WHARF HOLDINGS (00004) declined over 3%, falling 3.6% to HK$21.42 with trading volume of HK$9.1852 million as of press time.

On the news front, WHARF HOLDINGS recently released its interim results for the six months ended June 30, 2025, showing revenue of HK$5.669 billion, down 19.38% year-on-year. Shareholders' attributable profit reached HK$535 million, compared to a loss of HK$2.637 billion in the same period last year, representing a turnaround from loss to profit. Basic earnings per share stood at HK$0.18, with an interim dividend of HK$0.2 per share proposed.

According to the announcement, investment property income decreased 4% to HK$2.281 billion (2024: HK$2.364 billion), while operating profit fell 6% to HK$1.484 billion (2024: HK$1.573 billion), due to soft rental conditions for shopping malls and office buildings.

Citi released a research report stating that WHARF HOLDINGS has a debt ratio of 4.4%. If the HK$39.8 billion stock portfolio within its HK$48 billion long-term investments is treated as quasi-cash, the company effectively holds HK$33 billion in net cash, equivalent to 50% of its market capitalization. Given macro uncertainties and market conditions, the company is not rushing to reinvest and may focus on monetizing its existing land bank.

The bank believes investors may be pricing in expectations for increased shareholder returns, but expects the company to maintain stable dividend per share without increases, and considers the likelihood of share buybacks to be low. Citi views WHARF HOLDINGS' valuation as the highest in the industry, noting that while its strong balance sheet allows for various actions within the group, these may not necessarily benefit the share price.