Attributable Average Price Projects City (RMB M) GFA sold (s.m) (RMB psm) Ownership Parc Regal 杭州天璽二期 Hangzhou 894 16,000 55,900 100% Luxurious Mountain View 杭州雍景山 Hangzhou 342 12,800 24,800 100% Changsha IFS Apartments 長沙國金中心公寓 C
Slide 33: Mainland DP Land Bank Breakdown by City
Appendix Mainland DP Land Bank Breakdown by City Region City GFA million (s.m) % Total Eastern China Suzhou 0.37 19% Hangzhou 0.33 17% Eastern China Sub-Total 0.70 36% Western China Chengdu 0.60 31% Chongqing 0.03 1% Western China Sub-Total 0.63 32% Southern China Foshan & Guangzhou 0.15 8% Northern
Slide 34: Mainland Key Projects Completion
Appendix Mainland Key Projects Completion Projects Attributable GFA (s.m) Key Completion in 1H22 Suzhou Yangcheng Lake Lot 27 蘇州天曦 75,600 Suzhou Villa One (Huayuan Road Lot 78) 蘇州天灝逅灣雅苑 66,800 Hangzhou Luxurious Mountain View 杭州雍景山 30,600 Chengdu ICC 成都環貿廣場 29,300 Suzhou Loral Mansion 蘇州山水樾瀾庭 24,300
Slide 35: Mainland IP – Different Series
Appendix Mainland IP – Different Series Times Square IFS & Times Outlets Project Total GFA * Year of Total GFA * Year of Property Nature (s.m.) Completion Property Project Nature (s.m.) Completion Times Square Mixed-use IFS Complexes Chongqing ** O/R 55,000 2004 Chengdu R/O/S.A/ H 603,000 2013-2016
Slide 36: Wharf Hotels Management
Appendix Wharf Hotels Management Niccolo (Since 2015) Hong Kong Mainland − The Murray, Hong Kong, a Niccolo Hotel* − Niccolo Chengdu − Niccolo Changsha − Niccolo Chongqing# − Niccolo Suzhou* Marco Polo (Since 1970s) Hong Kong Mainland+ Philippines − Marco Polo Hongkong Hotel* − Marco Polo Parkside,
Slide 37: Overview of Application of Funds
Appendix Overview of Application of Funds Major Capital & Development Expenditure 1H22 2H22 HKD (Actual) (Projected) Hong Kong Properties 1.4B 3.5B Mainland China IP - 0.4B Mainland China DP 1.1B 2.8B Others 0.1B 1.1B Total 2.6B 7.8B | The Wharf (Holdings) Limited | 2022 Interim Results | 37 |
Slide 38: Thank You
Thank You Covid End Game Unknown | The Wharf (Holdings) Limited | 2022 Interim Results | 38 |
Slide 39: End of Presentation
End of Presentation The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute our judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries