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Finance

Sun Hung Kai Properties Ltd.

Company Background

Sun Hung Kai Properties, the largest property developer in Hong Kong, is also its biggest commercial landlord.

SHKP operates many office buildings, shopping malls and luxury hotels, including the 118-story International Commerce Centre in West Kowloon, the tallest building in Hong Kong, and the International Finance Centre in the Central district. It also builds and sells luxury condominiums and other residential properties.

In mainland China, SHKP operates mainly in Shanghai, Guangzhou and other major cities. SHKP is promoting a large-scale development project in Shanghai's Xujiahui district, following Shanghai IFC in Pudong and Shanghai ICC in Puxi.

The company has also entered the information technology business through its subsidiaries: SmarTone Telecommunications Holdings provides mobile phone services, and SUNeVision Holdings runs a data center business.

SHKP was established in the 1960s by Kwok Tak-seng, Fung King-hey and Lee Shau-kee. In the years leading up to the return of Hong Kong to Chinese rule, SHKP became Hong Kong's largest developer through aggressive, large-scale development projects in the New Territories.

Kwok's three sons took over SHKP after he died in 1990. Walter Kwok Ping-sheung, Kwok's first son, was forced to step down as chairman in 2008. His second son, Thomas Kwok Ping-kwong, and third son, Raymond Kwok Ping-luen, were arrested on bribery charges in 2012. Thomas Kwok was convicted of conspiracy to commit misconduct in public office in 2014, while Raymond Kwok was acquitted on all charges. Currently, SHKP is run by Raymond Kwok.

Business Summary

Sun Hung Kai Properties Ltd. is an investment holding company. The firm engages in the development of property for sale and investment. It operates through the following segments: Property Development, Property Investment, Hotel Operation, Telecommunications and Transport Infrastructure and Logistics. The company was founded in 1963 and is headquartered in Hong Kong.

Financial Highlights

Jun 2022 HKDUSD
Revenue78,348M10,038.88M
Gross Profit40,384M5,174.48M
Operating income33,304M4,267.30M
Income before tax28,996M3,715.31M
Net income25,560M3,275.05M
EBITDA38,359M4,915.01M
Diluted EPS8.821.13
Dividends Per Share4.950.63
Total Assets807,567M102,914.76M
Total liabilities200,823M25,592.49M
Total equity601,946M76,710.82M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022
Revenue 87,120M 86,126M 83,492M 85,240M 78,348M
Gross Profit 43,345M 45,654M 42,963M 44,726M 40,384M
Operating income 33,788M 35,496M 35,451M 36,952M 33,304M
Income before tax 59,356M 54,483M 28,912M 33,704M 28,996M
Net income 49,951M 44,912M 23,521M 26,686M 25,560M
EBITDA 37,780M 40,103M 40,044M 42,156M 38,359M
Diluted EPS 17.24 15.50 8.11 9.20 8.82
Dividends Per Share 4.65 4.95 4.95 4.95 4.95
Total Assets 715,486M 751,162M 797,831M 796,419M 807,567M
Total liabilities 170,941M 179,156M 211,229M 196,793M 200,823M
Total equity 539,098M 566,405M 571,813M 593,820M 601,946M
Operating cash flow 7,173M 19,594M 47,674M 15,807M --
 Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022
Revenue 11,134.04M 10,985.35M 10,711.44M 10,989.96M 10,038.88M
Gross Profit 5,539.54M 5,823.15M 5,511.85M 5,766.50M 5,174.48M
Operating income 4,318.15M 4,527.50M 4,548.11M 4,764.20M 4,267.30M
Income before tax 7,585.77M 6,949.29M 3,709.20M 4,345.44M 3,715.31M
Net income 6,383.80M 5,728.51M 3,017.58M 3,440.61M 3,275.05M
EBITDA 4,828.33M 5,115.12M 5,137.36M 5,435.15M 4,915.01M
Diluted EPS 2.20 1.97 1.04 1.18 1.13
Dividends Per Share 0.59 0.63 0.63 0.63 0.63
Total Assets 91,197.57M 96,148.74M 102,939.95M 102,554.00M 102,914.76M
Total liabilities 21,788.55M 22,931.96M 27,253.77M 25,340.81M 25,592.49M
Total equity 68,714.73M 72,499.84M 73,778.03M 76,465.55M 76,710.82M
Operating cash flow 916.71M 2,499.21M 6,116.24M 2,037.99M --

Valuation Measures

Jun 2022
PER10.50
ROA3.18%
ROE4.27%
Operating margin42.50%
Profit margin32.62%

Key executives

  • Chairman & Managing Director: Ping-luen Kwok
  • Executive Director & Deputy Managing Director: Chik Wing Wong
  • Executive Director & Deputy Managing Director: Ting Lui
  • Chief Financial Officer-China Region: Po Kwan Lung
  • Executive Director: Yuk-lun Fung

Shareholders

  • KWOK TAK SENG FAMILY (27.3%)
  • KWOK KAI FAI (7.5%)
  • KWOK KAI CHUN (7.2%)
  • The Vanguard Group, Inc. (1.5%)
  • BlackRock Fund Advisors (1.0%)
  • Norges Bank Investment Management (0.7%)
  • State Street Global Advisors Asia Ltd. (0.4%)
  • BlackRock Advisors (UK) Ltd. (0.4%)
  • APG Asset Management NV (0.4%)
  • BlackRock Investment Management (UK) Ltd. (0.3%)

Contact Details

  • Website:http://www.shkp.com
  • Address: 45th Floor, Sun Hung Kai Centre, Hong Kong, Hong Kong
  • Phone: +852.2827.8111

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Competitors

  • Grand Ocean Retail Group Ltd.
Last Updated on 30 Sep, 2022

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