Sun Hung Kai Properties 0016

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Sun Hung Kai Properties (16 HK)
1HFY23: Hong Kong DP Results Below Expectations; Being More Prudent In 2024

FY23 underlying profit declined by 16.9%% yoy, dragged by the lower-than-expected
contribution from Hong Kong property development (DP).

Annual DPS of HK$4.95/share (flat yoy).

Contracted sales are satisfactory thanks to balanced product mix.

Excluding exchange rate impact, retail portfolio in Hong Kong and mainland is resilient.

SHKP targets HK$33b sales in Hong Kong and below 20% gearing.

DPS payout ratio will be normalised to 40-50%.

Maintain BUY. Target price: HK$112.64.

Source: UOBKH

https://research.uobkayhian.com/content ... aebe119e11

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Result Analysis: Earnings missed on weaker development profit

FY23 underlying earnings fell 17% to HK$23.9bn, c.10% below our estimate due to weaker-than-expected development profit

Aims to pay out 40-50% of underlying earnings as dividend in the future (FY23: 60%)

Expanding rental footprint to augment long term earnings growth

Trough valuation to cushion downside risk, maintain BUY with TP of HK$111.8

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=16116

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Brokers│Views

Haitong International│High dividend yield with improved operating revenue

UOB Kay Hian│Hong Kong development property results missed; more cautious on 2024 outlook

Goldman Sachs│2HFY2023 results missed, due to weaker-than-expected booking of development projects; DPS flattish

DBS│Growth achieved through expanding rental mix

HSBC Global Research│Earnings expected to bottom; property rentals & sales businesses should improve

Morgan Stanley│Annual EPS missed; 2024 DPS viewed as greater concern

UBS│Annual results missed with increased uncertainty on DPS

Citigroup│Longer winter expected

BofA Securities│Annual results missed; potential DPS reduction for current FY may disappoint market

Jefferies│2HFY2023 earnings missed; downside risks for future DPS; rating downgraded to Hold

CLSA│Hinting at DPS reduction

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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SHKP sinks to 14-year low

Sun Hung Kai Properties (0016) fell as much as 12.7 percent after its disappointing earnings before ending at a 14-year low yesterday, dragging down shares of other local developers.

One of the largest real-estate companies in Hong Kong, SHKP disclosed last Thursday that its underlying profit excluding property revaluation gains slumped 17 percent for the year ended June.

It also warned that it will cut the full-year dividend payout ratio to underlying profit to 40 percent from the current 60 percent.

Citi slashed its target price for SHKP by 20 percent to HK$103.3 apiece, with more conservative forecasts on its property sales and gross profit margins.

After Hong Kong's stock market resumed trading yesterday following Friday's closure due to torrential rain the night before, SHKP once dived to HK$77.1 before ending 9.5 percent lower at HK$79.95 and back to levels last seen in 2009. It was also the worst-performing blue chip.

Meanwhile, the Hongkong and Shanghai Banking Corporation's interest rate cap increase for mortgage plans related to the Hong Kong interbank offered rate further fueled the rout.

Source: The Standard

https://www.thestandard.com.hk/section- ... 4-year-low

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Kwoks buy back $1.2b shares

Sun Hung Kai Properties's (0016) major shareholder, the Kwok family, increased their stake in the company by purchasing 1.61 million shares for HK$1.28 billion on Monday, the day when the developer's share price witnessed a 9.5-percent fall.

The shares were bought at an average price of HK$79.6 per share.

The Kwok family boosted their holdings through a family trust in this case with former SHKP chairman Kwong Siu-hing's ownership stake increasing from 27.47 percent to 27.53 percent, approximately 797.66 million shares.

Kwong Siu-hing, also known as Kwok Kwong Siu-hing, is the matriarch of the Kwok family.

On the same day, SHKP's executive director Adam Kwok Kai-fai also increased his holdings by purchasing 600,000 shares at an average price of HK$79.5 per share through his fund Thriving Talent.

The share price of SHKP edged up by 0.38 percent to HK$80.25 yesterday.

Source: The Standard

https://www.thestandard.com.hk/section- ... .2b-shares

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SHK PPT (00016.HK) Sees Souble-digit Growth in Visitor Flow & Turnover, After Reopening of Borders in Early This Yr

SHK PPT (00016.HK) executive director Allen Fung, told Ming Pao that since the reopening of the Hong Kong-Mainland border earlier this year, its shopping malls have recorded double-digit growth in visitor flow and business turnover, and the average occupancy rate has been maintained at 95%, with double-digit rent increases for tenants who renewed their leases this year.

The government will officially launch the "Night Vibes Hong Kong" festivities tomorrow. Fung said the group supports the promotion of the night economy, and will extend the opening hours of several shopping malls to 10 pm, including malls in Kwun Tong, Tai Po, Yuen Long and Sheung Shui.

The hours will be further lengthened to 12 am on Fridays, Saturdays and Sundays.

Specifically, for the apm mall in Kwun Tong, the predicted turnover for the night-time book fair is now 5% higher than the original estimate.

Fung also suggested that consideration could be given to enhancing the tax exemption policy by raising the tax allowance for Mainlanders making purchases in Hong Kong from RMB5,000 to RMB100,000 per person.

At the same time, he suggested relaxing the application requirements for outdoor hawking and outdoor performances, making reference to the night economy practices of Singapore and China.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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SHKP Major Shareholder Kwok Kwong Siu Hing Further Adds 600K Shrs for $48.23M

Kwok Kwong Siu Hing, mother of SHK PPT (00016.HK)'s chairman and managing director Raymond Kwok, following her shareholding increase on Monday (11th), further acquired 600,000 SHK PPT shares on Tuesday (12th), at an average price of $80.3784 per share, involving $48.227 million.

The shareholding of Kwok Kwong Siu Hing in SHK PPT elevated from 27.53% to 27.55% as a result of the share purchase.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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Sun Hung Kai Properties (16 HK) - All eyes on interest rate trajectory

Sun Hung Kai Properties Limited (SHKP) is one of Hong Kong’s largest property companies.

Its large property investment portfolio and non-property businesses (including telecommunications, transport infrastructure and logistics) will allow the group to generate robust recurring income streams notwithstanding headwinds from the macroeconomic landscape.

Although SHKP will not be unscathed from a potential “higher for longer” interest rate environment, we believe its healthy financial position will allow it to better weather the uncertainties.

Dividend yield is expected to remain decent, although we are forecasting SHKP’s dividend per share (DPS) to decline in FY24 as compared to FY23 due to a lower payout ratio. BUY.

Source: OCBC

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<Research>HSBC Research Adds SHK PPT (00016.HK) TP to $95.3, Sees Better Earnings/ Div. Visibility for FY2025

After a 9% YoY decline in underlying profit for the full year (FY2024) ended June , SHK PPT (00016.HK) is expected to see a 19% YoY rebound in FY2025 underlying profit, and can be one of the few Hong Kong property developers that can record growth in FY2025 underlying profit despite a challenging market, HSBC Global Research issued a research report saying.

HSBC Global Research expected better earnings and dividend visibility for the current financial year.

Related News: M Stanley Expects HK Mortgage Rate to Fall to 3.25% in 2025, Property Prices to Rebound by 5%

HSBC Global Research kept rating at Buy on SHK PPT, and added its target price from $95 to $95.3, based on a 50% discount to its new net asset value per share forecast.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>JPM Elevates SHK PPT (00016.HK) TP to $70, Expects DPS to Bottom Out

Underlying profit of SHK PPT (00016.HK) for FY24 ending in June dropped 9% YoY to $22 billion, in line with JPMorgan's forecast but 4% below the market's expectation, the broker said in a research report.

The drop in profit was mainly driven by lower profits from property development and higher interest expenses, partly offset by growth in rental income.

DPS for the full financial year fell 24%, also in line with the broker's projections.

JPM expected SHKP's EPS and dividend to bottom out and return to growth in FY25 and FY26, with the group's basic EPS expected to grow by 9% and 5% respectively.

The broker also pointed out that SHKP's share price, which has long been positioned as a representative of the Hong Kong property market, is expected to fluctuate within the range unless there is a significant recovery in Hong Kong property prices.

Related News: HSBC Research Adds SHK PPT (00016.HK) TP to $95.3, Sees Better Earnings/ Div. Visibility for FY2025

The broker maintained a Neutral rating on SHKP and raised its target price from $68 to $70.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN