Sun Hung Kai Properties Limited (0016.HK) stock analysis

In our weekly check, Sun Hung Kai Properties Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 6.

About Sun Hung Kai Properties Limited

Sun Hung Kai Properties Limited is a Real Estate company (Real Estate - Development) based in Hong Kong, listed on HKSE as 0016.HK.

What our checks show for 0016.HK

Red flags

• Operating profit covers interest only 1.4 times: a weak year could make the payments hard.
• The net margin fell by 10.2 points over 5 years, to 22.7%: the company keeps less of each sale as profit.
• The gross margin fell by 23.3 points, to 28.9%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 2.3% a year.
• The stock has fallen as much as 71% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.2%.

Warning signs

• Earnings per share fell 3.6% a year over the last 3 years.
• Net profit fell 3.6% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.06x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 7.9 points from today's 22.7%.
• The company keeps 22.7% of its revenue as net profit.
• Free cash flow is 45% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $38.98 billion.
• Actively traded: about 5.1 million shares a day.

Similar companies

1109.HK · 1113.HK · 0688.HK · NRP.JO · EMAAR.AE · DLF.NS

Questions

What grade does Sun Hung Kai Properties Limited (0016.HK) have?

In our weekly check, Sun Hung Kai Properties Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0016.HK stock?

This week's biggest flags for Sun Hung Kai Properties Limited: Weak interest cover, Margins falling, Gross margin falling. In total 9 of 24 checks show a warning or a red flag.

What does Sun Hung Kai Properties Limited do?

Sun Hung Kai Properties Limited is a Real Estate company (Real Estate - Development) based in Hong Kong, listed on HKSE as 0016.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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