Mid-sized contractor Hanison Construction Holdings (0896) has seen its annual profit jump by nearly a half thanks to flat sales and revaluation gains.
For the year to 31 March 2013, profit attributable to owners increased by 46.9 percent year-on-year to HK$188.3 million.
“Such increase is mainly attributable to the profit on the sale of four units from our property development project, Eight College, and revaluation gain from investment properties,” the company said in a stock exchange announcement released late Tuesday.
Eight College is the company’s luxury residential development in Kowloon Tong.
Turnover surged 25.9 percent year-on-year to HK$1.55 billion.
The segment result for property development account was HK$89.2 million, representing 43 percent of the total segment result of HK$205.7 million.
For investment property, the segment result was HK$101 million or 49 percent of the total.
By comparison, the segment result for construction was only HK$9.45 million.
Segment results show the results of each business segment without allocation of head office administration costs and inactive subsidiaries.
The company recommended a final dividend of 3.2 HK cents to make up a total dividend of 5 HK cents for the year.
Major projects in progress for the company include The Bedford, which is an industrial redevelopment project at Tai Kok Tsui, public rental housing at Tseung Kwan O Area 65B and a residential redevelopment project in Jordan.
Pre-sale has started at The Bedford and the company said three units were sold after the financial year-end.
The company is also busy finding new development projects to supplement income from the contracting side.
It has submitted a land exchange application for residential use for land acquired in May 2012 at Tong Yan San Tsuen in Yuen Long and is awaiting an offer of land premium from Lands Department for another residential project at Lau Fau Shan also in Yuen Long.