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16

Sun Hung Kai Properties SEHK:16 Stock Report

Last Price

HK$94.80

Market Cap

HK$274.7b

7D

-0.4%

1Y

-19.5%

Updated

24 May, 2022

Data

Company Financials +
16 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends4/6

16 Stock Overview

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

Sun Hung Kai Properties Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sun Hung Kai Properties
Historical stock prices
Current Share PriceHK$94.80
52 Week HighHK$124.30
52 Week LowHK$87.15
Beta0.69
1 Month Change0.58%
3 Month Change-0.53%
1 Year Change-19.46%
3 Year Change-29.25%
5 Year Change-17.71%
Change since IPO349.48%

Recent News & Updates

May 01
An Intrinsic Calculation For Sun Hung Kai Properties Limited (HKG:16) Suggests It's 23% Undervalued

An Intrinsic Calculation For Sun Hung Kai Properties Limited (HKG:16) Suggests It's 23% Undervalued

In this article we are going to estimate the intrinsic value of Sun Hung Kai Properties Limited ( HKG:16 ) by taking...

Mar 25
Is Sun Hung Kai Properties (HKG:16) A Risky Investment?

Is Sun Hung Kai Properties (HKG:16) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

16HK Real EstateHK Market
7D-0.4%-1.2%-1.0%
1Y-19.5%-35.6%-26.1%

Return vs Industry: 16 exceeded the Hong Kong Real Estate industry which returned -34.1% over the past year.

Return vs Market: 16 exceeded the Hong Kong Market which returned -24% over the past year.

Price Volatility

Is 16's price volatile compared to industry and market?
16 volatility
16 Average Weekly Movement3.3%
Real Estate Industry Average Movement7.4%
Market Average Movement8.0%
10% most volatile stocks in HK Market15.1%
10% least volatile stocks in HK Market3.9%

Stable Share Price: 16 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 16's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197238,500Raymond Kwokhttps://www.shkp.com

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, Singapore, and internationally. It develops and sells properties, including residential estates, offices, shopping malls, industrial buildings, and hotels and serviced suites. As of June 30, 2021, the company’s land bank comprised 57.9 million square feet of gross floor area in Hong Kong; and 75.3 million square feet of gross floor area in Mainland China.

Sun Hung Kai Properties Fundamentals Summary

How do Sun Hung Kai Properties's earnings and revenue compare to its market cap?
16 fundamental statistics
Market CapHK$274.71b
Earnings (TTM)HK$28.29b
Revenue (TTM)HK$79.35b

9.7x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
16 income statement (TTM)
RevenueHK$79.35b
Cost of RevenueHK$39.18b
Gross ProfitHK$40.17b
Other ExpensesHK$11.87b
EarningsHK$28.29b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.76
Gross Margin50.62%
Net Profit Margin35.66%
Debt/Equity Ratio20.3%

How did 16 perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

51%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


9.71x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 16 (HK$94.8) is trading above our estimate of fair value (HK$88.64)

Significantly Below Fair Value: 16 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 16 is poor value based on its Price-To-Earnings Ratio (9.7x) compared to the Hong Kong Real Estate industry average (6.6x).

PE vs Market: 16 is poor value based on its Price-To-Earnings Ratio (9.7x) compared to the Hong Kong market (8.8x).


Price to Earnings Growth Ratio

PEG Ratio: 16 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 16 is overvalued based on its Price-To-Book Ratio (0.5x) compared to the HK Real Estate industry average (0.3x).


Future Growth

How is Sun Hung Kai Properties forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 16's forecast earnings growth (4.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 16's earnings (4.8% per year) are forecast to grow slower than the Hong Kong market (16.4% per year).

High Growth Earnings: 16's earnings are forecast to grow, but not significantly.

Revenue vs Market: 16's revenue (8.9% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 16's revenue (8.9% 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 (5.3%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 16 has high quality earnings.

Growing Profit Margin: 16's current net profit margins (35.7%) are higher than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: 16's earnings have declined by 13.7% per year over the past 5 years.

Accelerating Growth: 16's earnings growth over the past year (30.5%) exceeds its 5-year average (-13.7% per year).

Earnings vs Industry: 16 earnings growth over the past year (30.5%) exceeded the Real Estate industry 14.7%.


Return on Equity

High ROE: 16's Return on Equity (4.8%) is considered low.


Financial Health

How is Sun Hung Kai Properties's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 16's short term assets (HK$244.9B) exceed its short term liabilities (HK$73.4B).

Long Term Liabilities: 16's short term assets (HK$244.9B) exceed its long term liabilities (HK$129.3B).


Debt to Equity History and Analysis

Debt Level: 16's net debt to equity ratio (17.2%) is considered satisfactory.

Reducing Debt: 16's debt to equity ratio has increased from 15.8% to 20.3% over the past 5 years.

Debt Coverage: 16's debt is not well covered by operating cash flow (3%).

Interest Coverage: 16's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 16's dividend (5.22%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.82%).

High Dividend: 16's dividend (5.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.77%).


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.7%), 16's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (2829.2%), 16's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

11.9yrs

Average management tenure


CEO

Raymond Kwok (68 yo)

14.25yrs

Tenure

HK$3,680,000

Compensation

Mr. 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. Mr. Kwok s...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD468.80K) is below average for companies of similar size in the Hong Kong market ($USD1.01M).

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


Leadership Team

Experienced Management: 16's management team is seasoned and experienced (11.9 years average tenure).


Board Members

Experienced Board: 16's board of directors are seasoned and experienced ( 14.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 16 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 Properties Limited's 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
  • Implied Market Cap: HK$274.710b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.