Sun Hung Kai Properties 0016

Sun Hung Kai Properties 0016

Postby winston » Mon May 19, 2008 3:01 pm

Not vested.

BROKER CALL - HK's Sun Hung Kai kept 'sell' on mgmt uncertainties - Citigroup

HONG KONG (XFN-ASIA) - Citgroup kept a "sell" call on Sun Hung Kai Properties (SHKP), citing uncertainties related to its controlling Kwok family.

Citigroup's target price on the property developer is 122.36 hkd, representing about 8 pct downside from the current level.

SHKP chairman and CEO Walter Kwok obtained a court injunction last Thursday to prevent the company's board from meeting to vote on his removal.

"Given the potential management instabilities at SHKP, the launch of key property projects planned this year, such as the Cullinan project, might be further delayed, leading to potential downside to (earnings) estimates," Citigroup said.

It added that new investments in China and Hong Kong might also be affected, leading to possible slowdown in the company's growth.

Citigroup said it prefers rival developer Cheung Kong on expectations that unit's Hutchison's 3G business will break even later this year and achieve positive EBIT by 2009.

Its target price on Cheung Kong, tycoon Li Ka-shing's holding company, is 140.81 hkd.

SHKP shares closed the morning session down 1.5 hkd or 1.12 pct at 132.3, while Cheung Kong was up 2.1 hkd or 1.64 pct at 130.5.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Sun Hung Kai Properties 0016

Postby kennynah » Mon May 19, 2008 3:59 pm

w : i thought this SHK will be delisted soon, along with PCCW ?
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Re: Sun Hung Kai Properties 0016

Postby winston » Mon May 19, 2008 4:42 pm

kennynah wrote:w : i thought this SHK will be delisted soon, along with PCCW ?


No lah, not delisted.

PCCW & Cheung Kong Infra will be taken off the HSI index only.

The issue now at SHKP is the battle between the three brothers. Good to pick some later. Let the fund managers sell first..
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Re: Sun Hung Kai Properties 0016

Postby winston » Tue May 27, 2008 10:57 am

The board of directors will meet at 11am to decide on the fate of the elder brother.

All indications points to the brother being ousted and the mother would take over things.

The share price has dropped about 10% over the week.

I just bought a call. Wish me luck !
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Re: Sun Hung Kai Properties 0016

Postby winston » Tue May 27, 2008 2:39 pm

Hong Kong's Sun Hung Kai Props appoints Kwong Siu-hing as new chairwoman

HONG KONG (XFN-ASIA) - Sun Hung Kai Properties Ltd said its board of directors has appointed Kwong Siu-hing as the new chairwoman of the company and non-executive director with effect from today.

She replaces Walter Kwok, who has been re-designated as a non-executive director.

Kwong Siu-hing, aged 79, is the wife of Kwok Tak-seng, the late chairman of the company and the mother of Walter Kwok, Thomas Kwok and Raymond Kwok.

Kwong Siu-hing has over 40 years of experience in the real estate business, the company said in a statement.

She currently effectively controls about 41.53 pct of the company's issued share capital.

Sun Hung Kai Properties did not give any reasons for Walter's ouster from the chairman's post in its brief statement issued after the board meeting.
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Re: Sun Hung Kai Properties 0016

Postby kennynah » Tue May 27, 2008 5:51 pm

congratulations !!! i saw the positive end to this counter today...


winston wrote:The board of directors will meet at 11am to decide on the fate of the elder brother.

All indications points to the brother being ousted and the mother would take over things.

The share price has dropped about 10% over the week.

I just bought a call. Wish me luck !
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Re: Sun Hung Kai Properties 0016

Postby LenaHuat » Tue May 27, 2008 8:06 pm

This saga is playing out like the 1980's Cantonese TVBS drama series.
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Re: Sun Hung Kai Properties 0016

Postby winston » Wed May 28, 2008 1:52 pm

Hong Kong developer ousts chairman in family feud over company control
The Associated Press
Published: May 27, 2008

HONG KONG: One of Hong Kong's major developers ousted its chairman and chief executive on Tuesday following a legal feud between the three billionaire brothers who control the company.

Sun Hung Kai Properties' board announced in a statement that Walter Kwok will cease being chairman and CEO and serve instead as a non-executive director, effectively immediately.

Kwok's two younger brothers — Raymond and Thomas, both company vice chairmen — were appointed co-chief executives, the company said in a statement. His mother, Kwong Siu-hing, 79, was named the developer's new chairwoman, the company said.

The action came a day after Kwok lost an appeal in Hong Kong court for an injunction to stop the company's board from meeting and pressing ahead with his ouster.

Walter Kwok had sought the injunction as part of a lawsuit accusing his two younger brothers of plotting to remove him by portraying him as mentally ill.

Kwok issued a statement Tuesday denying all allegations made against him by "certain directors" on the board and said he would use his position to monitor the company in the interest of shareholders.

The day before, he had said he was willing to negotiate with his brothers.

"The three of us are brothers," he said. "Why should we torture each other?"

Sun Hung Kai said the board acted in the best interests of shareholders and that "business is being conducted as usual."

"The company will continue to follow the principle of collective leadership and will further strengthen its corporate governance, while striving for the best returns to shareholders," the developer said in a statement.

Kwok, 57, says he raised concerns about the terms of lease of a major new skyscraper in Hong Kong, the International Commerce Center, and questioned the company's apparent favoring of certain contractors and the high price of a piece of land the company bought.

He also says he proposed hiring an accounting firm to review management practices in the company — something his younger brothers opposed.

In response, Kwok claims his brothers arranged for a Stanford University doctor to visit Hong Kong and fed him misinformation that led the physician to diagnose Kwok with bipolar affective disorder. Kwok's brothers then pushed for his dismissal, he said.

Kwok's brothers have opposed the lawsuit and rejected his concerns about corporate governance.

Raymond Kwok said Friday the company maintained "a strict decision-making system" and that major investments and decisions were "discussed by management and decided by a majority consensus."
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Re: Sun Hung Kai Properties 0016

Postby winston » Wed May 28, 2008 2:17 pm

Target Price:-

1) UOB 150 May 20 from 144 Mar 7 from 165 Jan 21 from 95.5 Mar 8 from 92.5 Dec 20
2) GS 143 Feb 29 from 178 Jan 15 from 175 Nov 6 from 138 Sep 19 from 110 Jun 25
3) Merrill 179 May 6 from 173 Nov 5 from 139 Sep 14
4) BNP 175 Nov 1 from 129
5) CS 103 Sep 14
6) UBS 145.8 Sep 14
7) MS 147 Mar 7 from 175 Nov 12
8) DB 178 Dec 12
9) Lehman 205 Mar 7
10) CLSA 118 Mar 9
11) Citi 122 May 19

========================

Pros:-

1) RNAV 158 as per Goldman Sachs; Trading at 20% discount now
2) Both younger brothers were appointed co-CEOs and will continue to run the company. Succession is in place.


Cons:-
1) Walter will continue be a pain; Management focus will be affected
2) Market is weak so some investors will bail out first, especially, those bought around the range low of HK$108.


Where do we go from here ?

1) If Walter continue to bring up issues of Corporate Governance, the share price would be affected.

2) However, the share price should be supported by the range low of HK$108 and the big discount to RNAV of 20%

3) Upside of 10% to around HK$140

4) If the mother passes away, one of the younger brother would then takeover as Chairman

5) Maybe they may carve up the empire and Walter will stop bothering them
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Re: Sun Hung Kai Properties 0016

Postby winston » Thu May 29, 2008 2:18 pm

Sources close to ousted Sun Hung Kai Properties (0016.HK: Quote, Profile, Research) chairman Walter Kwok said he sees nothing to substantiate the family accusations against him about investment mistakes that involved items worth HK$20 billion.
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