HK Stock Market Move | WHARF HOLDINGS (00004) rebounded over 3%, with the interim dividend doubling to HKD 0.4. UBS stated that they remain optimistic.

WHARF HOLDINGS (00004) rebounded over 3%, after the stock dropped more than 5% during yesterday afternoon. As of the time of writing, it was up 3.12%, trading at HKD 21.16, with a transaction volume of HKD 27.6373 million. In terms of news, WHARF HOLDINGS released its interim results for the first half of 2026 yesterday, reporting revenue of HKD 5.344 billion, a decrease of 6% year-on-year; the company's profit attributable to shareholders was HKD 48 million, down 91% year-on-year. Excluding the impact of investment property revaluation impairment, the group's underlying net profit decreased by 17% to HKD 1.697 billion. The board has resolved to declare a first interim dividend of HKD 0.20 per share, as well as a special interim dividend of HKD 0.20 per share to celebrate the company's 140th anniversary. UBS pointed out that excluding the one-time impairment loss of HKD 547 million related to properties in China, the underlying profit should be HKD 2.2 billion, which is in line with the bank's expectations. Given that 36% of Wharf's total asset value is related to ultra-luxury residential properties in Hong Kong, the bank believes these assets are likely to benefit from wealth creation driven by artificial intelligence (AI), hence UBS remains optimistic about Wharf. The current price-to-earnings ratio of the stock is 0.43 times, with liquid assets (net cash plus equity investment portfolio) accounting for approximately 74% of its market value.