Sun Hung Kai Properties (0016) AI Stock Analysis

• Market Cap: $271.67B
• Dividend Yield: 3.9%
• Average Volume (3M): 3.87M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.67
• Revenue Growth: 20.91%
• EPS Growth: -29.29%
• Country: HK
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 59
• Industry: Real Estate - Development
• EPS (TTM): 3.61
• Shares Outstanding: 2,897,780,300
• 10 Day Avg. Volume: 3,208,851
• 30 Day Avg. Volume: 3,866,603
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 9.34
• Enterprise Value/Ebitda: 10.21
• 1Y Price Target: $103.06
• Price Target Upside: 7.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: HK$104.00 ▲(8.05% Upside)

Sun Hung Kai Properties' overall stock score is bolstered by its strong technical indicators and solid financial performance. The positive market momentum suggests potential price appreciation, although caution is advised due to overbought signals. The valuation is reasonable, supported by a solid dividend yield. Continued monitoring of operational efficiency and market conditions is recommended to sustain financial health and growth.

Positive Factors

Future Development

With a strong net order book, SHKP should see high development income visibility in the years ahead.

Residential Sales

Strong response to residential launches with projects like YOHO West Parkside and Sierra Sea Ph1A almost fully sold, generating significant proceeds.

Stock Valuation

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

Negative Factors

Market Conditions

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

Property Demand

Any 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 (0016) is a leading real estate company based in Hong Kong, renowned for its extensive portfolio of residential, commercial, and industrial properties. The company is engaged in property development, property investment, and hotel operations. With a commitment to quality and innovation, Sun Hung Kai Properties develops premium residences, cutting-edge office spaces, and vibrant retail destinations, establishing itself as a significant player in the real estate sector.

How the Company Makes Money

Sun Hung Kai Properties makes money primarily through its property development and property investment segments. The company generates revenue by selling residential properties, which include luxury apartments and private housing estates. Additionally, it earns substantial income from leasing its extensive portfolio of investment properties, such as shopping malls and office buildings. The company also operates hotels, contributing to its revenue through hospitality services. Strategic partnerships and joint ventures in property development projects further enhance its revenue streams. The diverse nature of its operations allows Sun Hung Kai Properties to capitalize on various market opportunities and maintain a stable financial performance.

Sun Hung Kai Properties Financial Statement Overview

Summary

Sun Hung Kai Properties demonstrates solid financial health with strong profitability and a robust balance sheet. Despite some declining revenue and profit margins over the years, the company maintains low financial leverage and strong cash flow generation. Continued focus on operational efficiency and revenue growth will be crucial to maintaining financial strength in the competitive real estate sector.

Income Statement

The company shows stable revenue with a slight growth of 2.1% from the previous year, though revenue has declined over a longer period. The gross profit margin stands at 46.4%, and the net profit margin is 26%, both indicating strong profitability. However, both EBIT and EBITDA margins have seen slight decreases compared to historical levels, which may suggest pressure on operational efficiency.

Balance Sheet

The balance sheet reflects solid equity with an equity ratio of 74.2%, indicating a strong capital structure. The debt-to-equity ratio is 0.21, suggesting low financial leverage and reduced risk. Return on equity is healthy at 3.1%, albeit lower than previous years, implying potential challenges in maximizing shareholder returns.

Cash Flow

Operating cash flow remains robust, covering net income comfortably with a 1.29 ratio. Free cash flow has decreased by 8.1% from the previous year, but the company's ability to generate cash is still strong. The free cash flow to net income ratio stands at 1.04, highlighting good cash conversion.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	71.51B	71.76B	78.50B	85.24B	83.49B
Gross Profit	32.21B	34.95B	40.53B	44.73B	42.96B
EBITDA	31.57B	32.47B	37.52B	42.16B	40.04B
Net Income	19.05B	23.91B	25.56B	26.75B	23.69B
Balance Sheet
Total Assets	818.09B	805.99B	807.57B	796.42B	797.83B
Cash, Cash Equivalents and Short-Term Investments	16.97B	15.89B	21.02B	23.16B	32.53B
Total Debt	129.65B	128.05B	126.77B	118.61B	118.06B
Total Liabilities	207.02B	199.19B	200.82B	196.79B	211.23B
Stockholders Equity	606.72B	602.05B	601.95B	593.82B	571.81B
Cash Flow
Free Cash Flow	19.89B	21.65B	11.16B	12.60B	44.69B
Operating Cash Flow	24.52B	26.14B	15.19B	15.81B	47.67B
Investing Cash Flow	-9.61B	-16.06B	-9.52B	-9.59B	-39.69B
Financing Cash Flow	-13.11B	-13.66B	-8.84B	-16.79B	2.12B

Sun Hung Kai Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 96.25 is above the 20-day moving average (MA) of 92.37, above the 50-day MA of 89.56, and above the 200-day MA of 78.46, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 64.20 is Neutral, neither overbought nor oversold. The STOCH value of 53.61 is Neutral, 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
1109	76 Outperform	$204.52B	7.37	9.66%	4.86%	9.97%	-19.80%
0016	74 Outperform	$271.67B	15.59	2.88%	3.90%	20.91%	-29.29%
1113	71 Outperform	HK$126.76B	9.32	3.52%	5.21%	-3.04%	-20.01%
0083	69 Neutral	HK$85.19B	22.41	2.17%	6.08%	-30.38%	-43.73%
0688	69 Neutral	$145.90B	8.61	4.15%	2.18%	-10.21%	-40.22%
Sector *	63 Neutral	$6.81B	13.54	-1.43%	7.28%	4.64%	-34.02%
2202	47 Neutral	$79.42B	―		13.43%	-32.30%	-620.87%

Sun Hung Kai Properties Corporate Events

Sun Hung Kai Properties Schedules Board Meeting for Annual Results and Dividend Decision

Sun Hung Kai Properties Limited has announced a board meeting scheduled for September 4, 2025, to approve the annual financial results for the year ending June 30, 2025, and to consider the recommendation of a final dividend. This announcement is crucial for stakeholders as it will provide insights into the company’s financial performance and potential returns, impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0016) stock is a Buy with a HK$102.00 price target. To see the full list of analyst forecasts on Sun Hung Kai Properties stock, see the HK:0016 Stock Forecast page.

Sun Hung Kai Properties Forms Nomination Committee to Enhance Governance

Sun Hung Kai Properties Limited has announced the establishment of a Nomination Committee to ensure fair and transparent director appointments. The committee, composed mainly of independent non-executive directors, will review the board’s structure and composition, assess director independence, and make recommendations for appointments and succession planning. This initiative aims to align the board’s capabilities with the company’s corporate strategy, enhancing governance and operational efficiency.

The most recent analyst rating on (HK:0016) stock is a Hold with a HK$68.00 price target. To see the full list of analyst forecasts on Sun Hung Kai Properties stock, see the HK:0016 Stock Forecast page.