Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — FY2005/06 Earnings Presentation
18 slides from Sun Hung Kai Properties's earnings presentation, Sep 14, 2006
Slide 1: Sun Hung Kai Properties Final Results FY2005/06
SUN HUNG KAI PROPERTIES FINAL RESULTS FY2005/06 14 September 2006
Slide 2: Agenda
Agenda y Results Highlights 3-5 y Business Review 6-10 y Outlook & Growth Prospects 11-17 Sun Hung Kai Properties – FY2005/06 Final Results 2
Slide 3: Results Highlights
Results Highlights Manhattan Hill West Kowloon
Slide 4: Results Highlights – Key Numbers
Results Highlights – Key Numbers Year ended June 30 2006 2005 Change (Restated) Net profit - Reported (HK$ m) 19,850 17,900 +10.9% - Underlying 10,468 10,262 +2.0% Earnings per share - Reported (HK$) 8.23 7.45 +10.5% - Underlying 4.34 4.27 +1.6% Dividend per share - Interim (HK$) 0.70 0.70 - - Final
Slide 5: Results Highlights – Earnings Breakdown
Results Highlights – Earnings Breakdown Year ended 30 June 2006 2005 change HK$ million (Restated) Property sales 7,049 4,462 58.0% Net rental income 4,615 4,067 13.5% Hotel operation 241 214 12.6% Telecommunications 118 322 63.4% Other businesses 1,370 1,172 16.9% Other revenue 535 618 13.4% Unallo
Slide 6: Business Review
Business Review The Arch at Kowloon Station
Slide 7: Business Review – Property Development
Business Review – Property Development y Turnover rose 6% to HK$10,890 million y Margins expansion y Completion for FY2006 Attributable Project % Interest Usage GFA (sq.ft.) The Arch JV Res 1,076,000 Park Island Ph 5 JV Res 800,000 Noble Hill 100 Res 532,000 Severn 8 100 Res 59,000 Novotel Citygate
Slide 8: Business Review – Property Development: Land Bank
Business Review – Property Development Land Bank y Addition during FY2006 Attributable Location % Interest Usage GFA (sq.ft.) Ngau Chi Wan 100 Res 775,000 38 Ming Yuen W. Street 100 Res 94,000 Hung Shui Kiu, Yuen Long 74 Res 77,000 Ngau Tam Mei, Yuen Long 100 Res 36,000 Kwai Chung Town Lot 215 100 O
Slide 9: Business Review – Property Investment
Business Review – Property Investment y Completed investment properties Gross Rental Breakdown of 22.4m sq.ft. (HK$6,466m) y High occupancy of 95% − Business expansion & new tenants Shopping − Tight supply Centre 58% y Net rental income +13.5% Office − Higher rents 24% Car − Retail sales growth Park
Slide 10: Business Review - China
Business Review - China y Additions to land bank y Key new projects include − Luxury residential/commercial in Puxi (Huaihai Zhong Road) − JV residential/commercial in Hangzhou (40%) − JV residential/commercial in Wuxi (40%) Sun Hung Kai Properties – FY2005/06 Final Results 10
Slide 11: Outlook & Growth Prospects
Outlook & Growth Prospects ICC, Ritz Carlton Hotel and W Hotel at Kowloon Station
Slide 12: Outlook - Hong Kong Property Market
Outlook - Hong Kong Property Market Residential y Robust demand fundamentals − Comfortable affordability − Improving job market and continued pay rises − Rising marriages y Declining supply of new units y Peaking out of interest rate y Positive and consistent government housing policies y Market lik
Slide 13: Outlook - Hong Kong Property Market: Leasing
Outlook - Hong Kong Property Market Leasing y Grade A office − Activities and rate of rent increase moderated − More activities in decentralised areas − Low supply in next 12-18 months − Modest rent increase to continue y Commercials − Rising tourist arrival − Growing domestic consumption − High occ
Slide 14: Outlook – China Property Market
Outlook – China Property Market y Solid economic backdrop underpin demand − Robust economic growth − Urbanisation − Growing affluence y Positive long term outlook − Lack of quality space − Investment demand Sun Hung Kai Properties – FY2005/06 Final Results 14
Slide 15: Growth Prospects - SHKP Strategy
Growth Prospects - SHKP Strategy y Core business established in Hong Kong property market − Develop and maintain a well-diversified property portfolio − Actively pursue land acquisition opportunities − Reinforce strong brand to enhance property value y Focused expansion into property business in Mai
Slide 16: Growth Prospects - SHKP
Growth Prospects - SHKP y Property Development − Sizeable and low cost residential land bank (GFA 11.5m sq.ft.) − Actively pursue agricultural land conversion (>23m sq.ft. site area) − Steady completion volume (2.6m sq.ft. in FY2007) over next 3 years − Continue focus on margin through branding and
Slide 17: Growth Prospects - SHKP: China
Growth Prospects - SHKP y China − Capitalise on expertise and experience Hong Kong − Focus on major cities and quality − Balance between development for sale and for investment − 19.8m sq.ft. of land bank and expanding − Committed about 10% of total assets and growing − Actively studying opportuniti
Slide 18: Thank you
SUN HUNG KAI PROPERTIES Thank you www.shkp.com
Sun Hung Kai Properties — FY2005/06 Earnings Presentation on 6ix