Hong Kong Ferry (Holdings) Company Limited – 2025 Annual Results Detailed Report

Key Financial Highlights

• Profit Surge: The Group recorded a profit of HK\$335 million for the year ended 31 December 2025, representing an impressive increase of approximately 109% compared to last year. This surge was mainly driven by a one-off construction cost adjustment related to the completion of the joint venture development project, “The Royale”.
• Underlying Profit: Underlying profit reached HK\$284 million, up by around 80% year-on-year.
• Earnings Per Share: EPS doubled to HK\$0.94 (2024: HK\$0.46), reflecting substantial improvement in shareholder returns.
• Dividend: Total distribution for the year is HK25 cents per share (HK10 cents interim and HK15 cents final), with the final dividend subject to shareholder approval at the AGM. Dividend payments are unchanged from last year.
• Revenue: Total revenue was HK\$427 million, a slight increase of about 1% from 2024, primarily due to gains in medical aesthetics and investment properties offset by reduced shipyard and related operations income.
• Valuation Gains: Valuation gains on investment properties ballooned to HK\$50.3 million (2024: HK\$2 million), a significant contributor to profit.
• No Borrowings: The Group had no borrowings, maintaining a solid financial position and zero gearing ratio.
• Consolidated Net Assets: Net assets rose to HK\$7,310 million (up 3.6%), reflecting robust balance sheet strength.

Business Segment Performance

• Property Investment: Gross rental income from shops, commercial arcades, and youth hostel was HK\$147 million (+17%). Key properties such as Metro6, The Spectacle, Shining Heights, and Metro Harbour Plaza enjoyed high occupancy rates (ranging from 81% to 98%). The Group completed acquisition of shops at Tai Hung Fai (Tsuen Wan) Centre, improving rental yields via property enhancements.
• Ferry, Shipyard, and Related Operations: This segment reported a loss of HK\$8 million. Despite a successful fare increase in January 2024, increased operating expenses and reduced traffic volume persisted. The Group applied for another fare hike in September 2025. Hong Kong Shipyard revenue dropped by 12% due to fewer ship registrations and competition from Mainland services. Diversification strategies, including partial land use conversion, are underway.
• Medical, Healthcare, and Beauty Services: Losses narrowed significantly to HK\$4 million (down 84%), showing signs of imminent profitability. Expansion included new spine and pain centres under “Total HealthCare”, and a third branch at Tai Hung Fai (Tsuen Wan) Centre. AMOUR medical aesthetic centre expanded at Mira Place and received the “Hong Kong Emerging Service Brand” award, enhancing brand reputation and service quality. The specialist centre at H Zentre, now “Alliance Medical Centre”, recorded profit and partnered with a fitness centre for physiotherapy services. Medical equipment leasing business launched, generating stable revenue.

Strategic and Financial Review

• Investment Strategy: The Group’s diversified businesses (property, ferry, medical) complement each other, mitigating risks and strengthening long-term competitiveness.
• Rental Property Resilience: Metro Harbour Plaza and Green Code Plaza, as large-scale podium malls, are less affected by retail downturns. Tai Hung Fai (Tsuen Wan) Centre’s strategic location shields it from volatility linked to tourist-dependent shops.
• Ferry Operations: The Group continues to engage with the Government to recover costs and sustain operations, vital for transporting oil products and gases for hospitals.
• Medical Sector Prospects: With Hong Kong’s aging population and increased health awareness post-pandemic, the Group sees opportunities in private medical and health-related services. The focus is on high-end, non-hospital clients, less impacted by Mainland competition.
• Cash Position: Ample cash reserves, no borrowings, and strong liquidity (current ratio 10.2) underpin financial security and flexibility to pursue attractive investments.
• Employee Compensation: Workforce increased to 310, with total employee costs at HK\$144 million. Competitive remuneration, bonuses, and benefits are provided.

Prospects and Forward-Looking Statements

• Economic Outlook: Benefiting from government policies, Hong Kong’s financial sector rebounded sharply—Hang Seng Index up 27.8%, IPO fundraising regained global leadership, and property prices rose 3.3% with rental demand up 4.3%.
• Business Expansion: The Group plans to leverage government initiatives in tourism and healthcare, actively seeking new opportunities, especially with specialist doctor collaborations.
• Revenue Sources: Rental income and bank interest are expected to remain the primary revenue drivers in 2026. The Group aims to maintain its solid financial position and proactively seek investments with reasonable returns.
• Potential Risks: Geopolitical uncertainties (e.g., Iran war, global inflation) remain potential threats to market stability. The Board notes these as unpredictable risk factors.

Corporate Governance & Shareholder Matters

• AGM and Dividend Dates: Final dividend subject to AGM approval on 29 May 2026; payable on 23 June 2026. Register closure periods for AGM and dividend entitlement are scheduled—shareholders must ensure timely transfer of documents to qualify.
• Audit Committee: Financial results reviewed and agreed by Audit Committee and auditor (KPMG), with no disagreements or qualifications.
• Model Code Compliance: All directors complied with Model Code for Securities Transactions throughout 2025.
• No Share Buybacks: Neither the Company nor subsidiaries purchased, sold, or redeemed any listed securities during the year.
• Forward-Looking Statement: The report contains forward-looking statements that may be subject to risks and uncertainties. Actual results may differ materially.

Critical Issues Affecting Shareholder Value

• Profit Jump and EPS Doubling: The dramatic profit increase and EPS growth are highly price-sensitive and could positively impact share value.
• Valuation Gains on Investment Properties: The surge in fair value gains is a key driver for profit and may influence investor sentiment.
• Medical Segment Nearing Profitability: The significant reduction in losses in healthcare and beauty services, and award recognition, signal strong growth potential.
• Acquisition and Enhancement of Tai Hung Fai (Tsuen Wan) Centre: The strategic property acquisition and improvement could bolster rental income and asset value.
• No Borrowings and Strong Cash Position: The Group’s robust financial health provides resilience and flexibility for future investments, potentially supporting share value.
• Dividend Stability: Maintained dividend payout (HK25 cents per share) signals confidence in sustained earnings and shareholder returns.
• Government Policy Alignment: Proactive expansion in healthcare and tourism sectors may unlock new revenue streams and growth opportunities.

Conclusion

The 2025 annual results reflect a strong performance by Hong Kong Ferry (Holdings) Company Limited, with profit and EPS doubling, substantial valuation gains, stable dividend payouts, and a solid financial position. Expansion in medical, healthcare, and property segments, coupled with strategic acquisitions and award recognitions, indicate ongoing growth momentum. The company’s proactive response to market trends and government policy initiatives, as well as its risk management, positions it well for further value creation. Investors should note the price-sensitive nature of profit growth, valuation gains, and property enhancements, as these factors may drive share price movements in the near term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties. Investors are advised to conduct their own research and consult professional advisors before making any investment decisions.

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