SEHK:16

Stock Analysis Report

Sun Hung Kai Properties

Executive Summary

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and Singapore.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

16

1.8%

HK Real Estate

0.3%

HK Market


1 Year Return

10.8%

16

8.8%

HK Real Estate

-1.5%

HK Market

Return vs Industry: 16 matched the Hong Kong Real Estate industry which returned 8.8% over the past year.

Return vs Market: 16 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

16IndustryMarket
7 Day2.6%1.8%0.3%
30 Day0.7%3.3%0.5%
90 Day-12.4%-7.0%-4.4%
1 Year15.6%10.8%13.0%8.8%2.1%-1.5%
3 Year12.2%0.3%39.1%24.6%14.7%3.2%
5 Year20.9%1.2%63.4%37.1%21.5%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 16 (HK$115.3) is trading below our estimate of fair value (HK$124.02)

Significantly Below Fair Value: 16 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 16 is poor value based on its PE Ratio (7.4x) compared to the Real Estate industry average (6.2x).

PE vs Market: 16 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 16's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 16 is overvalued based on its PB Ratio (0.6x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Sun Hung Kai Properties forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 16's earnings are forecast to decline over the next 3 years (-7% per year).

Earnings vs Market: 16's earnings are forecast to decline over the next 3 years (-7% per year).

High Growth Earnings: 16's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 16's revenue (10.4% per year) is forecast to grow faster than the Hong Kong market (10.4% per year).

High Growth Revenue: 16's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 16's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

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

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 16's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: 16's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 16 had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 16's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: 16 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 16 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sun Hung Kai Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 16's short term assets (HK$242.4B) exceeds its short term liabilities (HK$65.9B)

Long Term Liabilities: 16's short term assets (242.4B) exceeds its long term liabilities (109.4B)


Debt to Equity History and Analysis

Debt Level: 16's debt to equity ratio (16.5%) is considered satisfactory

Reducing Debt: 16's debt to equity ratio has reduced from 20% to 16.5% over the past 5 years.

Debt Coverage: 16's debt is well covered by operating cash flow (20.8%).

Interest Coverage: 16's interest payments on its debt are well covered by EBIT (20.7x coverage).


Balance Sheet

Inventory Level: 16 has a high level of physical assets or inventory.

Debt Coverage by Assets: 16's debt is covered by short term assets (assets are 2.551570x debt).


Next Steps

Dividend

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

4.29%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sun Hung Kai Properties before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 16's dividend (4.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 16's dividend (4.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 16's dividends per share have been stable in the past 10 years.

Growing Dividend: 16's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.9%), 16's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 16's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).


Next Steps

Management

What is the CEO of Sun Hung Kai Properties's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Raymond Kwok (66yo)

11.7yrs

Tenure

HK$3,860,000

Compensation

Dr. Ping-Luen Kwok, also known as Raymond, Hon LLD, Hon DBA, MBA, MA (Cantab), JP, serves as the Managing Director and General Manager of Finance & Administration at Sun Hung Kai Properties Ltd. Dr. Kwok s ...


CEO Compensation Analysis

Compensation vs. Market: Raymond's total compensation ($USD492.21K) is about average for companies of similar size in the Hong Kong market ($USD806.88K).

Compensation vs Earnings: Raymond's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.3yrs

Average Tenure

61.5yo

Average Age

Experienced Management: 16's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 16's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellHK$92,882,36320 Mar 19
BlackRock, Inc.
EntityCompany
Shares718,500
Max PriceHK$129.27
BuyHK$21,336,49731 Oct 18
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares209,000
Max PriceHK$102.09
BuyHK$13,235,47826 Oct 18
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares132,500
Max PriceHK$99.89
BuyHK$47,158,57925 Oct 18
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares465,000
Max PriceHK$101.42
BuyHK$1,534,10024 Oct 18
Ping-luen Kwok
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares15,000
Max PriceHK$102.27
BuyHK$87,031,13124 Oct 18
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares851,500
Max PriceHK$102.21

Ownership Breakdown


Management Team

  • Chun Kwong (90yo)

    Executive Director

    • Tenure: 27yrs
    • Compensation: HK$7.97m
  • Raymond Kwok (66yo)

    Chairman & MD

    • Tenure: 11.7yrs
    • Compensation: HK$3.86m
  • Eric Tung (60yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$22.24m
  • Victor Lui (64yo)

    Deputy MD & Executive Director

    • Tenure: 7.5yrs
    • Compensation: HK$28.05m
  • Frederick Li

    Chief Accountant

    • Tenure: 0yrs
  • Mike Wong (63yo)

    Deputy MD & Executive Director

    • Tenure: 23.8yrs
    • Compensation: HK$27.73m
  • Adam Kwok (36yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$9.63m
  • Allen Fung (51yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$20.96m
  • Christopher Kwok (32yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$8.91m
  • Thomas MK Chan

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Shau-Kee Lee (91yo)

    Non Executive Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$310.00k
  • Chun Kwong (90yo)

    Executive Director

    • Tenure: 27yrs
    • Compensation: HK$7.97m
  • Raymond Kwok (66yo)

    Chairman & MD

    • Tenure: 11.7yrs
    • Compensation: HK$3.86m
  • Richard Wong (66yo)

    Independent Non-Executive Director

    • Tenure: 14.4yrs
    • Compensation: HK$440.00k
  • Eric Tung (60yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$22.24m
  • Victor Lui (64yo)

    Deputy MD & Executive Director

    • Tenure: 7.5yrs
    • Compensation: HK$28.05m
  • Mike Wong (63yo)

    Deputy MD & Executive Director

    • Tenure: 23.8yrs
    • Compensation: HK$27.73m
  • Adam Kwok (36yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$9.63m
  • Allen Fung (51yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$20.96m
  • Christopher Kwok (32yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$8.91m

Company Information

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


Key Information

  • Name: Sun Hung Kai Properties Limited
  • Ticker: 16
  • Exchange: SEHK
  • Founded: 1972
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$333.535b
  • Shares outstanding: 2.90b
  • Website: https://www.shkp.com

Number of Employees


Location

  • Sun Hung Kai Properties Limited
  • Sun Hung Kai Centre
  • 45th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUHJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
16SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
SHGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
16SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
16SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
SUHJ.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1992

Biography

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and Singapore. The company primarily develops and sells properties, including residential  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:40
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.