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Sun Hung Kai Properties
(0016)
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Rating:73Outperform
Price Target:
HK$121.00
â–¼(-2.02% Downside)
Action:Upgraded
Date:10/12/26
The score is driven primarily by strong financial durability (low leverage and solid free cash flow) and a supportive, largely positive earnings outlook with improving balance sheet metrics and a solid sales/backlog pipeline. Valuation is reasonable with a mid-teens P/E and a ~3.5% yield. These strengths are tempered by weaker technical positioning (below key moving averages, negative MACD) and management’s more cautious near-term margin and FY2027 sales target expectations.
Positive Factors
Conservative balance sheet and cash generation
Low leverage and strong conversion of earnings into free cash flow provide financial resilience through property cycles. This supports continued investment, debt servicing and dividends while preserving flexibility to pursue attractive development or investment opportunities.
Negative Factors
Meaningful development margin compression
Lower margins show that profitability is exposed to competitive land costs and current property-market conditions. Even with solid sales, reduced project economics can limit profit growth and make future earnings more dependent on project mix and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and cash generation
Low leverage and strong conversion of earnings into free cash flow provide financial resilience through property cycles. This supports continued investment, debt servicing and dividends while preserving flexibility to pursue attractive development or investment opportunities.
Read all positive factors
Sun Hung Kai Properties (0016) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$315.57B
Dividend Yield3.47%
Average Volume (3M)4.47M
Price to Earnings (P/E)14.7
Beta (1Y)0.80
Revenue Growth17.33%
EPS Growth11.15%
CountryHK
Employees39,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)7.40
Shares Outstanding2,897,780,300
10 Day Avg. Volume3,596,547
30 Day Avg. Volume4,468,362
Financial Highlights & Ratios
PEG Ratio1.37
Price to Book (P/B)0.51
Price to Sales (P/S)3.44
P/FCF Ratio7.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$138.92Price Target Upside12.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.33
Revenue Forecast (FY)HK$86.75B
Sun Hung Kai Properties Business Overview & Revenue Model
Company Description
Sun Hung Kai Properties Limited operates as a prominent real estate conglomerate, primarily engaged in the development and investment of properties for sale and lease. Its operational reach spans Hong Kong, mainland China, Singapore, and other int...
How the Company Makes Money
Sun Hung Kai Properties makes money primarily through a combination of (1) property development for sale and (2) recurring income from long-term ownership and operation of investment properties, supplemented by property-related services and other ...
Sun Hung Kai Properties Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. The group reported higher underlying and reported profit, a stronger balance sheet, a higher dividend, strong Hong Kong contracted sales, improving Hong Kong development margins, resilient retail and office occupancy, hotel profit growth, and substantial new project and leasing pipelines. The main cautions were the decline in other businesses profit, modest Hong Kong rental growth, uneven office-market recovery, a lower FY2027 Hong Kong sales target, competitive land costs limiting near-term margins, Mainland office rental pressure, regulatory-related cash collection delays, and competition and oversupply in Mainland retail. Highlights significantly outweighed lowlights.Positive Updates
Underlying and Reported Profit Growth
For the year ended June 2026, underlying profit was $22.9 billion, up 4.6% year-on-year, mainly driven by higher profits from Hong Kong property development and lower finance costs. Reported profit was $21.4 billion, up 11.1% year-on-year, after including realized value gains from the sale of investment properties and net revaluation profit.
Negative Updates
Decline in Other Businesses Profit
Profit from other businesses was approximately $4.6 billion, down 6.5% year-on-year.
Read all updates
Q4-2026 Updates
Positive
Negative
Underlying and Reported Profit Growth
For the year ended June 2026, underlying profit was $22.9 billion, up 4.6% year-on-year, mainly driven by higher profits from Hong Kong property development and lower finance costs. Reported profit was $21.4 billion, up 11.1% year-on-year, after including realized value gains from the sale of investment properties and net revaluation profit.
Read all positive updates
Company Guidance
Management set Hong Kong property-development contracted sales target at $33 billion for this year, versus total sales of $38 billion last financial year, and said a 30% plus margin may not be realistic, while it can achieve a good and reasonable margin in the long run; for Mainland development projects overall, it expects post-tax a healthy double-digit mid-teens margin. About $21 billion of Hong Kong contracted sales and $0.8 billion of Mainland contracted sales are expected to be recognized in FY 2027. Over the next 10 months, the group will launch Hong Kong projects including SIERRA SEA Phase 2C, Tung Shing Lei Phase 1A and Phase 1B, Tai Wai, Kwu Tung phase 1 and City One, while the Mainland will launch new residential projects across different cities. The Hong Kong residential market is expected to perform solidly for the rest of the year and the next. IGC will achieve full occupancy through a phased approach, with FY ’27 marking the initial revenue base and a steady and meaningful ramp-up in subsequent years; AST is on track for completion in 2027, with JPMorgan committed to 250,000 square feet, representing 37% of total office GFA. ITC Mall’s meaningful profit contribution is expected in the later part of 2027. The group’s dividend policy remains 40% to 50% of earnings per share, with no plan at all to issue new shares or warrants.Sun Hung Kai Properties Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 94.59B | 79.72B | 71.51B | 71.19B | 77.75B |
| Gross Profit | 27.32B | 34.19B | 32.21B | 34.95B | 40.53B |
| EBITDA | 35.38B | 30.98B | 30.52B | 32.16B | 38.67B |
| Net Income | 21.43B | 19.28B | 19.05B | 23.91B | 25.56B |
Balance Sheet | |||||
| Total Assets | 817.75B | 816.89B | 818.09B | 805.99B | 807.57B |
| Cash, Cash Equivalents and Short-Term Investments | 30.95B | 17.74B | 16.97B | 15.89B | 21.02B |
| Total Debt | 97.67B | 110.22B | 129.65B | 128.05B | 126.77B |
| Total Liabilities | 179.03B | 194.52B | 207.02B | 199.19B | 200.82B |
| Stockholders Equity | 633.94B | 617.85B | 606.72B | 602.05B | 601.95B |
Cash Flow | |||||
| Free Cash Flow | 42.55B | 35.94B | 19.89B | 21.65B | 11.16B |
| Operating Cash Flow | 44.21B | 38.17B | 24.52B | 26.14B | 15.19B |
| Investing Cash Flow | -2.37B | -7.53B | -9.61B | -16.06B | -9.52B |
| Financing Cash Flow | -28.90B | -29.92B | -13.11B | -13.66B | -8.84B |
Sun Hung Kai Properties Technical Analysis
Neutral
123.50
Price Trends
111.75
Negative
114.76
Negative
122.78
Negative
Market Momentum
-0.86
Negative
51.71
Neutral
74.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0016, the sentiment is Neutral. The current price of 123.5 is above the 20-day moving average (MA) of 106.91, above the 50-day MA of 111.75, and above the 200-day MA of 122.78, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 74.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0016.
Sun Hung Kai Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$161.55B | 12.21 | 3.39% | 3.90% | 47.69% | 16.48% | |
73 Outperform | HK$315.57B | 14.72 | 3.41% | 3.47% | 17.33% | 11.15% | |
67 Neutral | HK$97.87B | 20.84 | 2.67% | 5.68% | 15.20% | 7.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | HK$217.21B | 7.88 | 8.04% | 4.40% | -11.74% | -11.38% | |
52 Neutral | HK$60.42B | -137.01 | -0.30% | 1.98% | -0.74% | -741.18% | |
51 Neutral | HK$138.89B | 10.66 | 2.82% | 3.78% | 4.14% | -16.76% |
* Real Estate Sector Average
HK:0016
Sun Hung Kai Properties
108.90
15.78
16.94%
HK:0688
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12.69
0.05
0.44%
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46.16
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HK:0004
Wharf (Holdings)
19.77
-0.32
-1.58%
Sun Hung Kai Properties Corporate Events
Sun Hung Kai Properties sets 2026 AGM to seek mandates on dividend, share buy-back and issuance
Oct 8, 2026
Sun Hung Kai Properties has convened its fifty-fourth annual general meeting for 5 November 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 30 June 2026, decide on a final dividend...
Sun Hung Kai Properties Lifts Profit and Dividend as Hong Kong Land Bank Expands
Sep 10, 2026
Sun Hung Kai Properties reported underlying profit attributable to shareholders of HK$22,850 million for the year ended 30 June 2026, up from HK$21,855 million, with underlying earnings per share rising to HK$7.89. Reported profit increased to HK$...
Sun Hung Kai Properties Sets September Board Meeting on Annual Results and Dividend
Aug 4, 2026
Sun Hung Kai Properties has scheduled a board meeting for 10 September 2026 to approve the annual results for the financial year ended 30 June 2026 and to consider recommending a final dividend.The upcoming meeting signals a key point in the compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.