Sun Hung Kai Properties 0016

[winston]

HK's Sun Hung Kai, Henderson, Wharf team up for 4.6 bln yuan Chengdu project

HONG KONG (XFN-ASIA) - Sun Hung Kai Properties Ltd (SHKP) said it will partner with Wharf (Holdings) and Henderson Land to develop a major integrated residential and commercial complex on a prime site in Chengdu, that involves total investment of 4.587 bln yuan.

SHKP will take 40 pct stake in the joint venture, while Wharf and Henderson will each own 30 pct.

Based on their respective holdings, SHKP, Wharf and Henderson will advance to the joint venture shareholders loans of up to 1.835 bln yuan, 1.376 bln yuan and 1.376 bln yuan respectively.

The development, with total gross floor area of 13 mln sq ft, will comprise an office tower of over 280 metres rivaling the prestigious Two IFC in Hong Kong, with a five-star hotel, high-end shopping centre with international retailers and residences, it said.

The project will meet the needs of multinationals needing top-noth office space, and discerning business people and travellers looking for premium accommodation, Sun Hung Kai said.

[helios]

Kwok breaks silence on SHKP family feud
Katherine Ng; Wednesday, June 25, 2008

Walter Kwok Ping-sheung, the eldest brother at the heart of controversy surrounding property giant Sun Hung Kai Properties (0016), has finally broken his silence over the issues dogging the company.

Winston must have gd hindsight on his 0016 call ...

today, i went back to read on e family love-hatred feuds, biting news indeed ...

[winston]

Vested.

Walter eyes less family control
Katherine Ng
Tuesday, July 29, 2008

Walter Kwok Ping-sheung, the ousted chairman of Hong Kong's largest property company, said family influence at Sun Hung Kai Properties (0016) should be lessened if it becomes a multinational firm.

In an interview with the Financial Times, Kwok also called for the establishment of a family committee to settle any disputes among family members, and an introduction of more independent directors, to ensure improved corporate governance.

"I think we should be more flexible to have the most suitable person fulfilling the key positions rather than by the family [which controls 42.5 percent stake]," he said.

Speaking in his new capacity as an independent director, the eldest Kwok told the international press that SHKP should be "empowering [independent directors] to have a greater say."

He added: "The disputes [between he and his two brothers] could not have happened in a large multinational."

An SHKP spokeswoman yesterday dismissed Kwok's charges, saying what he mentioned are two separate issues.

"All major business decisions are made by the board of directors, and were not decided by family members or individuals," she said.

"We have been recognized so many times as [one of those companies] with best corporate governance which shows we are doing well."

The spokeswoman added that all decisions are made by respected business leaders and executives.

"It would be a backward move if we set up a family committee," she said.

Walter Kwok also said SHKP has devoted too much of its business - 70 percent - to residential property and should diversify more into tourism and insurance.

Kwok agreed that for the time being, his mother - the family matriarch Kwong Siu-hing - is the best person to take the helm as the chairman of SHKP.

[winston]

Vested.

SHKP plans eco-resort

Sun Hung Kai Properties (0016), the city's largest developer, has submitted application to the Town Planning Board to build an eco-resort zone at Shum Chung, one of those 12 selected New Territories sites the government classified ecological conservation areas.

The developer plans to build a hotel there consisting of 60 three-story resort blocks.

"This is the first project SHKP involves in ecological conservation," a spokeswoman told The Standard today. "We will set up an advisory committee with environmental activists as members, to make sure the low density project is environmental friendly."

At initial stage, the developer will include mangroves and rebuild the river routes in enhancing ecological environment at Shum Chung. There will be wetlands and eco-tourism development

[winston]

WEN WEI PO

-- Citi has lowered Sun Hung Kai Properties' (0016.HK: Quote, Profile, Research, Stock Buzz) target price to HK$89 a share.

[winston]

Lack of launches limits SHKP
Alfred Liu

Sun Hung Kai Properties (0016) is expected to announce on Thursday a mere 1 percent increase in year-end underlying profit, after a lack of major launches during the period.

The property developer will report an underlying profit of HK$11.6 billion for the year ended June 30, up from HK$11.5 billion a year ago, according to a poll of four investment banks.

"While rental income is expected to increase by 14 percent [to HK$4.98 billion], we expect the consolidated development earnings to fall by 35 percent [to HK$3.71 billion], due to the lack of large-scale launches," said Credit Suisse analyst Cusson Leung.

The main source of developments, according to analysts, is expected to come from the sale of inventory of Harbour Green in Tai Kok Tsui, Severn 8 on The Peak and The Arch at Kowloon Station.

"In the first half, SHKP recognized HK$3.74 billion development profit, and we expect HK$2.75 billion development profit to be booked in the second half," said analyst Raymond Ngai at JPMorgan. He estimates total development profit, including share of associates and jointly- controlled entities, to fall 16 percent to HK$6.48 billion as the developer has deferred the launch of The Cullinan at Kowloon Station to next year.

Meanwhile, Ken Yeung at Deutsche Bank said he expects the developer's property earnings to drop 31 percent year-on-year to HK$4 billion.

JPMorgan said it expects the company to maintain its final dividend per share at HK$1.60.

[winston]

Sun Hung Kai Full-Year Underlying Profit Rises 6% on Rents
By Kelvin Wong

Sept. 11 (Bloomberg) -- Sun Hung Kai Properties Ltd., Hong Kong's biggest developer by market value, said underlying full- year profit rose 6 percent because of higher rental income.

Net income excluding property revaluations was HK$12.19 billion ($1.6 billion) for the year ended June 30, compared with HK$11.5 billion a year earlier, the developer said today in a statement to Hong Kong's stock exchange. The median estimate of 14 analysts was HK$11.9 billion.

Sun Hung Kai's earnings were helped by growth in office and shopping mall rentals, which compensated for a decline in profit from property development after several apartment projects were delayed. The company may start selling as many as six projects in the next two years, Deutsche Bank AG said last month.

``Developers are still selling properties at some really good prices,'' Francis Lun, general manager at Hong Kong-based Fulbright Securities Ltd., said before the earnings. ``You can expect Sun Hung Kai's earnings to stay strong over the next couple of years.''

Sun Hung Kai dropped 1.6 percent to HK$91.30 in Hong Kong trading today. The stock is down 45 percent this year, compared with the 30 percent drop in the benchmark index.

Revenue from residential sales fell 32 percent to HK$11.5 billion after the company delayed the launch of its Cullinan project in the West Kowloon district to the fourth quarter.

Rental income rose 14.5 percent to HK$8.26 billion as major companies continued to expand. Hong Kong's prime office rents may grow 15 percent in the 12 months to July, property consultant Colliers International Ltd. said in a July report.

Net income climbed to HK$27.6 billion, or HK$10.87 a share, from HK$21.2 billion, or HK$8.52, a year earlier, on increased gains from property revaluation.

[winston]

BROKER CALL - HK's Sun Hung Kai target cut to 93.4 hkd, kept 'neutral' - Goldman

HONG KONG (XFN-ASIA) - Goldman Sachs cut its target price on Sun Hung Kai Properties (SHKP) to 93.4 hkd from 94.3 after the developer's full year results.

It maintained a "neutral" call on the company.

The property developer announced yesterday that its year to June underlying profit was up by 6 pct to 12.2 bln hkd, 2.8 pct pct below Goldman Sachs' estimate.

The brokerage said SHKP's core profit would have shown a 3 pct decline if stripping out a one bln hkd non-recurring gain from disposal of long term investments.

"As of today, we estimate SHKP has secured less than 1 bln hkd development profit from its Hong Kong and China property sale (for current fiscal year). This amount is some 85 pct away from our full year projection of 7.5 bln hkd," Goldman noted.

The brokerage cut earnings estimates for the company for current fiscal year and the next by 1.5 pct and 0.8 pct, respectively.


"Our concern is that company focus will continue to be on maximizing margins, rather than pushing volume," it said, noting that this sales strategy will increase earnings risk in the near term as macroeconomic headwinds remain.

The brokerage said the share support level may be some 10 pct below the prevailing market price.

At 11.09 am, Sun Hung Kai shares were up 3.0 hkd or 3.29 pct at 94.3

[winston]

Hong Kong Sun Hung Kai Properties' controlling family buys more shares
03 Oct 2008
Xinhua Newsfeed

HONG KONG (XFN-ASIA) - Sun Hung Kai Properties Ltd's controlling family bought an additional 50,000 shares of the company for 3.79 mln hkd on Tuesday.

The Kwok brothers and their mother bought the additional shares at an average price of 75.80 hkd, according to a stock exchange filing.

The family's holding in the property developer stands at about 42 pct.

The Kwok family had earlier bought 500,000 shares of the company for 42.9 mln hkd last Friday.

Sun Hung Kai Properties shares today closed down 2.65 hkd or 3.46 pct at 74.0.

[winston]

BROKER CALL - HK's Sun Hung Kai Properties target cut to 61.85 hkd - Citigroup

HONG KONG (XFN-ASIA) - Citigroup said it has cut its target price on Sun Hung Kai Properties to 61.85 hkd from 84.36 and maintained a "sell" call to factor in a potential 30 pct drop in Hong Kong residential property prices in the next 12 months.

The brokerage also expects 30-40 pct decreases in office, retail and residential rentals over the next 24 months.

"We believe the downward spiral in the Hong Kong property market will continue, leading to further downside to the stock," it said.

It noted that the developer has not launched any major new projects in Hong Kong in its current fiscal year to June 2009.

The planned launch of Peak One project in Shatin and Cullinan on Kowloon Station will see "significant challenges" given the bad market environment, it said.

Citigroup added that Sun Hung Kai is also likely to be hurt by the gloomier outlook for retail, office and hotel markets in Hong Kong.

At 3.08 pm, Sun Hung Kai shares were flat at 68.3 hkd.