Sun Hung Kai Properties Full Year 2024 Earnings: Misses Expectations

Sun Hung Kai Properties (HKG:16) Full Year 2024 Results

Key Financial Results

• Revenue: HK$71.5b (flat on FY 2023).
• Net income: HK$19.0b (down 20% from FY 2023).
• Profit margin: 27% (down from 34% in FY 2023).
• EPS: HK$6.57 (down from HK$8.25 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Sun Hung Kai Properties Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 17%.

The primary driver behind last 12 months revenue was the Property Development - Hong Kong segment contributing a total revenue of HK$24.7b (35% of total revenue). Notably, cost of sales worth HK$39.3b amounted to 55% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling HK$7.60b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 16's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Real Estate industry in Hong Kong.

Performance of the Hong Kong Real Estate industry.

The company's shares are up 1.1% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for Sun Hung Kai Properties that you need to be mindful of.

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