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
Rewards
Risk Analysis
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
| 16 | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -3.9% | -1.9% |
| 30 Day | -5.4% | -4.7% | -2.4% |
| 90 Day | 5.3% | 1.4% | -8.0% |
| 1 Year | 24.3%18.6% | 9.8%4.7% | 29.1%24.4% |
| 3 Year | 2.7%-10.0% | -10.7%-22.0% | 0.5%-10.0% |
| 5 Year | 59.7%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
2 weeks ago | Simply Wall St
Did You Participate In Any Of Sun Hung Kai Properties' (HKG:16) Respectable 48% Return?1 month ago | Simply Wall St
We Think Sun Hung Kai Properties (HKG:16) Can Stay On Top Of Its Debt1 month ago | Simply Wall St
Who Has Been Buying Sun Hung Kai Properties Limited (HKG:16) Shares?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/15 10:46 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.