SUN HUNG KAI & CO. LIMITED
Sun Hung Kai & Co. Announces 2019 Annual Results, Basic EPS Increased by 86%
[For immediate release]
30 March 2020, Hong Kong
Sun Hung Kai & Co. Announces 2019 Annual Results, Basic EPS Increased by 86%
Sun Hung Kai & Co. Limited (Stock Code: 86.HK) (“SHK & Co.” or the “Company”, together with its subsidiaries, the “Group”) announced its final results for the year ended 31 December 2019: profit attributable to owners of the Company for the year was HK$2,085.2 million (2018: HK$1,183.8 million),an increase of 76% year on year.
“At this time of year, we take a moment to look back and appreciate what we achieved in a meaningful year for SHK & Co. as we celebrated the 50th anniversary of our establishment in 1969. Our diverse yet complimentary business portfolio made 2019 one of our strongest years and those results show the strength of the Group’s dual-engine growth model.” said Mr. Lee Seng Huang, the Group Executive Chairman. “We feel 2019’s performance further validates the strategic transformation we embarked on almost five years ago.“
The Group saw strong performance from several business segments, driven by organic growth in the lending businesses as well as realized gains and a marked improvement in Investment Management’s portfolio value. These gains, combined with improved capital efficiency through share repurchases last year, helped basic earnings per share increase by 86% to HK104.4 cents. The book value per share for the year increased by 7% to HK$10.2 and the Board has declared a second interim dividend of HK14 cents per share, adding the total dividend per share for 2019 to HK26 cents.
“As we all know, 2020 started with a global pandemic unlike anything we have seen before. The effects are being felt here and around the world, causing unprecedented economic stress and volatility.” Mr. Lee added. “In the midst of these ongoing challenges and uncertainties, I am proud of how quickly our team at SHK & Co. continues to adapt, and to keep both safe and productive. I believe that the strength of our team, financial position and longer-term investment horizon puts us in a position to weather this storm.” Mr. Lee concluded.
The Group’s Financing businesses remain the largest in terms of assets and provide steady cash flow and organic growth, while Investment Management focuses on higher return strategies across a broader range of sectors and geographies. Looking forward, the Company plans to continue to expand the Investment Management business by launching a Fund Management platform which will manage external capital and bring additional assets and revenue. As the Company continues to grow its offerings, the Investment Management business is expected to be a driver of future growth.
2019 Final Results Summary
Outlook
The outbreak of the coronavirus and its rapid advance around the globe has disrupted businesses and markets in a way that no one has ever seen. The effects of travel bans, national lockdowns, and investor panic has created unprecedented market volatility. We are closely monitoring the situation and the potential impact on all the Group’s businesses and investments and will continue to adjust our strategy to guide the Group through this turbulent time. We believe our liquidity and longer-term investment horizon puts us in a position to be patient and prudent as we navigate these turbulent markets.
Over the course of the year, we built out systems to allow our employees to more easily work remotely, which helped us remain productive during the coronavirus outbreak and will continue to add value once business recommences.
The Group will continue its dual-engine model and aims to deliver strong performance over the long term with sound governance and risk controls through the various market conditions. We will also maintain diversified funding sources and ample liquidity to provide staying power and enable our business expansion.
Appendix: Business Segments Highlights As part of its ongoing efforts to enhance public disclosure and in order to better explain the business nature, the Company reclassified and renamed certain assets across the business portfolio.
Financing Business
Consumer Finance
Specialty Finance
Mortgage Loans
Investing Business
Investment Management
Strategic Investments
About Sun Hung Kai & Co. Limited
Sun Hung Kai & Co. Limited (the “Company”, together with its subsidiaries, the “Group”) is a financing and investing firm headquartered in Hong Kong. Since its establishment in 1969, the Group has owned and operated market-leading businesses in financial services. Building on its rich heritage, experience and network, the Group aims to generate long-term capital growth for its shareholders through a diverse, yet complementary, financing and investment model. It is the major shareholder of leading consumer finance firm United Asia Finance Limited, and a substantial shareholder of Everbright Sun Hung Kai. Overall, the Group holds over HK$42 billion* in total assets. For more information, please view our website at www.shkco.com. *As at 31 December 2019
For enquiries, please contact: Joseph Fuqua, Director of Investor Relations +852 3748 2888 Document: https://eqs-cockpit.com/c/fncls.ssp?u=ECWSDWHRSI Document title: Sun Hung Kai & Co. Announces 2019 Annual Results, Basic EPS Increased by 86%
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