Sun Hung Kai Properties Earnings: Weak Property Sales Hit Results; Near-Term Margin Pressure Remains

Sun Hung Kai Properties', or SHKP's, fiscal 2024 (ending June) performances were below our expectations as net profit fell 9% year on year to HKD 19.0 billion. This was driven by a 30.5% year-on-year decline in earnings from its property sales in Hong Kong and mainland China, and fair value losses on its investment properties under development and held by its joint ventures and associates. These were slightly offset by better performances in its property rental segment, hotel operations, and other businesses. The group declared a final dividend of HKD 2.80 per share, leading to a full-year dividend of HKD 3.75, 24.2% lower than last fiscal year.