Bulletin: Sun Hung Kai's Financial Discipline Will Mitigate Margin Pressure, Aid Debt Reduction

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 3, 2025--Sun Hung Kai Properties Ltd. (SHKP) will likely continue to reduce debt by prudently spending on land and controlling capital expenditure. Such financial discipline will help the company tide over further margin declines amid continued soft home prices in Hong Kong. We anticipate SHKP's full-year contracted sales could top our forecast for fiscal 2025 (ending June 30, 2025). The company has six residential projects totaling 2.2 million square feet (sq ft) for launch in Hong Kong over the next 10 months. It posted contracted sales of about HK$25.5 billion in the first half of fiscal 2025. This was up 98% year on year and made

...March 3, 2025 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 3, 2025--Sun Hung Kai Properties Ltd. (SHKP) will likely continue to reduce debt by prudently spending on land and controlling capital expenditure. Such financial discipline will help the company tide over further margin declines amid continued soft home prices in Hong Kong. We anticipate SHKP's full-year contracted sales could top our forecast for fiscal 2025 (ending June 30, 2025). The company has six residential projects totaling 2.2 million square feet (sq ft) for launch in Hong Kong over the next 10 months. It posted contracted sales of about HK$25.5 billion in the first half of fiscal 2025. This was up 98% year on year and made up 85% of our full- year forecast for fiscal 2025. Potentially higher contracted sales could provide SHKP with further headroom for deleveraging. Gross debt and net debt for the Hong Kong-based property developer declined by 4% and 3% respectively in the first...

Bulletin