Stock Track | SHK PPT Stock Plunges as S&P Cites Tighter Margins Amid Housing Slump

Stock Track10-08

Shares of Sun Hung Kai Properties (SHK PPT) plummeted by 5.56% on Monday, following a rating outlook downgrade from S&P Global Ratings. The rating agency revised its outlook on the Hong Kong-based developer to negative from stable, citing concerns over weakening margins and increasing leverage amid a steep decline in housing prices.

According to S&P, SHK PPT's adjusted EBITDA margin dropped to 45.75% in fiscal 2024 from 48.7% in fiscal 2023, as home prices in Hong Kong fell by a staggering 75% between January and mid-September. The agency expects the company's debt-to-EBITDA ratio to temporarily increase to 3.5x, which is S&P's downside trigger.

While S&P expects SHK PPT to be conservative in purchasing land and channel its cash proceeds towards relieving debt, the agency warned that a lower rating is possible if the real estate market erodes significantly and the company's sales and margins are markedly below expectations. Conversely, an outlook revision to stable would hinge on the company's sales and margins falling close to expectations, as well as controlled debt.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1118398369?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-10-08 20:08","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1118398369","market":"hk","top_or_hot":-1,"title":"Stock Track | SHK PPT Stock Plunges as S&P Cites Tighter Margins Amid Housing Slump","media":"Stock Track","content":"<p>Shares of Sun Hung Kai Properties (SHK PPT) plummeted by 5.56% on Monday, following a rating outlook downgrade from S&P Global Ratings. The rating agency revised its outlook on the Hong Kong-based developer to negative from stable, citing concerns over weakening margins and increasing leverage amid a steep decline in housing prices.</p>\n\n<p>According to S&P, SHK PPT's adjusted EBITDA margin dropped to 45.75% in fiscal 2024 from 48.7% in fiscal 2023, as home prices in Hong Kong fell by a staggering 75% between January and mid-September. The agency expects the company's debt-to-EBITDA ratio to temporarily increase to 3.5x, which is S&P's downside trigger.</p>\n\n<p>While S&P expects SHK PPT to be conservative in purchasing land and channel its cash proceeds towards relieving debt, the agency warned that a lower rating is possible if the real estate market erodes significantly and the company's sales and margins are markedly below expectations. Conversely, an outlook revision to stable would hinge on the company's sales and margins falling close to expectations, as well as controlled debt.</p>","source":"ai_movement_en","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stock Track | SHK PPT Stock Plunges as S&P Cites Tighter Margins Amid Housing Slump</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStock Track | SHK PPT Stock Plunges as S&P Cites Tighter Margins Amid Housing Slump\n</h2>\n\n<h4 class=\"meta\">\n\n2024-10-08 20:08 北京时间&nbsp;&nbsp;&nbsp;<strong>Stock Track</strong>\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Sun Hung Kai Properties (SHK PPT) plummeted by 5.56% on Monday, following a rating outlook downgrade from S&P Global Ratings. The rating agency revised its outlook on the Hong Kong-based ...</p>\n\n<a href=\"\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00016","symbol_name":"新鸿基地产","start_time":0,"source_url":"","article_id":"1118398369","we_media_id":"1086803395","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1118398369","pubTimestamp":1728389309,"columns":[],"sourceInfo":{"source_id":"ai_movement_en","name":"Stock Track"},"weMediaInfo":{"media_name":"Stock Track","introduction":"Track stock‘s movements and relevant news","home_visible":1,"id":"1086803395","head_image":"https://static.tigerbbs.com/a81accab1e7ee4144dc051f71903a390"},"summary":"Shares of Sun Hung Kai Properties  plummeted by 5.56% on Monday, following a rating outlook downgrade from S&P Global Ratings. The rating agency revised its outlook on the Hong Kong-based developer to negative from stable, citing concerns over weakening margins and increasing leverage amid a steep decline in housing prices.According to S&P, SHK PPT's adjusted EBITDA margin dropped to 45.75% in fiscal 2024 from 48.7% in fiscal 2023, as home prices in Hong Kong fell by a staggering 75% between Jan","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"00016":"新鸿基地产"},"translate_title":"标准普尔称房地产市场低迷导致利润率收紧，新鸿基PPT股价暴跌","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00016":1},"content_text":"Shares of Sun Hung Kai Properties (SHK PPT) plummeted by 5.56% on Monday, following a rating outlook downgrade from S&P Global Ratings. The rating agency revised its outlook on the Hong Kong-based developer to negative from stable, citing concerns over weakening margins and increasing leverage amid a steep decline in housing prices.\nAccording to S&P, SHK PPT's adjusted EBITDA margin dropped to 45.75% in fiscal 2024 from 48.7% in fiscal 2023, as home prices in Hong Kong fell by a staggering 75% between January and mid-September. The agency expects the company's debt-to-EBITDA ratio to temporarily increase to 3.5x, which is S&P's downside trigger.\nWhile S&P expects SHK PPT to be conservative in purchasing land and channel its cash proceeds towards relieving debt, the agency warned that a lower rating is possible if the real estate market erodes significantly and the company's sales and margins are markedly below expectations. Conversely, an outlook revision to stable would hinge on the company's sales and margins falling close to expectations, as well as controlled debt.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"movement","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1118398369"}