Sun Hung Kai Properties’ stock (0016.HK) was publicly listed in 1972 and it trades on the Hong Kong Stock Exchange under the ticker 0016.
Sun Hung Kai Properties Chart Today
Sun Hung Kai Properties Limited (SHKP) is a real estate developer based in Hong Kong. Founded in 1963, the company specialises in the development and management of residential, commercial, and retail properties.
SHKP is renowned for landmark projects, solidifying its position as one of the largest property developers in Asia.
It is now one of the largest property companies in Hong Kong and owns a vast network of shopping malls and offices, while it also has a hotel portfolio and a sizeable land bank.
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Housing Market Industry Comparison
Sun Hung Kai Properties and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $1.05 | $10.66 billion |
| 2021 | $1.19 | $10.98 billion |
| 2022 | $1.12 | .$9.90 billion |
| 2023 | – | $9.08 billion |
Sun Hung Kai Properties Price & Dividend Yield
SHKP’s share price is heavily influenced by property market trends and economic conditions in Hong Kong. Since around 2010, the stock has been mostly in a broad ranging pattern, although more recently, it has declined, currently trading around the HKD 85.10 mark (as of October 25, 2024), softening due to weaker property demand.
The company pays consistent dividends, with a healthy yield above 5%.
Dividend Yield: 5.06%
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Sun Hung Kai Properties Share Price Forecast
Analysts are optimistic about SHKP. Out of 16 analysts, 13 have a Buy rating on the stock, while the remaining three see it as a Hold.
A View From The Bulls: In October, UBS analysts upgraded Sun Hung Kai to Buy from Neutral, raising the price target for the stock to HKD 102 from HKD 80. The bank lifted its rating for the company based on its positive outlook for Hong Kong’s residential property market. UBS highlighted that SHKP, as of June this year, held more than 8,000 units of saleable resources, which it expects to be available in the following nine months, and that 14% of those resources are located in regions with a significant inflow of new housing supply. Furthermore, UBS believes the company’s sale of units in YOHO Hub and Cullinan Sky will be significant contributors to SHKP’s stock movement.
A View From The Bears: When assessing the company’s debt, the company “has a somewhat strained balance sheet.” Investors and market watchers believe shareholders should keep a watch on Sun Hung Kai Properties’ use of debt and that if its lenders demand the company shores up its balance sheet, “shareholders would likely face severe dilution.”
Separately, investors looking to assess the stock should be aware of any potential headwinds that could impact the property market in the region, as well as the economic climate, as downturns will pressure the stock.
Average Analyst Consensus 12-Month Price Target: HKD 94.20
Our View: Sun Hung Kai Properties (SHKP) offers stable income through consistent dividend payments and exposure to Hong Kong’s premium real estate market, making it a preferred choice for income-oriented investors. The company has maintained a solid dividend track record despite economic cycles. SHKP’s diverse portfolio of residential, commercial, and retail properties provides steady cash flows from long-term leases.
However, SHKP is navigating various headwinds. While declining rates and Chinese stimulus provide some hope, the region’s property, tourism, and retail sectors are still under pressure, with the Financial Times recently stating that “any benefits from lower US interest rates and a Chinese stimulus package” will take time to filter down.
The volatile landscape adds complexity to SHKP’s outlook.
Who Should Buy SHKP Shares?
SHKP may be a stock to look at for income-focused investors seeking consistent dividends and exposure to Hong Kong’s high-end real estate market.
SHKP’s emphasis on urban regeneration and sustainable development further reinforces its appeal to long-term investors.
The company is also suited for those looking to diversify portfolios geographically by gaining exposure to the Asian property market, which offers potential upside over time. However, economic headwinds—including shifts in property demand—may affect short-term performance, requiring patience from investors.
While SHKP offers a potential regular income, it is not necessarily the best fit for growth-oriented investors seeking quick gains. Investors focused on short-term market trends or high-growth sectors may prefer alternatives.
