China sales are equally good.
According to Nomura, HKL’s FY12 results came in slightly ahead of expectations. The underlying profit rose 10% y-y to USD777mn, 11% ahead of the firm's and consensus estimates of USD701mn.
The USD76mn positive surprise could be attributable to higher-than-expected rental income (+USD14mn, and 2% ahead), lower corporate expenses (+USD15mn, 20% better), contribution from associated companies (+USD24mn, 17% ahead), and financing cost (+USD22mn).
Here's more from Nomura:
Full-year dividend was raised by 6% to USD0.17 per share, 3% above our USD0.165 estimate.
Positively, HK Land has continued to make good progress on both its SG and China development projects. Launches in SG have continued to enjoy good take up with Ripple Bay (completing in 2015) now 96% taken up.
For 2013, project launches are likely to include three projects while three projects are also slated for completion (i.e. Este Villa, The Estuary and Marina Bay Residences).
On the China front, contract sales reached USD429mn last year. Compared to USD213mn of revenue recognized in 2012, as contract sales continues to rise and project completions increase, contributions from China should continue to increase, in our view.
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