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Market Cap

HK$8.1b

Last Updated

2021/05/05 10:47 UTC

Data Sources

Company Financials +

Executive Summary

Sun Hung Kai & Co. Limited, an investment holding company, provides financial services in Hong Kong and China. More Details


Snowflake Analysis

Very undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Sun Hung Kai's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 86 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 86's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.7%

86

-2.2%

HK Consumer Finance

-1.6%

HK Market


1 Year Return

28.6%

86

38.7%

HK Consumer Finance

27.1%

HK Market

Return vs Industry: 86 underperformed the Hong Kong Consumer Finance industry which returned 42.7% over the past year.

Return vs Market: 86 matched the Hong Kong Market which returned 28.4% over the past year.


Shareholder returns

86IndustryMarket
7 Day-1.7%-2.2%-1.6%
30 Day1.3%-1.7%-1.8%
90 Day23.5%2.6%-2.6%
1 Year38.4%28.6%42.8%38.7%32.0%27.1%
3 Year4.5%-18.4%-14.0%-20.3%4.7%-6.4%
5 Year21.5%-12.1%-4.8%-20.0%59.5%32.5%

Long-Term Price Volatility Vs. Market

How volatile is Sun Hung Kai's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sun Hung Kai undervalued compared to its fair value and its price relative to the market?

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 86 (HK$4) is trading below our estimate of fair value (HK$7.72)

Significantly Below Fair Value: 86 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 86 is good value based on its PE Ratio (3.1x) compared to the HK Consumer Finance industry average (8x).

PE vs Market: 86 is good value based on its PE Ratio (3.1x) compared to the Hong Kong market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 86 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 86 is good value based on its PB Ratio (0.4x) compared to the HK Consumer Finance industry average (0.6x).


Future Growth

How is Sun Hung Kai forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 86's forecast earnings growth (10.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 86's earnings (10.3% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 86's earnings are forecast to grow, but not significantly.

Revenue vs Market: 86's revenue (20.1% per year) is forecast to grow faster than the Hong Kong market (12.8% per year).

High Growth Revenue: 86's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 86's Return on Equity is forecast to be low in 3 years time (11.4%).


Past Performance

How has Sun Hung Kai performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 86 has a large one-off gain of HK$2.4B impacting its December 31 2020 financial results.

Growing Profit Margin: 86's current net profit margins are higher than last year (85.6%).


Past Earnings Growth Analysis

Earnings Trend: 86's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: 86's earnings growth over the past year (22.3%) exceeds its 5-year average (18% per year).

Earnings vs Industry: 86 earnings growth over the past year (22.3%) exceeded the Consumer Finance industry -19.9%.


Return on Equity

High ROE: 86's Return on Equity (11.3%) is considered low.


Financial Health

How is Sun Hung Kai's financial position?


Financial Position Analysis

Short Term Liabilities: 86's short term assets (HK$27.8B) exceed its short term liabilities (HK$9.2B).

Long Term Liabilities: 86's short term assets (HK$27.8B) exceed its long term liabilities (HK$8.9B).


Debt to Equity History and Analysis

Debt Level: 86's debt to equity ratio (64.7%) is considered high.

Reducing Debt: 86's debt to equity ratio has increased from 46% to 64.7% over the past 5 years.

Debt Coverage: 86's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: Insufficient data to determine if 86's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Sun Hung Kai current dividend yield, its reliability and sustainability?

6.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 86's dividend (6.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).

High Dividend: 86's dividend (6.5%) is in the top 25% of dividend payers in the Hong Kong market (6.03%)


Stability and Growth of Payments

Stable Dividend: 86's dividend payments have been volatile in the past 10 years.

Growing Dividend: 86's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), 86's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 86's dividends in 3 years are forecast to be thoroughly covered by earnings (14.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Seng Huang Lee (46 yo)

14.33yrs

Tenure

HK$100,220,000

Compensation

Mr. Seng Huang Lee has been the Non-Independent Executive Chairman at Mulpha Australia Limited since December 2003. He serves as Strategic Advisor at ClearVue Partners. Mr. Lee has been the Group Executive...


CEO Compensation Analysis

Compensation vs Market: Seng Huang's total compensation ($USD12.90M) is above average for companies of similar size in the Hong Kong market ($USD425.93K).

Compensation vs Earnings: Seng Huang's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 86's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: 86's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sun Hung Kai & Co. Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sun Hung Kai & Co. Limited
  • Ticker: 86
  • Exchange: SEHK
  • Founded: 1969
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$8.088b
  • Shares outstanding: 1.98b
  • Website: https://www.shkco.com

Number of Employees


Location

  • Sun Hung Kai & Co. Limited
  • Lee Garden One
  • 42nd Floor
  • Causeway Bay
  • Hong Kong

Listings


Biography

Sun Hung Kai & Co. Limited, an investment holding company, provides financial services in Hong Kong and China. The company operates through Consumer Finance, Specialty Finance, Mortgage Loans, Investment M...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 10:47
End of Day Share Price2021/05/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.