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 Analysis

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

Stable Share Price: 16 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

16

-3.1%

HK Real Estate

-0.6%

HK Market


1 Year Return

-17.0%

16

-9.0%

HK Real Estate

-7.6%

HK Market

Return vs Industry: 16 underperformed the Hong Kong Real Estate industry which returned -9% over the past year.

Return vs Market: 16 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

16IndustryMarket
7 Day-4.0%-3.1%-0.6%
30 Day-4.0%-1.5%-1.4%
90 Day-3.4%-0.5%2.0%
1 Year-13.6%-17.0%-4.9%-9.0%-4.2%-7.6%
3 Year8.8%-3.1%33.7%19.3%12.9%1.5%
5 Year10.6%-8.3%55.1%28.9%13.1%-5.6%

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?

7.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 16 (HK$111.1) is trading above our estimate of fair value (HK$92.61)

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 PE Ratio (7.2x) compared to the Real Estate industry average (6.6x).

PE vs Market: 16 is good value based on its PE Ratio (7.2x) compared to the Hong Kong market (10.1x).


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 13 analysts?

-10.1%

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 (-10.1% per year).

Earnings vs Market: 16's earnings are forecast to decline over the next 3 years (-10.1% per year).

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

Revenue vs Market: 16's revenue (8.4% per year) is forecast to grow slower than the Hong Kong market (9.6% per year).

High Growth Revenue: 16's revenue (8.4% 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 (5.8%).


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

Quality Earnings: 16 has a large one-off gain of HK$12.6B impacting its June 30 2019 financial results.

Growing Profit Margin: 16's current net profit margins (52.7%) are lower than last year (58.3%).


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 (-8%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed its short term liabilities (HK$65.9B).

Long Term Liabilities: 16's short term assets (HK$242.4B) exceed its long term liabilities (HK$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 2.6x debt).


Next Steps

Dividend

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

4.46%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.3%markettop25%6.3%industryaverage4.5%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: 16's dividend (4.46%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 16's dividend (4.46%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


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 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 (46.1% payout ratio).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Raymond Kwok (66yo)

12yrs

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 ($USD495.65K) is below average for companies of similar size in the Hong Kong market ($USD1.05M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ping-luen Kwok
Chairman & MD12yrsHK$3.86m2.34% HK$7.6b
Chun Kwong
Executive Director27.3yrsHK$7.97m0.038% HK$124.0m
Chi-ho Tung
Executive Director 6.2yrsHK$22.24mno data
Ting Lui
Deputy MD & Executive Director7.8yrsHK$28.05m0.0055% HK$18.0m
Chik-wing Wong
Deputy MD & Executive Director24.1yrsHK$27.73m0.017% HK$56.0m
Kai-fai Kwok
Executive Director5.2yrsHK$9.63m0.68% HK$2.2b
Yuk-lun Fung
Executive Director6.2yrsHK$20.96mno data
Kai-wang Kwok
Executive Director3.8yrsHK$8.91m0.0059% HK$19.1m
Ching-Kam Li
Chief Accountant0yrsno datano data
Thomas MK Chan
Head of Investor Relations0yrsno datano data

7.6yrs

Average Tenure

61.5yo

Average Age

Experienced Management: 16's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ping-luen Kwok
Chairman & MD12yrsHK$3.86m2.34% HK$7.6b
Chun Kwong
Executive Director27.3yrsHK$7.97m0.038% HK$124.0m
Chi-ho Tung
Executive Director 6.2yrsHK$22.24mno data
Ting Lui
Deputy MD & Executive Director7.8yrsHK$28.05m0.0055% HK$18.0m
Chik-wing Wong
Deputy MD & Executive Director24.1yrsHK$27.73m0.017% HK$56.0m
Kai-fai Kwok
Executive Director5.2yrsHK$9.63m0.68% HK$2.2b
Yuk-lun Fung
Executive Director6.2yrsHK$20.96mno data
Kai-wang Kwok
Executive Director3.8yrsHK$8.91m0.0059% HK$19.1m
Shau-Kee Lee
Non Executive Vice Chairman0yrsHK$310.00k2.14% HK$7.0b
Yue-Chim Wong
Independent Non-Executive Director14.8yrsHK$440.00k0.00021% HK$684.6k

7.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 16's board of directors are considered experienced (7.8 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$326.000b
  • 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 estates, shopping malls, offices, hotels and serviced suites, and industrial buildings. As of June 30, 2019, its land bank comprised 58.0 million square feet of gross floor area, primarily consists of 25.1 million square feet of properties under development and rest properties for rental and investment purpose. The company also operates a portfolio of hotels. In addition, it provides property management services; construction-related services, including landscaping, electrical and fire prevention systems, and construction plant and machinery leasing; and insurance products to individuals and businesses comprising householders comprehensive, fire, employees compensation, travel, personal accident, motor vehicles, contractors all risks, third party liability, and property all risks. Further, the company offers voice, multimedia, and mobile broadband services; and data center services, including infrastructure, facility management, server co-location, and other value-added services. Additionally, it manages car parks and offers transport facilities for private and the public sectors; operates an expressway; provides public bus transportation services; and offers airport freight forwarding and aviation support services. The company also provides container handling and storage, container freight station, and other port-related services; operates department stores and shopping malls; and offers mortgage and other loan financing facilities. The company was formerly known as Sun Hung Kai (Holdings) Limited and changed its name to Sun Hung Kai Properties Limited in March 1973. Sun Hung Kai Properties Limited was incorporated in 1972 and is based in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:56
End of Day Share Price2020/02/24 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.