Sun Hung Kai & Co. Ltd. expects a year-over-year decline in profit for the 2016 full year, but an increase of more than 50% in profit based on continuing operations.
The company said Jan. 23 that its profit attributable to owners for 2016 will be lower than in 2015 given a nonrecurring gain from a stake sale in the prior-year period.
In 2015, the company's attributable profit of HK$3.90 billion included a nonrecurring gain from the sale of a 70% stake in Sun Hung Kai Financial Group Ltd. and its 100% profit contribution up to the date of sale amounting to HK$3.23 billion in aggregate.
However, based on continuing operations, the group expects attributable profit for 2016 to rise by more than 50% from HK$667.7 million in the prior year.
Sun Hung Kai also said that attributable profit for the second half is expected to be higher compared to the first half given the stronger performance of its principal investments, a recovery of credit quality in the consumer finance business and an increased contribution from its structured finance business.
The company expects to announce its audited full-year results in the second half of March.