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Sun Hung Kai Properties (HK:0016)
:0016
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Sun Hung Kai Properties (0016) AI Stock Analysis

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HK:0016

Sun Hung Kai Properties

(OTC:0016)

Rating:74Outperform
Price Target:
HK$104.00
▲(12.43% 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
Earnings Performance
Underlying profit rose 18% due to higher development earnings and gains on land resumption and sale.
Market Position
Sun Hung Kai Properties is the largest developer in Hong Kong with a sizeable land bank of 19.3msf under development, spread across various subsectors.
Residential Sales
All 318 units at Sierra Sea Ph 1 A (2) on public offer were sold out on the first day of sale.
Negative Factors
Property Demand
Any deterioration in property demand in Hong Kong and China could drag its earnings and share price performance.

Sun Hung Kai Properties (0016) vs. iShares MSCI Hong Kong ETF (EWH)

Sun Hung Kai Properties Business Overview & Revenue Model

Company DescriptionSun 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 MoneySun 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
68
Positive
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
75
Positive
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
71
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue71.51B71.76B78.50B85.24B83.49B
Gross Profit32.21B34.95B40.53B44.73B42.96B
EBITDA31.57B32.47B37.52B42.16B40.04B
Net Income19.05B23.91B25.56B26.75B23.69B
Balance Sheet
Total Assets818.09B805.99B807.57B796.42B797.83B
Cash, Cash Equivalents and Short-Term Investments16.97B15.89B21.02B23.16B32.53B
Total Debt129.65B128.05B126.77B118.61B118.06B
Total Liabilities207.02B199.19B200.82B196.79B211.23B
Stockholders Equity606.72B602.05B601.95B593.82B571.81B
Cash Flow
Free Cash Flow19.89B21.65B11.16B12.60B44.69B
Operating Cash Flow24.52B26.14B15.19B15.81B47.67B
Investing Cash Flow-9.61B-16.06B-9.52B-9.59B-39.69B
Financing Cash Flow-13.11B-13.66B-8.84B-16.79B2.12B

Sun Hung Kai Properties Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price92.50
Price Trends
50DMA
91.85
Negative
100DMA
85.01
Positive
200DMA
79.29
Positive
Market Momentum
MACD
0.20
Positive
RSI
47.65
Neutral
STOCH
34.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0016, the sentiment is Neutral. The current price of 92.5 is below the 20-day moving average (MA) of 93.36, above the 50-day MA of 91.85, and above the 200-day MA of 79.29, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 34.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0016.

Sun Hung Kai Properties Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$265.73B15.252.88%4.08%20.91%-29.29%
63
Neutral
$7.00B13.45-0.52%6.98%3.61%-22.78%
$11.09B5.74
13.28%
$19.97B9.223.63%4.19%
$16.46B10.202.92%5.23%
$28.47B7.5210.17%4.63%
$10.95B17.732.41%13.87%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0016
Sun Hung Kai Properties
92.50
19.63
26.94%
CHVKF
China Vanke Co
0.68
0.20
41.67%
CAOVF
China Overseas Land & Investment
1.83
0.39
27.08%
CHKGF
CK Asset Holdings
4.25
0.57
15.49%
CRBJF
China Resources Land
3.98
1.42
55.47%
SNLAF
Sino Land Co
1.03
0.05
5.10%

Sun Hung Kai Properties Corporate Events

Sun Hung Kai Properties Schedules Board Meeting for Annual Results and Dividend Decision
Aug 1, 2025

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
Jun 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025