Henderson Land Development's underlying profit rose by 66% in the first half of the year.

On August 21, Henderson Land Development announced its 2026 interim results, with underlying profit rising 66% year on year. A number of major financial institutions pointed out that the results exceeded market expectations. The stock price gapped up 3.62% at the opening today, and is now quoted at HK$30.18, up 7.1%, with a trading volume of 11.5199 million shares and a transaction value of HK$345 million.

Henderson Land recorded HK$18 billion in property sales in the first half of the year, up 145% year on year, and its net debt decreased by HK$5.5 billion over the six-month period.

Citi released a report stating that the results have strengthened its confidence in the company's profit rebound and deleveraging. It raised Henderson Land's 2026 to 2028 profit forecasts by 20% to 24%, maintained the Buy rating, and raised the target price from HK$34.2 to HK$34.6.

The performance improvement benefited from strong property sales and better operating margin of developed properties, which reached about 14% in the first half of the year, and is expected to return to a high double-digit percentage in the second half of the year.

In terms of Hong Kong's leasing business, the office and retail rents at the International Financial Center have increased by about 10%, and the new Central Harbourfront project is expected to start contributing revenue in the second half of 2027.

The resumption of agricultural land in the Northern Metropolis Area has been accelerated, providing an additional source of profit and cash flow.

This article is sourced from Viewpoint, and 36Kr publishes it with authorization.