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Sun Hung Kai Properties Ltd 00016

Morningstar Rating
HK$70.40 −1.65 (2.29%)
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Company Report

Hong Kong Developers: Housing Market Retreats After Initial Rebound, Sector Remains Undervalued

We still see value in Hong Kong developers despite the recent slowdown in home sale transactions. Our preferred pick in the sector is Henderson Land, which trades at a 37% discount to our fair value estimate and offers an attractive 2024 dividend yield of 8.4% at the current price. We also like its diversified recurring income stream generated by its investment properties portfolio and stable contribution from its utility associate.

Price vs Fair Value

00016 is trading at a 119% premium.
Price
HK$72.05
Fair Value
HK$355.00
Uncertainty
Medium
1-Star Price
HK$814.72
5-Star Price
HK$99.50
Economic Moat
Btf
Capital Allocation
Sdndqvbd

Bulls Say, Bears Say

Bulls

The company’s well-located office and retail portfolios in Hong Kong are expected to continue to perform well in years to come, underpinned by steady growth in tenant demand and ongoing supply side constraints.

Bears

Hong Kong residential property prices have softened due to the elevated interest-rate environment. If interest rates stay higher for longer, the company’s development profits will be compressed.

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News

Trading Information

Previous Close Price
HK$72.05
Day Range
HK$70.0571.60
52-Week Range
HK$65.3099.60
Bid/Ask
HK$70.35 / HK$70.40
Market Cap
HK$204.02 Bil
Volume/Avg
2.9 Mil / 3.9 Mil

Key Statistics

Price/Earnings (Normalized)
8.82
Price/Sales
2.93
Dividend Yield (Trailing)
6.45%
Dividend Yield (Forward)
6.45%
Total Yield
6.46%

Company Profile

Sun Hung Kai Properties is a diversified real estate developer in Hong Kong with a core focus on the residential, retail and office real estate segment. Most of its business is based in Hong Kong where it is a leading private housing developer and holds a portfolio of high-quality retail and office assets for rental income. The company also invests in other listed entities, including telecommunication company, SmarTone and data center provider, SUNeVision. The Kwok family is the controlling shareholder, with a stake of more than 40%.
Sector
Real Estate
Industry
Real Estate - Development
Stock Style Box
Large Value
Total Number of Employees
40,000

Competitors

Valuation

Metric
00016
01972
00017
Price/Earnings (Normalized)
8.8210.0055.09
Price/Book Value
0.350.270.10
Price/Sales
2.935.240.27
Price/Cash Flow
8.3811.5339.20
Price/Earnings
00016
01972
00017

Financial Strength

Metric
00016
01972
00017
Quick Ratio
0.370.480.45
Current Ratio
3.761.031.12
Interest Coverage
9.077.922.12
Quick Ratio
00016
01972
00017

Profitability

Metric
00016
01972
00017
Return on Assets (Normalized)
2.89%2.11%2.03%
Return on Equity (Normalized)
3.89%2.54%5.86%
Return on Invested Capital (Normalized)
3.52%2.33%2.97%
Return on Assets
00016
01972
00017
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Real Estate - Development Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Sun Hung Kai Properties Ltd
SUHJF
Nvj$26.7 Bil
Sun Hung Kai Properties Ltd ADR
SUHJY
Yjcb$26.7 Bil
China Resources Land Ltd
CRBJF
Jggc$24.7 Bil
China Resources Land Ltd ADR
CRBJY
Vbvcs$24.7 Bil
China Overseas Land & Investment Ltd ADR
CAOVY
Scrx$18.9 Bil
China Overseas Land & Investment Ltd
CAOVF
Spxm$18.9 Bil
Daiwa House Industry Co Ltd ADR
DWAHY
Cyhpy$17.0 Bil
Daiwa House Industry Co Ltd
DWAHF
Tqsc$17.0 Bil
CK Asset Holdings Ltd ADR
CNGKY
Zflqdt$13.7 Bil
CK Asset Holdings Ltd
CHKGF
Mmvvj$13.7 Bil

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