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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, which engages in the development of property for sale and investment. It operates through the following segments: Property Development, Property Investment, Hotel Operation, Telecommunications, Transport Infrastructure and Logistics, and Other Businesses. The company was founded on July 14, 1972 and is headquartered in Hong Kong.

Financial Highlights

Jun 2019 HKDUSD
Revenue86,126M10,985.35M
Gross Profit45,654M5,823.15M
Operating income35,496M4,527.50M
Income before tax54,483M6,949.29M
Net income44,912M5,728.51M
EBITDA40,103M5,115.12M
Diluted EPS15.501.97
Dividends Per Share4.950.63
Total Assets751,162M96,148.74M
Total liabilities179,156M22,931.96M
Total equity566,405M72,499.84M
Operating cash flow19,594M2,499.21M
Currency in HKDCurrency in USD

Historical Data

 Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019
Revenue 67,491M 92,128M 79,369M 87,120M 86,126M
Gross Profit 28,435M 35,631M 36,904M 43,345M 45,654M
Operating income 20,484M 26,937M 27,774M 33,788M 35,496M
Income before tax 31,585M 35,570M 49,225M 59,356M 54,483M
Net income 31,082M 32,666M 41,782M 49,951M 44,912M
EBITDA 24,901M 31,176M 31,700M 37,780M 40,103M
Diluted EPS 10.98 11.30 14.43 17.24 15.50
Dividends Per Share 3.35 3.85 4.10 4.65 4.95
Total Assets 604,110M 614,515M 639,416M 715,486M 751,162M
Total liabilities 147,292M 140,007M 135,963M 170,941M 179,156M
Total equity 451,026M 468,707M 498,215M 539,098M 566,405M
Operating cash flow 13,372M 15,411M 39,807M 7,173M 19,594M
 Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019
Revenue 8,704.36M 11,872.99M 10,220.71M 11,134.04M 10,985.35M
Gross Profit 3,667.28M 4,591.94M 4,752.29M 5,539.54M 5,823.15M
Operating income 2,641.83M 3,471.50M 3,576.58M 4,318.15M 4,527.50M
Income before tax 4,073.54M 4,584.08M 6,338.93M 7,585.77M 6,949.29M
Net income 4,008.66M 4,209.82M 5,380.46M 6,383.80M 5,728.51M
EBITDA 3,211.50M 4,017.80M 4,082.15M 4,828.33M 5,115.12M
Diluted EPS 1.41 1.45 1.85 2.20 1.97
Dividends Per Share 0.43 0.49 0.52 0.59 0.63
Total Assets 77,924.03M 79,211.00M 81,908.68M 91,197.57M 96,148.74M
Total liabilities 18,999.16M 18,046.90M 17,416.75M 21,788.55M 22,931.96M
Total equity 58,177.76M 60,416.34M 63,820.94M 68,714.73M 72,499.84M
Operating cash flow 1,724.59M 1,986.09M 5,126.13M 916.71M 2,499.21M

Valuation Measures

Jun 2019
PER8.54
ROA6.12%
ROE8.12%
Operating margin41.21%
Profit margin52.14%

Key executives

  • Chairman & Managing Director: Ping Luen Kwok
  • Executive Director & Deputy Managing Director: Chik Wing Wong
  • Executive Director & Deputy Managing Director: Ting Lui
  • Manager: Pak Cheung Hong
  • Manager: Wing Kit Tsim

Shareholders

  • KWOK TAK SENG FAMILY (26.5%)
  • LEE SHAU KEE (2.1%)
  • The Vanguard Group, Inc. (1.6%)
  • Capital Research & Management Co. (Global Investors) (1.6%)
  • BlackRock Fund Advisors (1.0%)
  • Norges Bank Investment Management (0.7%)
  • Capital Research & Management Co. (World Investors) (0.7%)
  • BlackRock Investment Management LLC (0.5%)
  • BlackRock Advisors LLC (0.4%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.4%)

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

    Last Updated on 14 Oct, 2019

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