In This Article:
-
Revenue: $3.8 billion, down 4% year-on-year.
-
Interest Income: $3.6 billion, main contributor to revenue.
-
Pre-tax Contribution: $861 million, rebounded from $77 million last year.
-
Attributable Profit: $378 million, turnaround from a loss in 2023.
-
Book Value Per Share: $10.8, flat year-on-year.
-
Net Gearing Ratio: Decreased by 740 basis points to 31.2%.
-
Interest Coverage Ratio: Increased 80% to 1.9 times.
-
Return on Equity (ROE): Improved to 1.8%.
-
Dividend Per Share: $0.26, consistent with prior year's payout.
-
Total Assets: HKD37 billion at the end of 2024.
-
Cash Position: HKD5 billion.
-
Total Loans: HKD13 billion.
-
Net Debt: Decreased to HKD6.6 billion from HKD8.2 billion in 2023.
-
Investment Management Assets: HKD14.9 billion.
-
Consumer Finance Revenue: HKD3.1 billion, down 3% year-over-year.
-
Operating Expenses: Decreased by 9% to HKD983 million.
-
Cost to Income Ratio: Improved by 210 basis points to 31%.
-
Net Impairment Losses: HKD794 million, up 17% year-over-year.
-
Mortgage Business Revenue: HKD229 million, down 20%.
-
Operating Costs: Decreased 23% to HKD45 million year-on-year.
-
Finance Cost: Decreased 35% year-over-year to HKD69 million.
Release Date: March 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Sun Hung Kai & Co Ltd (HKSE:00086) reported a turnaround in profitability with an attributable profit of $378 million in 2024, recovering from a loss in 2023.
-
The investment management segment delivered positive returns amid elevated interest rates and market volatility, contributing significantly to pre-tax profit.
-
The company maintained ample liquidity and low gearing, with a strong cash position of HKD5 billion at the end of 2024.
-
The fund management business saw strong AUM growth, driven by net capital inflow and solid fund performance, contributing to pre-tax profit.
-
Sun Hung Kai & Co Ltd (HKSE:00086) continued to return value to shareholders, maintaining a consistent dividend payout and conducting share buybacks.
Negative Points
-
Revenue for 2024 decreased by 4% year-on-year to $3.8 billion, primarily due to a smaller loan book and tightened underwriting criteria.
-
The consumer finance segment faced challenges with a strategic transition to secured loans in China, resulting in a decrease in average loan yield.
-
The mortgage business experienced a 17% year-over-year decrease in gross loan balance, reflecting cautious loan underwriting amid market adjustments.
-
Net impairment losses in the consumer finance segment increased by 17% year-over-year, reflecting the negative impact of weakening economic conditions.
-
The real estate portfolio faced weakness in Hong Kong, although this was offset by strong performance in European hospitality investments.