Sun Hung Kai
Market Cap
HK$6.7b
Last Updated
2021/03/05 10:31 UTC
Data Sources
Company Financials +
Executive Summary
Sun Hung Kai & Co. Limited, an investment holding company, provides financial services in Hong Kong and Mainland China. More Details
Rewards
Risk Analysis
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 +/- 2% a week.
Volatility Over Time: 86's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
86
0.5%
HK Consumer Finance
-3.5%
HK Market
1 Year Return
-5.3%
86
21.8%
HK Consumer Finance
19.4%
HK Market
Return vs Industry: 86 underperformed the Hong Kong Consumer Finance industry which returned 21.8% over the past year.
Return vs Market: 86 underperformed the Hong Kong Market which returned 19.4% over the past year.
Shareholder returns
| 86 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 0.5% | -3.5% |
| 30 Day | 5.0% | 7.3% | -0.7% |
| 90 Day | -2.6% | 15.1% | 10.8% |
| 1 Year | 2.9%-5.3% | 25.5%21.8% | 24.0%19.4% |
| 3 Year | -17.8%-33.5% | -25.2%-29.9% | 5.5%-5.4% |
| 5 Year | 2.2%-25.8% | -16.6%-29.4% | 64.0%36.2% |
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
No news available
Valuation
Is Sun Hung Kai undervalued compared to its fair value and its price relative to the market?
41.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 86 (HK$3.39) is trading below our estimate of fair value (HK$5.84)
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 (3.9x) compared to the HK Consumer Finance industry average (7.1x).
PE vs Market: 86 is good value based on its PE Ratio (3.9x) compared to the Hong Kong market (12x).
Price to Earnings Growth Ratio
PEG Ratio: 86 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 86 is good value based on its PB Ratio (0.3x) compared to the HK Consumer Finance industry average (0.6x).
Next Steps
Future Growth
How is Sun Hung Kai forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 86's forecast earnings growth (8.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 86's earnings (8.6% per year) are forecast to grow slower than the Hong Kong market (21.2% per year).
High Growth Earnings: 86's earnings are forecast to grow, but not significantly.
Revenue vs Market: 86's revenue (13.3% per year) is forecast to grow slower than the Hong Kong market (13.5% per year).
High Growth Revenue: 86's revenue (13.3% per year) is forecast to grow slower 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 (9.1%).
Next Steps
Past Performance
How has Sun Hung Kai performed over the past 5 years?
17.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 86 has a large one-off gain of HK$1.2B impacting its June 30 2020 financial results.
Growing Profit Margin: 86's current net profit margins (74.9%) are higher than last year (45.4%).
Past Earnings Growth Analysis
Earnings Trend: 86's earnings have grown by 17.4% per year over the past 5 years.
Accelerating Growth: 86's earnings growth over the past year (51%) exceeds its 5-year average (17.4% per year).
Earnings vs Industry: 86 earnings growth over the past year (51%) exceeded the Consumer Finance industry -23.2%.
Return on Equity
High ROE: 86's Return on Equity (9%) is considered low.
Next Steps
Financial Health
How is Sun Hung Kai's financial position?
Financial Position Analysis
Short Term Liabilities: 86's short term assets (HK$27.3B) exceed its short term liabilities (HK$10.5B).
Long Term Liabilities: 86's short term assets (HK$27.3B) exceed its long term liabilities (HK$8.8B).
Debt to Equity History and Analysis
Debt Level: 86's debt to equity ratio (75.7%) is considered high.
Reducing Debt: 86's debt to equity ratio has increased from 44.7% to 75.7% over the past 5 years.
Debt Coverage: 86's debt is not well covered by operating cash flow (16.2%).
Interest Coverage: Insufficient data to determine if 86's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Sun Hung Kai current dividend yield, its reliability and sustainability?
7.67%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 86's dividend (7.67%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.02%).
High Dividend: 86's dividend (7.67%) is in the top 25% of dividend payers in the Hong Kong market (6.26%)
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 fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.6%), 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 well covered by earnings (21.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Seng Huang Lee (46 yo)
14.17yrs
Tenure
HK$58,890,000
Compensation
Mr. Seng Huang Lee has been the Non-Independent Executive Chairman at Mulpha Australia Limited since December 2003. He serves as Strategic Advisor at ClearVue Partners. Mr. Lee has been the Group Executive...
CEO Compensation Analysis
Compensation vs Market: Seng Huang's total compensation ($USD7.59M) is above average for companies of similar size in the Hong Kong market ($USD402.46K).
Compensation vs Earnings: Seng Huang's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Executive Chairman & CEO | 14.17yrs | HK$58.89m | no data | |
| Group Deputy CEO & Executive Director | 5.75yrs | HK$8.69m | 0.027% HK$ 1.8m | |
| Group Chief Financial Officer | 2.5yrs | no data | no data | |
| Head of Operations | no data | no data | no data | |
| Chief Investment Officer & Head of Principal Investments | 4.5yrs | no data | no data | |
| Chief Accountant | no data | no data | no data | |
| CTO & Head of Information Technology Department | no data | no data | no data | |
| Head of Administration Department | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Head of Internal Audit & Compliance | 17.25yrs | no data | no data | |
| Head of Legal | 2.17yrs | no data | no data | |
| Group Treasurer & Head of Corporate Development | 3.83yrs | no data | no data |
4.5yrs
Average Tenure
53yo
Average Age
Experienced Management: 86's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Executive Chairman & CEO | 14.17yrs | HK$58.89m | no data | |
| Group Deputy CEO & Executive Director | 5.75yrs | HK$8.69m | 0.027% HK$ 1.8m | |
| MD of Futures | no data | no data | no data | |
| Non-Executive Director | 5.17yrs | HK$20.00k | no data | |
| Independent Non-Executive Director | 21.33yrs | HK$250.00k | no data | |
| Non-Executive Director | 10.17yrs | HK$250.00k | 0.063% HK$ 4.2m | |
| Independent Non-Executive Director | 15.17yrs | HK$310.00k | no data | |
| Independent Non Executive Director | 3yrs | HK$250.00k | no data | |
| Independent Non-Executive Director | 6.33yrs | HK$250.00k | no data |
8.3yrs
Average Tenure
60yo
Average Age
Experienced Board: 86's board of directors are considered experienced (8.3 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: SHSC
- Founded: 1969
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: HK$6.720b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 86 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| SHK | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 86 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| 86 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
Biography
Sun Hung Kai & Co. Limited, an investment holding company, provides financial services in Hong Kong and Mainland China. It operates through Consumer Finance, Mortgage Loans, Specialty Finance, Investment M...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/05 10:31 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.