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Sun Hung Kai Properties

Market Cap

HK$332.1b

Last Updated

2021/05/15 10:46 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent 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

Stable Share Price: 16 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 16's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

16

-3.9%

HK Real Estate

-1.9%

HK Market


1 Year Return

18.6%

16

4.7%

HK Real Estate

24.4%

HK Market

Return vs Industry: 16 exceeded the Hong Kong Real Estate industry which returned 4.7% over the past year.

Return vs Market: 16 underperformed the Hong Kong Market which returned 24.4% over the past year.


Shareholder returns

16IndustryMarket
7 Day-3.4%-3.9%-1.9%
30 Day-5.4%-4.7%-2.4%
90 Day5.3%1.4%-8.0%
1 Year24.3%18.6%9.8%4.7%29.1%24.4%
3 Year2.7%-10.0%-10.7%-22.0%0.5%-10.0%
5 Year59.7%30.5%61.4%28.6%58.6%31.8%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 16 (HK$114.6) is trading below our estimate of fair value (HK$337.37)

Significantly Below Fair Value: 16 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 16 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong Real Estate industry average (7.1x).

PE vs Market: 16 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 16 is poor value based on its PEG Ratio (2.4x)


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).


Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 16's forecast earnings growth (6.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 16's earnings (6.4% per year) are forecast to grow slower than the Hong Kong market (16.9% per year).

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

Revenue vs Market: 16's revenue (5.7% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 16's revenue (5.7% 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 (5.7%).


Past Performance

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

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 16 has a large one-off loss of HK$9.7B impacting its December 31 2020 financial results.

Growing Profit Margin: 16's current net profit margins (24.1%) are lower than last year (45.8%).


Past Earnings Growth Analysis

Earnings Trend: 16's earnings have declined by 4% 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 (-45.5%) over the past year, making it difficult to compare to the Real Estate industry average (5.9%).


Return on Equity

High ROE: 16's Return on Equity (3.8%) is considered low.


Financial Health

How is Sun Hung Kai Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 16's short term assets (HK$234.4B) exceed its short term liabilities (HK$76.1B).

Long Term Liabilities: 16's short term assets (HK$234.4B) exceed its long term liabilities (HK$114.5B).


Debt to Equity History and Analysis

Debt Level: 16's debt to equity ratio (18.1%) is considered satisfactory.

Reducing Debt: 16's debt to equity ratio has increased from 17.6% to 18.1% over the past 5 years.

Debt Coverage: 16's debt is well covered by operating cash flow (36.8%).

Interest Coverage: 16's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet


Dividend

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

4.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 16's dividend (4.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.94%).

High Dividend: 16's dividend (4.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.2%), 16's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 16's dividends in 3 years are forecast to be well covered by earnings (44.9% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Raymond Kwok (67 yo)

13.25yrs

Tenure

HK$3,860,000

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 ($USD497.02K) is below average for companies of similar size in the Hong Kong market ($USD853.42K).

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 (8.8 years average tenure).


Board Members

Experienced Board: 16's board of directors are seasoned and experienced ( 12.7 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 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$332.086b
  • 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


Biography

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally. It develops and sells properties, including residential estates, offi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 10:46
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.