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, Data Centre Operations, and Other Businesses. The company was founded in 1963 and is headquartered in Hong Kong.

Financial Highlights

Jun 2022	HKD	USD
Revenue	78,498M	10,058.10M
Gross Profit	40,534M	5,193.70M
Operating income	33,454M	4,286.52M
Income before tax	28,996M	3,715.31M
Net income	25,560M	3,275.05M
EBITDA	38,509M	4,934.23M
Diluted EPS	8.82	1.13
Dividends Per Share	4.95	0.63
Total Assets	807,567M	102,914.76M
Total liabilities	200,823M	25,592.49M
Total equity	601,946M	76,710.82M
Operating cash flow	15,192M	1,946.58M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Jun 2018	Jun 2019	Jun 2020	Jun 2021	Jun 2022
Revenue	87,120M	86,126M	83,492M	85,240M	78,498M
Gross Profit	43,345M	45,654M	42,963M	44,726M	40,534M
Operating income	33,788M	35,496M	35,451M	36,952M	33,454M
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	38,509M
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	15,192M

	Jun 2018	Jun 2019	Jun 2020	Jun 2021	Jun 2022
Revenue	11,134.04M	10,985.35M	10,711.44M	10,989.96M	10,058.10M
Gross Profit	5,539.54M	5,823.15M	5,511.85M	5,766.50M	5,193.70M
Operating income	4,318.15M	4,527.50M	4,548.11M	4,764.20M	4,286.52M
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	4,934.23M
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	1,946.58M

Valuation Measures

Jun 2022
PER	10.50
ROA	3.18%
ROE	4.27%
Operating margin	42.61%
Profit margin	32.56%

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 (27.4%)
KWOK KAI FAI (7.5%)
KWOK KAI CHUN (7.2%)
The Vanguard Group, Inc. (1.5%)
BlackRock Fund Advisors (1.1%)
Norges Bank Investment Management (0.8%)
Hang Seng Investment Management Ltd. (0.5%)
BlackRock Investment Management (UK) Ltd. (0.5%)
Capital Research & Management Co. (Global Investors) (0.4%)
BlackRock Advisors (UK) 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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Last Updated on 2 Jun, 2023