Sun Hung Kai & Co. Limited · HKEX:86
Sun Hung Kai & — H1 2015 Earnings Presentation
19 slides from Sun Hung Kai &'s earnings presentation, Aug 21, 2015
Slide 1: Interim Results Announcement for the Six months ending 30 June 2015
Stock code: 86.HK Sun Hung Kai & Co Interim Results Announcement for the Six months ending 30 June 2015 21 August 2015 1
Slide 2: Important - Disclaimer
Important - Disclaimer By attending or viewing this Presentation you are agreeing to be bound by the terms and restrictions set out below. The information contained in this presentation and the accompanying slides and materials (the “Presentation”) is confidential. You must not re-distribute, reprod
Slide 3: 1H2015 Final Results Highlights
1H2015 Final Results Highlights (HK$ million) 1H2015 1H2014 change Revenue* 2,169 1,990 +9% Profit attributable to owners of the Company 3,631 610 +5x - Excluding sale gain 597 610 -2% Per Share Data (HK Cents) EPS 161.4 28.8 Interim DPS 12 10 BVPS $8.1 $ 6.4 SHKF/ EB transaction an important milest
Slide 4: SHKFGL Transaction
SHKFGL Transaction Sale of 70% equity interest in SHKF to Everbright Securities: Completed on 2 June 2015 Financial impact: - Proceeds $ 4,095m - $3,034m gain - Up to 2 June 2015 : discontinued operations ($3,229m including the gain) - After 2 June 2015 : 30% associate under Principal Investments -
Slide 5: 1H2015 Profit Analysis (HK$m)
1H2015 Profit Analysis (HK$m) 3,631 ~6x 3,229 1,150 654 +3% +97% 174 106 163 +75% -32% -34% 402 -16% Operating Bad and doubtful Total non Tax Non-controlling Attrib Profit Discontined Profit Attrib to Earnings before debts operating interests from continuing Operations Owners of the Bad Debts income
Slide 6: Loans and Interest Income
Loans and Interest Income Loan Balances^ (HK$m) Interest Income (HK$m) 2,500 16,000 Total Loans 15,098 (+16% YoY) Interest Income 2,130 (+9% YoY) 1,066 4 14,000 2,000 195 3,346 3 172 12,000 3,650 2,732 10,000 1,500 8,000 1,000 1,931 6,000 1,779 11,392 10,249 10,381 4,000 500 2,000 - - 1H2014 2014 1H
Slide 7: June 2015 Balance Sheet Profile
June 2015 Balance Sheet Profile (HK$m) Others Others 1,649 1,117 BVPS $8.1 Goodwill and Non controlling interest 3,273 3,762 intangibles (minorities) 2.8m shares bought back in 1H2015 Principal Inv 5,140 Net Gearing 10.6% Assets Shareholders Cash and 7,885 18,330 Equity equiv Structured Finance 3,65
Slide 8: Performance by Segment
Performance by Segment ARMA PRS SUN HUNG KAI & CO. LIMITED
Slide 9: Pre-tax Contribution by Segment (HK$m)
Pre-tax Contribution by Segment (HK$m) 1,000 881 670 -24% 95 800 Group Management 296 and Support +211% 600 Principal Investments 745 400 471 -37% Consumer Finance 200 90 60 +51% Structured Finance - 1H2014 (18) 1H2015 (187) (200) 9
Slide 10: Structured Finance
Structured Finance Segment Results (HK$m) Loan by Client Industry (HK$ Million) 1H2015 1H2014 Change Revenue 197.8 186.5 6% Resources Operating costs (6.6) (19.3) -66% 2% Cost to income (% Revenue) 3.3% 10.3% Electronic Finance costs^ (95.4) (78.6) 21% Vehicles Bad and doubtful debts (8.1) - Mfg Ope
Slide 11: Consumer Finance 1H2015 Results
Consumer Finance 1H2015 Results Pre-tax Contribution (HK$ Milion) 1H2015 1H2014 Change Revenue 1,946.5 1,787.5 9% Results affected by economic headwinds in Operating Costs (698.8) (620.8) 13% Mainland China Cost to income (% Revenue) 35.9% 34.7% Revised credit and marketing strategy Finance cost^ (1
Slide 12: Bad Debts and Delinquencies
Bad Debts and Delinquencies Aging analysis for amounts past due but not impaired Bad and doubtful debts As at 30 As at 31 (HK$ Million) Note Note (HK$ million) 1H2015 1H2014 June 2015 Dec 2014 a. Amounts written off (610.6) (329.2) < 30 days 933 9.0% 805 7.1% b. Recoveries 59.8 53.2 31 – 60 days 182
Slide 13: UAF China
UAF China China Loan Balance (HK$m) Total Return on Loans (on avg gross balance, annualized) 6,000 5,067 4,378 +11% YoY 40% 40.0% 3,953 42.7% 40.6% 4,000 20% 2,000 - 0% 1H2014 2014 1H2015 1H2014 2014 1H2015 Average Loan Balance (RMB, at period end) Charge Off ratio (on gross balance, annualized) 20%
Slide 14: UAF China
UAF China Well established presence with 69,000 customers Total: 203 Branches. 18 cities New in As at June Harbin:5 City/ Province 1H 2015 2015 Hong Kong - 50 Shenyang: 11 Shenzhen - 43 Dalian:9 Shenyang 2 11 Tianjin: 7 Chongqing - 12 Qingdao: 1 Tianjin - 7 Beijing: 6 Jinan: 2 Chengdu 1 12 Yunnan pr
Slide 15: Credit Guarantee Business
Credit Guarantee Business Oct 2014 Guangzhog May 2015 Foshan Good branch productivity 15
Slide 16: UAF Hong Kong
UAF Hong Kong Hong Kong Loan Balance (HK$m) Total Return on Loans (on avg gross balance, annualized) 8,000 6,947 7,082 6,849 30% 28.8% 6,000 27.9% 28.2% 20% 4,000 2,000 10% - 1H2014 2014 1H2015 0% 1H2014 2014 1H2015 Average Loan Balance (HK$, at period end) Charge Off ratio (on gross balance, annual
Slide 17: Principal Investments
Principal Investments Period Average Pre-tax Return on average (HK$ Million) end value value contribution value for the 6 months Principal Portfolio 2,296 1,766 234 13.3% LT Investment Portfolio 1,872 487 23 4.7% Real Estate 973 835 39 4.6% Total 5,140 3,088 296 9.6% Segment Assets by Type Grow stra
Slide 18: Outlook
Outlook Proceeds to be used in business expansion: - Developing complementary financial businesses, particularly in fintech - Existing loan books - Strengthen strategic investments Up to $1 billion of share buybacks planned UA China will continue to be challenging in short term but we have diversity
Slide 19: Enquiries Contact
Enquiries Contact: Nancy Chen, CFA Head of Investor Relations Tel +852 3920 2823 Nancy.chen@shkf.com 19