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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 2020 HKDUSD
Revenue83,492M10,711.44M
Gross Profit42,963M5,511.85M
Operating income32,935M4,225.33M
Income before tax28,912M3,709.20M
Net income23,521M3,017.58M
EBITDA40,044M5,137.36M
Diluted EPS8.111.04
Dividends Per Share4.950.63
Total Assets797,831M102,939.95M
Total liabilities211,229M27,253.77M
Total equity571,813M73,778.03M
Operating cash flow47,674M6,116.24M
Currency in HKDCurrency in USD

Historical Data

 Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020
Revenue 92,128M 79,369M 87,120M 86,126M 83,492M
Gross Profit 35,631M 36,904M 43,345M 45,654M 42,963M
Operating income 26,937M 27,774M 33,788M 35,496M 32,935M
Income before tax 35,570M 49,225M 59,356M 54,483M 28,912M
Net income 32,666M 41,782M 49,951M 44,912M 23,521M
EBITDA 31,176M 31,700M 37,780M 40,103M 40,044M
Diluted EPS 11.30 14.43 17.24 15.50 8.11
Dividends Per Share 3.85 4.10 4.65 4.95 4.95
Total Assets 614,515M 639,416M 715,486M 751,162M 797,831M
Total liabilities 140,007M 135,963M 170,941M 179,156M 211,229M
Total equity 468,707M 498,215M 539,098M 566,405M 571,813M
Operating cash flow 15,411M 39,807M 7,173M 19,594M 47,674M
 Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020
Revenue 11,872.99M 10,220.71M 11,134.04M 10,985.35M 10,711.44M
Gross Profit 4,591.94M 4,752.29M 5,539.54M 5,823.15M 5,511.85M
Operating income 3,471.50M 3,576.58M 4,318.15M 4,527.50M 4,225.33M
Income before tax 4,584.08M 6,338.93M 7,585.77M 6,949.29M 3,709.20M
Net income 4,209.82M 5,380.46M 6,383.80M 5,728.51M 3,017.58M
EBITDA 4,017.80M 4,082.15M 4,828.33M 5,115.12M 5,137.36M
Diluted EPS 1.45 1.85 2.20 1.97 1.04
Dividends Per Share 0.49 0.52 0.59 0.63 0.63
Total Assets 79,211.00M 81,908.68M 91,197.57M 96,148.74M 102,939.95M
Total liabilities 18,046.90M 17,416.75M 21,788.55M 22,931.96M 27,253.77M
Total equity 60,416.34M 63,820.94M 68,714.73M 72,499.84M 73,778.03M
Operating cash flow 1,986.09M 5,126.13M 916.71M 2,499.21M 6,116.24M

Valuation Measures

Jun 2020
PER12.19
ROA3.03%
ROE4.13%
Operating margin39.44%
Profit margin28.17%

Key executives

  • Chairman & Managing Director: Ping Luen Kwok
  • Executive Director & Deputy Managing Director: Chik Wing Wong
  • Executive Director & Deputy Managing Director: Ting Lui
  • Group Chief Accountant: Ching Kam Li
  • Secretary & Group General Counsel: Sheung Tat Yung

Shareholders

  • KWOK TAK SENG FAMILY (26.6%)
  • LEE SHAU KEE (2.1%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.0%)
  • Norges Bank Investment Management (0.8%)
  • BlackRock Advisors LLC (0.4%)
  • BlackRock Investment Management (UK) Ltd. (0.4%)
  • Capital Research & Management Co. (Global Investors) (0.4%)
  • Hang Seng Investment Management Ltd. (0.4%)
  • State Street Global Advisors Asia 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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