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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 2021 HKDUSD
Revenue85,240M10,989.96M
Gross Profit44,726M5,766.50M
Operating income36,952M4,764.20M
Income before tax33,704M4,345.44M
Net income26,686M3,440.61M
EBITDA42,156M5,435.15M
Diluted EPS9.201.18
Dividends Per Share4.950.63
Total Assets796,419M102,554.00M
Total liabilities196,793M25,340.81M
Total equity593,820M76,465.55M
Operating cash flow15,807M2,037.99M
Currency in HKDCurrency in USD

Historical Data

 Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021
Revenue 79,369M 87,120M 86,126M 83,492M 85,240M
Gross Profit 36,904M 43,345M 45,654M 42,963M 44,726M
Operating income 27,774M 33,788M 35,496M 32,935M 36,952M
Income before tax 49,225M 59,356M 54,483M 28,912M 33,704M
Net income 41,782M 49,951M 44,912M 23,521M 26,686M
EBITDA 31,700M 37,780M 40,103M 40,044M 42,156M
Diluted EPS 14.43 17.24 15.50 8.11 9.20
Dividends Per Share 4.10 4.65 4.95 4.95 4.95
Total Assets 639,416M 715,486M 751,162M 797,831M 796,419M
Total liabilities 135,963M 170,941M 179,156M 211,229M 196,793M
Total equity 498,215M 539,098M 566,405M 571,813M 593,820M
Operating cash flow 39,807M 7,173M 19,594M 47,674M 15,807M
 Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021
Revenue 10,220.71M 11,134.04M 10,985.35M 10,711.44M 10,989.96M
Gross Profit 4,752.29M 5,539.54M 5,823.15M 5,511.85M 5,766.50M
Operating income 3,576.58M 4,318.15M 4,527.50M 4,225.33M 4,764.20M
Income before tax 6,338.93M 7,585.77M 6,949.29M 3,709.20M 4,345.44M
Net income 5,380.46M 6,383.80M 5,728.51M 3,017.58M 3,440.61M
EBITDA 4,082.15M 4,828.33M 5,115.12M 5,137.36M 5,435.15M
Diluted EPS 1.85 2.20 1.97 1.04 1.18
Dividends Per Share 0.52 0.59 0.63 0.63 0.63
Total Assets 81,908.68M 91,197.57M 96,148.74M 102,939.95M 102,554.00M
Total liabilities 17,416.75M 21,788.55M 22,931.96M 27,253.77M 25,340.81M
Total equity 63,820.94M 68,714.73M 72,499.84M 73,778.03M 76,465.55M
Operating cash flow 5,126.13M 916.71M 2,499.21M 6,116.24M 2,037.99M

Valuation Measures

Jun 2021
PER12.56
ROA3.34%
ROE4.57%
Operating margin43.35%
Profit margin31.30%

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 (27.0%)
  • KWOK KAI FAI (7.4%)
  • KWOK KAI CHUN (7.2%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.0%)
  • Norges Bank Investment Management (0.8%)
  • APG Asset Management NV (0.5%)
  • BlackRock Advisors (UK) Ltd. (0.5%)
  • FIL Investment Management (Singapore) Ltd. (0.3%)
  • State Street Global Advisors Asia 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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