Sun Hung Kai Properties (0016) AI Stock Analysis

• Market Cap: $245.44B
• Dividend Yield: 5.01%
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.67
• Revenue Growth: 20.91%
• EPS Growth: -29.29%
• Country: HK
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 66
• Industry: Real Estate - Development
• EPS (TTM): 3.61
• Shares Outstanding: 2,897,780,300
• 10 Day Avg. Volume: 3,431,945
• 30 Day Avg. Volume: 3,464,636
• PEG Ratio: -0.51
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $76.50
• Price Target Upside: -10.05% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: HK$93.00 ▲(9.35%Upside)

The overall stock score for Sun Hung Kai Properties is driven primarily by its strong financial performance and positive technical indicators. The company's robust balance sheet and attractive dividend yield also contribute positively, although declining revenue and profit margins pose some risks.

Positive Factors

Property Market Interest

The recent launch of YOHO West Parkside in Tin Shui Wai received overwhelming response with more than 96% of the total of 525 units sold.

Sales Performance

All 318 units at Sierra Sea Ph 1 A (2) on public offer were sold out on the first day of sale.

Valuation

The stock is trading at a 67% discount to our appraised current NAV, which is attractive on a historical basis.

Negative Factors

Market Demand

Any further deterioration in property demand in Hong Kong and China could drag its earnings and share price performance.

Property Demand

Any further deterioration in property demand in Hong Kong and China could drag its earnings and share price performance.

Sun Hung Kai Properties Business Overview & Revenue Model

Company Description

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. It also 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 householder's comprehensive, fire, employees' compensation, travel, personal accident, motor vehicles, contractors' all risks, third party liability, and property all risks. In addition, 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. Further, it manages car parks, tunnels, bridges, and toll roads; 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. Additionally, the company provides container handling and storage, container freight station, and other port-related services; operates department stores and supermarkets; and offers mortgage and other loan financing facilities, as well as asset and project management, architectural and engineering, cleaning, and secretarial services. It also engages in club and road management activities. 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.

How the Company Makes Money

Sun Hung Kai Properties generates revenue through several key streams. The primary source is property development, where the company constructs and sells residential, commercial, and industrial properties. Profits are realized from the sale of these properties in Hong Kong and mainland China. Additionally, the company earns significant income from property investment by leasing out its extensive portfolio of office buildings, shopping malls, and industrial properties, providing a stable and recurring revenue source. Sun Hung Kai Properties also operates a number of hotels, contributing to its earnings through hospitality services. Furthermore, the company benefits from its investments in telecommunications and infrastructure, adding to its diversified income streams. Strategic partnerships and joint ventures in various sectors further bolster its financial performance.

Sun Hung Kai Properties Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
78.50B	73.28B	71.76B	78.50B	85.24B	83.49B
	Gross Profit
40.53B	33.99B	34.95B	40.53B	44.73B	42.96B
	EBIT
33.45B	26.70B	27.63B	33.45B	36.95B	35.45B
	EBITDA
38.51B	31.57B	32.47B	38.51B	42.16B	40.04B
	Net Income Common Stockholders
25.56B	19.05B	23.91B	25.56B	26.75B	23.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.65B	16.97B	15.89B	21.02B	23.16B	32.53B
	Total Assets
816.13B	818.09B	805.99B	807.57B	796.42B	797.83B
	Total Debt
137.18B	129.65B	128.05B	126.77B	118.61B	118.06B
	Net Debt
129.68B	113.43B	113.73B	108.44B	96.96B	86.78B
	Total Liabilities
209.26B	207.02B	199.19B	200.82B	196.79B	211.23B
	Stockholders Equity
602.33B	606.72B	602.05B	601.95B	593.82B	571.81B
Cash Flow		Free Cash Flow
11.16B	19.89B	21.65B	11.16B	12.60B	44.69B
	Operating Cash Flow
15.19B	24.52B	26.14B	15.19B	15.81B	47.67B
	Investing Cash Flow
-9.52B	-9.61B	-16.06B	-9.52B	-9.59B	-39.69B
	Financing Cash Flow
-8.84B	-13.11B	-13.66B	-8.84B	-16.79B	2.12B

Sun Hung Kai Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0016, the sentiment is Positive. The current price of 85.05 is above the 20-day moving average (MA) of 82.56, above the 50-day MA of 76.57, and above the 200-day MA of 75.22, indicating a bullish trend. The MACD of 2.29 indicates Positive momentum. The RSI at 69.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0016.

Sun Hung Kai Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0016	73 Outperform	$245.44B	14.09	2.88%	5.01%	20.91%	-29.29%
Sector *	61 Neutral	$2.82B	10.88	0.42%	8438.92%	5.74%	-20.95%
CHVKF		$10.33B	5.74		13.28%	―	―
CAOVF		$18.44B	8.31	4.15%	5.81%	―	―
CHKGF		$14.70B	7.83	3.52%	5.72%	―	―
CRBJF		$23.81B	6.17	9.66%	6.59%	―	―
SNLAF		$9.39B	18.79	2.17%	7.43%	―	―

Sun Hung Kai Properties Corporate Events

Sun Hung Kai Properties Sees Rise in Underlying Profit Amidst Rental Income Decline

Sun Hung Kai Properties reported an increase in underlying profit attributable to shareholders for the six months ending December 31, 2024, reaching HK$10,463 million, up from HK$8,906 million in the previous year. Despite a decrease in reported profit due to fair value changes in investment properties, the company maintained its interim dividend at HK$0.95 per share. The company achieved HK$2,506 million in profit from property sales and recorded contracted sales of approximately HK$25,500 million. However, rental income saw a slight decline, with gross rental income decreasing by 1% and net rental income by 3% year-on-year. The company also expanded its land bank by acquiring two new residential sites, totaling 465,000 square feet, to support its medium-term development needs.

Sun Hung Kai Properties Declares Interim Dividend for 2024

Sun Hung Kai Properties has announced an interim cash dividend of HKD 0.95 per share for the six months ending December 31, 2024. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may have implications for its market positioning and stakeholder relations, as it demonstrates financial stability and confidence in future operations.