Dow Jones received a payment from EQS/DGAP to publish this press release.
EQS-News / 21/03/2018 / 20:37 UTC+8
*[For immediate release] *
21 March 2018, Hong Kong
*Sun Hung Kai & Co 2017 EPS increased 67%
Strong growth across all asset classes*
Sun Hung Kai & Co. Limited (SEHK: 86) (the "Company", together with its
subsidiaries, the "Group") delivered a solid set of results for the year
ended 31 December 2017. Profit attributable to owners of the Company for
year was HK$1,824.3 million (2016: HK$1,109.6 million). The book value per
share increased by 9.5% to HK$9.02.
The substantial growth was driven by the turnaround of the Group's Consumer
Finance business, as well as increased returns from the Principal
Investments business.
Group Executive Chairman Mr Lee Seng Huang said, "We are pleased with the
2017 results. Over two years ago, the Group embarked on a new strategy that
is starting to show encouraging returns. Our Principal Investments platform
has started to scale as the investment portfolio matures, and we continue to
see a healthy pipeline of transactions across our debt and equity
platforms."
*2017 Annual Results Summary
>*
For the year ending 31 Dec 2017 31 Dec 2016 Change
_(HK$ Million)_
*Pre-tax profit* 2,608.5 *1,501.6* *+74%*
*Profit attributable to owners of 1,824.3 *1,109.6* *+64%*
the Company*
*Book value per share (HK$)* 9.02 *8.24* *+9%*
*Earnings per share (HK cents)* 84.0 *50.3* *+67%*
*Second interim dividend (HK 14.0 *14.0*
cents)*
*Total dividend for the year (HK 26.0 *26.0*
cents)*
-Page 1 of 3 -
Business Segment Highlights:
*Consumer Finance*
*- Operated under United Asia Finance Limited ("UAF"). *
*- Contribution to profit before tax doubled to HK$1,445 million, driven by
the continued improvement in the Mainland China business and record profits
in Hong Kong.*
*- Net consumer finance loans increased by 20% to HK$9,164 million and total
bad and doubtful debts expenses declined 68%.*
*- The Mainland China business restructuring was successfully completed. UAF
operates on a leaner network of 85 branches, with improved efficiency. The
loan portfolio resumed its growth momentum and increased by 50% during 2017,
with a focus on smaller sized loans to salaried workers and SME's. *
*- The China UnionPay partnership has been encouraging, with the loan
origination volume surpassing RMB500 million since its launch in May 2017.
Last month, a similar partnership was formed with All In Pay and the Group
shall continue to explore other online partnership opportunities.*
*- UAF also launched our own branded platform, Yirongzhan (???) and mobile
app, UA Rongyidai (UA???). UAF will continue its online-to-offline approach
which balances the power of online reach, as well as providing the personal
"last mile" service through its branch network*
*Principal Investments*
*- Segment assets amounted to HK$15,937 million as at 31 December 2017, and
contributed HK$1,061 million to pre-tax profit (2016: HK$472.6 million)*
*- The segment assets are invested across public equities (17%), private
equities (27%), public credit (22%), private credit (20%) and real estate
(13%). All the strategies contributed positively to the bottom line.*
*- Private Equities delivered the highest return of 20%. Our financial
services sector expertise has landed us attractive direct and co-investments
during the year, which in turn created further partnership opportunities for
our existing businesses. We are pleased with the long-term potential of the
portfolio that we have built and some current investments should have
revaluation potential in the medium term. *
*.
- Page 2 of 3 -
Mortgage Loans*
*- In its second full year of operation, Sun Hung Kai Credit's loan
portfolio surpassed the HK$2 billion mark in December 2017, and was the top
ranked non-bank mortgage provider in terms of the number of new loans
originated for first mortgages in Hong Kong. *
*- The segment contributed HK$35 million to pre-tax profit, compared to
HK$1.8 million in 2016.*
*- As the business scales up, management will also put a high priority on
efficiency gains to improve returns, while adopting a prudent approach to
credit quality.*
*Financial Services*
*- Pre-tax contribution from this segment was significant at HK$139.9
million (2016: HK$182.3 million). The decline was mainly due to the lower
net accounting gain from our 30% interest in Sun Hung Kai Financial
business, which was rebranded Everbright Sun Hung Kai ("EBSHK") in December
2017.*
*- EBSHK's client assets under management, custody and/or advice surpassed
HK$100 billion at the end of 2017. Leveraging on its local heritage as part
of the Group and the Mainland network of its new parent, it is expected that
synergies should accelerate going forward. *
*- LSS Financial Leasing (Shanghai) Limited (40% shareholding) successfully
expanded its business lines from corporate to consumer auto leasing and
several alliances to expand its business reach, connecting financing to new
transport models. *
- End -
About Sun Hung Kai & Co. Limited
Sun Hung Kai & Co. Limited (the "Group") is an investment 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,
portfolio of businesses and investments across multiple asset classes. It is
the major shareholder of leading consumer finance firm United Asia Finance,
and a substantial shareholder of Everbright Sun Hung Kai. The Group
currently holds about HK$37 billion* in total assets.
*As at 31 December 2017
*For more information about Sun Hung Kai & Co. Limited (SEHK: 86), please
visit its website at www.shkco.com [1].*
For enquiries, please contact:
Mokka Mok +852 2533 9971 mmok2@webershandwick.com
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Document title: Sun Hung Kai & Co 2017 EPS increased 67% Strong growth
across all asset classes
21/03/2018 Dissemination of a Marketing Press Release, transmitted by EQS
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(END) Dow Jones Newswires
March 21, 2018 08:37 ET (12:37 GMT)
