Sun Hung Kai & Co Ltd

Sun Hung Kai & Co Ltd (0086.HK) has been formally classified within the Banking activity and Financials economic sector, marking a significant structural update to its corporate profile. This reclassification, identified as a medium-severity change, establishes the company’s operational identity within the financial services landscape, providing a clearer framework for industry-specific analysis. Alongside this sectoral definition, the company’s risk assessment profile has been initialized with specific metrics. The dilution risk is now rated as low, indicating a stable capital structure with minimal threat of share value erosion from new issuances. This assessment offers investors a baseline understanding of the equity stability associated with the firm. Conversely, the liquidity risk remains categorized as unknown, highlighting an area where data transparency or availability is currently limited. While the dilution risk is clearly defined, the absence of a definitive liquidity rating suggests that further scrutiny may be required to fully assess the company’s short-term financial flexibility and cash flow management capabilities. The company currently maintains a lean analytical presence, with only two analysts covering the stock and no reported index memberships or top holders. This limited coverage, combined with the newly established sector and risk classifications, suggests that Sun Hung Kai & Co Ltd may be an under-followed entity where recent data updates provide critical foundational insights for potential investors.

Net income surged 321.8% year-over-year to HKD 1.59 billion in FY2026, signaling a strong profitability recovery.

Free cash flow jumped 499.1% to HKD 1.4 billion in FY2026, demonstrating significantly improved cash generation capabilities.

Long-term debt decreased to HKD 10.9 billion in FY2026, reflecting a consistent deleveraging trend over the five-year period.

Analysts assign a strong buy rating with a target price of HKD 6.4, implying 51.7% upside potential.

Revenue grew 11.2% year-over-year to HKD 4.14 billion in FY2026, indicating renewed top-line momentum after recent declines.

Revenue declined at a 4.8% CAGR over four years, highlighting a persistent long-term contraction in top-line growth.

Total assets shrank at a 5.6% CAGR over four years, suggesting a shrinking balance sheet and reduced scale.

The stock trades at HKD 4.22, which remains significantly below the single analyst target price of HKD 6.4.

Revenue HK$4.14B, +11,2% YoY; Operating income +140,1% YoY.

• ▍Revenue HK$4.14B, +11,2% YoY
• ▍Operating income +140,1% YoY
• ▍Net income +321,8% YoY
• ▍Free cash flow +499,1% YoY
• ▍Net margin 38.5%

Revenue HK$3.72B, +6,5% YoY; Operating income +325,5% YoY.

• ▍Revenue HK$3.72B, +6,5% YoY
• ▍Operating income +325,5% YoY
• ▍Net income +180,1% YoY
• ▍Free cash flow +141,1% YoY
• ▍Net margin 10.1%

Revenue HK$3.50B, −18,0% YoY; Operating income +121,9% YoY.

• ▍Revenue HK$3.50B, −18,0% YoY
• ▍Operating income +121,9% YoY
• ▍Net income +69,3% YoY
• ▍Free cash flow +65,6% YoY
• ▍Net margin -13.5%

Revenue HK$4.26B, −15,6% YoY; Operating income −122,5% YoY.

• ▍Revenue HK$4.26B, −15,6% YoY
• ▍Operating income −122,5% YoY
• ▍Net income −154,6% YoY
• ▍Free cash flow −157,9% YoY
• ▍Net margin -36.0%

Revenue HK$5.05B; Operating income HK$3.83B.

• ▍Revenue HK$5.05B
• ▍Operating income HK$3.83B
• ▍Net margin 55.7%