Morningstar

Morningstar, Inc.

Equity Bottom-Up

Sun Hung Kai Properties acquired a land plot in Kai Tak through government tender last week. The latest acquisition totaled HKD 11.3 billion with the accommodation value near HKD 17,500 per square feet, 12% to 28% higher than comparable transactions recorded in November and December. With the plot facing southwest with a view of the Victoria Harbour, we believe the transaction price is high. Over the past two years, the company’s land acquisitions through government tender totaled 2 million…

Sun Hung Kai Properties announced in-line full-year results for fiscal 2018. Underlying profit was HKD 30.4 billion, with underlying EPS of HKD 10.49, both up 17% year on year. The results are in line with our estimate of HKD 30.2 billion. The company declared a final dividend of HKD 3.45 per share, bringing the full-year dividend to HKD 4.65 per share, up 13% year on year. The dividend payout ratio is slightly lower from a year ago at 44%, similar to the historical average. Gearing rose a bit…

Sun Hung Kai Properties, or SHKP, announced it won a government land tender for a site in Kai Tak area for HKD 25 billion, a record breaking amount for the city. The 17,000 square meter, or sqm, site has a maximum permitted gross floor area, or GFA, of 131,500 sqm. Despite the record break price amid a very elevated residential property market, we believe the company’s risk is well managed due to: first, robust property sales the company has achieved in 2017 reducing its overall exposure to the…

Sun Hung Kai Properties announced its interim result for fiscal year 2017/2018. Underlying profit was HKD 20 billion, up 37% year on year. Underlying EPS was HKD 6.90, compared with HKD 5.05 for the same period last year. Underlying earnings were about 70% of our initial full-year projection. The company declared an interim dividend of HKD 1.20 per share, up 9% year on year. The results are better than we expected, due to higher margin on booked Hong Kong development properties. We adjusted our…

During the second half of 2017, the Hong Kong residential market remained robust, enabling Sun Hung Kai Properties to achieve higher launch prices than seen during the first half of the year. Further, given the continued recovery in the city’s retail sales, the company should also see higher rental income from its retail assets. We are adjusting the company’s earnings for fiscal year 2018 and 2019 up by 3% and 4%, respectively. Our fair value estimate of HKD 150, and our narrow moat rating are…

Hong Kong

Sun Hung Kai Properties Limited develops and invests in properties. The Company operates and manages hotels, properties, car parking, and transportation infrastructures. Sun Hung Kai Properties serves customers in Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00