Sun Hung Kai Properties Ltd.

Overview Key strengths Key risks Leading market positions in residential development and commercial leasing businesses in Hong Kong. Limited geographic diversity with more than 70% of profit coming from Hong Kong. Stable recurring income and cash flow from a sizable and diversified leasing portfolio that accounts for close to half of earnings. Likely decline in Hong Kong?s residential property prices in 2023 amid softening economic conditions and higher interest rates. Consistently strong liquidity and good rental income to interest coverage. We believe the company can achieve contracted sales of HK$35 billion in Hong Kong in fiscal 2023, up from about HK$30 billion in fiscal 2022. Despite the total residential property transaction volume in Hong Kong dropping by 38% in the

...Sun Hung Kai Properties Ltd. (SHKP) is likely to meet its contracted sales target in fiscal 2023 (year ending June 30, 2023) despite the market downturn. We believe the company can achieve contracted sales of HK$35 billion in Hong Kong in fiscal 2023, up from about HK$30 billion in fiscal 2022. Despite the total residential property transaction volume in Hong Kong dropping by 38% in the first 10 months of 2022, SHKP had more than 90% sell-through in one of its major mass-market projects, NOVO Land in Tuen Mun, in the third quarter of 2022. The company's brand recognition, pricing strategies, and solid end-user demand in the mass-market contributed to the sales performance....

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