Sun Hung Kai & Co. Limited (HK:0086)
:0086
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Sun Hung Kai & Co. Limited
(0086)
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Rating:70Outperform
Price Target:
HK$5.00
â–²(26.58% Upside)
Action:Reiterated
Date:04/15/26
The score is driven by attractive valuation (low P/E and high dividend yield) and a constructive technical setup with price above key moving averages. Financial performance is improved in 2025 but tempered by multi-year earnings and cash-flow volatility, which limits the overall score.
Positive Factors
Diversified revenue streams
The firm earns management/advisory fees, performance fees and investment income, creating multiple durable cash sources. This mix provides a recurring fee base plus performance upside and balance-sheet returns, supporting medium-term cash generation and resilience versus a single revenue line.
Negative Factors
Volatile earnings and cash flow
Multi-year volatility and episodic negative operating/free cash flow indicate earnings are not consistently reliable. This unpredictability undermines confidence in sustainable distributions, capital allocation and planning. Even with a 2025 recovery, prior losses highlight structural sensitivity to business cycles and investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
The firm earns management/advisory fees, performance fees and investment income, creating multiple durable cash sources. This mix provides a recurring fee base plus performance upside and balance-sheet returns, supporting medium-term cash generation and resilience versus a single revenue line.
Read all positive factors
Sun Hung Kai & Co. Limited (0086) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$7.86B
Dividend Yield6.47%
Average Volume (3M)695.08K
Price to Earnings (P/E)5.0
Beta (1Y)0.57
Revenue Growth27.07%
EPS Growth322.17%
CountryHK
Employees978
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.81
Shares Outstanding1,963,746,500
10 Day Avg. Volume654,167
30 Day Avg. Volume695,082
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.35
Price to Sales (P/S)1.46
P/FCF Ratio3.78
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 enterprise, offers a diverse array of financial services across Hong Kong and mainland China. The company structures its operations into several key divisions: Consumer Finance, Private Credit, Mor...
How the Company Makes Money
The company makes money primarily by earning fees and investment returns from its investment-related activities: (1) Management and advisory fees: revenue generated from managing assets and investment products (e.g., funds or discretionary mandate...
Sun Hung Kai & Co. Limited Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.38B | 2.32B | 2.20B | 2.34B | 6.98B |
| Gross Profit | 4.78B | 2.32B | 1.76B | 1.86B | 6.57B |
| EBITDA | 2.80B | 1.03B | 1.42B | 169.20M | 4.71B |
| Net Income | 1.59B | 377.70M | -471.40M | -1.53B | 2.81B |
Balance Sheet | |||||
| Total Assets | 38.71B | 37.30B | 40.87B | 42.91B | 48.79B |
| Cash, Cash Equivalents and Short-Term Investments | 7.84B | 4.33B | 6.46B | 5.73B | 5.86B |
| Total Debt | 10.92B | 11.84B | 15.18B | 15.98B | 18.64B |
| Total Liabilities | 13.18B | 13.05B | 16.47B | 17.36B | 20.25B |
| Stockholders Equity | 22.34B | 21.15B | 21.27B | 22.36B | 25.08B |
Cash Flow | |||||
| Free Cash Flow | 2.07B | 1.86B | 1.59B | 3.92B | -1.53B |
| Operating Cash Flow | 2.14B | 1.88B | 1.65B | 3.99B | -1.47B |
| Investing Cash Flow | -358.50M | 209.60M | 871.10M | -121.20M | -596.60M |
| Financing Cash Flow | -1.69B | -4.17B | -1.75B | -3.78B | 596.70M |
Sun Hung Kai & Co. Limited Technical Analysis
Negative
3.95
Price Trends
4.15
Negative
4.15
Negative
3.98
Positive
Market Momentum
-0.03
Positive
46.05
Neutral
40.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0086, the sentiment is Negative. The current price of 3.95 is below the 20-day moving average (MA) of 4.13, below the 50-day MA of 4.15, and below the 200-day MA of 3.98, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$7.86B | 4.96 | 5.71% | 6.47% | 27.07% | 322.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | HK$18.84B | 3.23 | 11.65% | 5.84% | -2.83% | 11.78% | |
60 Neutral | HK$3.51B | 7.10 | 10.64% | 6.92% | 3.01% | 16.01% | |
54 Neutral | HK$23.94B | 5.05 | 7.55% | 6.69% | -5.86% | -4.69% |
* Financial Sector Average
HK:0086
Sun Hung Kai & Co. Limited
4.02
0.86
27.38%
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China Development Bank Financial Leasing Co Ltd Class H
1.49
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-9.09%
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AEON Credit Service (Asia) Co., Ltd.
8.38
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Far East Horizon Limited
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Qfin Holdings
57.85
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-63.86%
HK:6623
Lufax Holding Ltd Class A
10.90
0.00
0.00%
Sun Hung Kai & Co. Limited Corporate Events
Sun Hung Kai & Co. Sets 2026 AGM and Seeks Fresh Share Issuance Mandate
Apr 13, 2026
Sun Hung Kai Co. Limited has called its annual general meeting for 27 May 2026 in Hong Kong, where shareholders will review and adopt the audited consolidated financial statements and directors’ and auditor’s reports for the year ende...
Sun Hung Kai & Co. Triples 2025 Profit as Alternative Investment Platform Scales Up
Mar 19, 2026
Sun Hung Kai Co. Limited reported that 2025 was a pivotal year in its strategic transformation into a fully integrated alternative investment platform, with its Alternative Solutions, Investment Management, and Credit businesses now aligned to dr...
Sun Hung Kai & Co. Declares Second Interim Dividend of HKD 0.15 Per Share for 2025
Mar 19, 2026
Sun Hung Kai Co. Limited has declared a second interim ordinary dividend of HKD 0.15 per share for the financial year ending 31 December 2025, reinforcing its shareholder return policy. The shares will trade ex-dividend on 4 May 2026, with the re...
Sun Hung Kai & Co. Announces Board and Committee Changes Ahead of 2026 AGM
Mar 19, 2026
Sun Hung Kai Co. Limited announced planned board changes taking effect after its annual general meeting on 27 May 2026, with independent non-executive director Vivian Alexa Kao and non-executive director Simon Chow Wing Charn both retiring to foc...
Sun Hung Kai & Co. Sets Out Board and Committee Structure
Mar 19, 2026
Sun Hung Kai Co. Limited has announced the current composition of its board of directors, detailing the roles of its executive, non‑executive, and independent non‑executive members, including the Group Executive Chairman, Deputy Chief...
Sun Hung Kai & Co. Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 9, 2026
Sun Hung Kai Co. Limited has scheduled a board meeting for 19 March 2026 to review and approve the consolidated final results of the company and its subsidiaries for the financial year ended 31 December 2025, ahead of their planned publication. T...
Sun Hung Kai & Co. flags sharp profit surge on strong investment income
Mar 9, 2026
Sun Hung Kai Co. Limited has announced that it expects a sharp jump in earnings for 2025, with consolidated profit attributable to shareholders forecast at not less than HK$1.5 billion, compared with HK$377.7 million in 2024. The surge in profit ...
Sun Hung Kai & Co. Switches to Alternative Public Float Threshold to Boost Capital Flexibility
Feb 2, 2026
Sun Hung Kai Co. Limited has disclosed that, as of 31 January 2026, approximately 24.54% of its issued share capital is held by the public, after the trustee of its employee Share Award Scheme acquired additional shares that have not yet been gra...
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.