Sun Hung Kai & Co. Limited (HK:0086)
:0086
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Sun Hung Kai & Co. Limited
(0086)
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Rating:71Outperform
Price Target:
HK$5.00
▲(26.58% Upside)
Action:UpgradedDate:12/30/25
The score is driven primarily by attractive valuation (low P/E and high dividend yield) and solid technical positioning (price above key moving averages with positive MACD). Financial performance is improving (return to profitability and strong cash generation) but is tempered by a sharp revenue decline and multi-year volatility.
Positive Factors
Cash generation quality
Strong 2024 operating and free cash flow with FCF roughly 1.0x net income indicates durable earnings quality and cash conversion. This supports sustainable dividend capacity, deleveraging or reinvestment into the business, providing a buffer through economic cycles.
Negative Factors
Sharp revenue decline
A ~21% drop in revenue in 2024 weakens the top-line base that funds margins and growth. Persistent top-line contraction can compress operating leverage, limit reinvestment capacity, and signal waning client activity or competitiveness, undermining sustainable profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation quality
Strong 2024 operating and free cash flow with FCF roughly 1.0x net income indicates durable earnings quality and cash conversion. This supports sustainable dividend capacity, deleveraging or reinvestment into the business, providing a buffer through economic cycles.
Read all positive factors
Sun Hung Kai & Co. Limited (0086) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.41B
Dividend Yield6.47%
Average Volume (3M)695.08K
Price to Earnings (P/E)4.9
Beta (1Y)0.61
Revenue Growth28.71%
EPS GrowthN/A
CountryHK
Employees978
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding1,964,958,500
10 Day Avg. Volume654,167
30 Day Avg. Volume695,082
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.25
Price to Sales (P/S)2.30
P/FCF Ratio2.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.6
Revenue Forecast (FY)HK$3.75B
Sun Hung Kai & Co. Limited Business Overview & Revenue Model
Company Description
Sun Hung Kai & Co. Limited, an investment holding company, provides financial services in Hong Kong and the People's Republic of China. The company operates through Consumer Finance, Private Credit, Mortgage Loans, Investment Management, and Group...
How the Company Makes Money
Sun Hung Kai & Co. Limited generates revenue through several key streams. Primarily, the company earns money from its investment management services, where it charges management and performance fees on assets under management. Additionally, the co...
Sun Hung Kai & Co. Limited Financial Statement Overview
Summary
Income Statement
50
Neutral
Balance Sheet
62
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.90B | 2.32B | 2.20B | 2.34B | 6.98B | 6.68B |
| Gross Profit | 2.90B | 2.32B | 1.76B | 1.86B | 6.57B | 6.34B |
| EBITDA | 2.65B | 0.00 | 1.42B | 169.20M | 4.71B | 4.19B |
| Net Income | 1.19B | 377.70M | -471.40M | -1.53B | 2.81B | 2.55B |
Balance Sheet | ||||||
| Total Assets | 37.65B | 37.30B | 40.87B | 42.91B | 48.79B | 44.08B |
| Cash, Cash Equivalents and Short-Term Investments | 3.50B | 4.33B | 6.46B | 5.73B | 5.86B | 7.25B |
| Total Debt | 11.21B | 11.84B | 15.18B | 15.98B | 18.64B | 16.93B |
| Total Liabilities | 12.59B | 13.05B | 16.47B | 17.36B | 20.25B | 18.13B |
| Stockholders Equity | 22.00B | 21.15B | 21.27B | 22.36B | 25.08B | 22.63B |
Cash Flow | ||||||
| Free Cash Flow | 405.50M | 1.86B | 1.59B | 3.92B | -1.53B | 1.60B |
| Operating Cash Flow | 421.70M | 1.88B | 1.65B | 3.99B | -1.47B | 1.73B |
| Investing Cash Flow | 681.00M | 209.60M | 871.10M | -121.20M | -596.60M | 979.70M |
| Financing Cash Flow | -3.75B | -4.17B | -1.75B | -3.78B | 596.70M | -1.23B |
Sun Hung Kai & Co. Limited Technical Analysis
Neutral
3.95
Price Trends
4.29
Negative
4.12
Positive
3.92
Positive
Market Momentum
-0.02
Positive
46.26
Neutral
65.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0086, the sentiment is Neutral. The current price of 3.95 is below the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.29, and above the 200-day MA of 3.92, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 65.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0086.
Sun Hung Kai & Co. Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$6.92B | 5.14 | 5.14% | 11.28% | 0.59% | -5.95% | |
72 Outperform | HK$3.46B | 6.57 | 11.00% | 6.92% | 4.78% | 24.02% | |
71 Outperform | HK$8.41B | 4.91 | 5.71% | 6.47% | 28.71% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | HK$1.37B | 4.31 | 8.51% | 7.43% | 1.11% | 3.98% | |
58 Neutral | HK$704.85M | 1.97 | 12.27% | 9.77% | 16.56% | 110.71% |
* Financial Sector Average
HK:0086
Sun Hung Kai & Co. Limited
4.30
1.67
63.62%
HK:3903
Hanhua Financial Holding Co., Ltd. Class H
0.17
0.00
0.00%
HK:0900
AEON Credit Service (Asia) Co., Ltd.
8.27
2.75
49.82%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.85
0.09
11.84%
HK:1905
Haitong Unitrust International Financial Leasing Co., Ltd Class H
0.84
0.12
16.67%
HK:2003
VCREDIT Holdings Limited
1.45
-2.21
-60.38%
Sun Hung Kai & Co. Limited Corporate Events
Sun Hung Kai & Co. Adopts Alternative Public Float Threshold to Enhance Capital Management Flexibility
Dec 31, 2025
Sun Hung Kai Co. Limited has elected to switch from relying on the Initial Prescribed Threshold to the Alternative Threshold under the amended Listing Rules governing minimum public float requirements, which take effect on 1 January 2026. The boa...
Sun Hung Kai & Co. Commits Up to US$100 Million to Trian Partners Co-Investment Fund for Janus Henderson Deal
Dec 22, 2025
Sun Hung Kai Co. Limited has committed up to US$100 million (about HK$778 million) via an indirect wholly owned subsidiary to a new co-investment fund managed by U.S. activist investor Trian Partners, which is being formed to participate in the a...
Sun Hung Kai & Co. Signs New Three-Year Connected Property Lease Frameworks with Allied Group and Art View
Dec 19, 2025
Sun Hung Kai Co. Limited has entered into two new master lease agreements with its controlling shareholder Allied Group Limited (AGL) and AGL-associated entity Art View, allowing group members to enter into, renew or amend tenancies, sub-tenancie...
Sun Hung Kai & Co. Renews Management Services Sharing Agreement With Majority Shareholder AGL
Dec 19, 2025
Sun Hung Kai Co. Limited has renewed its sharing of management services arrangement with its majority shareholder, Allied Group Limited, by entering into a new agreement covering the period from 1 January 2026 to 31 December 2028. Under this agre...
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.