Hong Kong property developer Cheung Kong Ltd has posted a 4-percent increase in profit for the first half of 2010, attributed to the rise in property sales increases.
The company’s profit rose to HK$11.9 billion (S$2.1 billion) from HK$11.5 billion, surpassing the HK$7.76-billion estimate of three analysts who surveyed by Bloomberg.
Cheung Kong has also recorded property sales of about HK$5.81 billion after home prices in Hong Kong surged 10 percent in the first half of 2010, and according to analysts, it may also record a higher profit from home sales in H2 as apartment units sold during the first half are completed.
Most Hong Kong developers normally start selling apartments while they are still under construction and record profits when they are completed.
"Cheung Kong has the biggest apartment inventory ready for sale among all developers," said Raymond Ngai, a HK-based analyst at JP Morgan & Chase Co who spoke to Bloomberg. "As long as the market stays strong they’re looking at a solid full year."