The Discounted Cash Flow (DCF) valuation of Sun Hung Kai & Co Ltd (86.HK) is 8.54 HKD. With the latest stock price at 3.50 HKD, the upside of Sun Hung Kai & Co Ltd based on DCF is 144%.

Is 86.HK a buy or a sell?

Based on the latest price of 3.50 HKD and our DCF valuation, Sun Hung Kai & Co Ltd (86.HK) is a buy. Buying 86.HK stocks now will result in a potential gain of 144%.

	Range	Selected
WACC / Discount Rate	4.9% - 6.9%	5.9%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	6.01 - 13.03	8.54
Upside	71.8% - 272.3%	144.0%

3.50 HKD

Stock Price

8.54 HKD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

86.HK DCF Valuation: Revenue & Expenses Forecast

(HKD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	3,724	4,015	3,976	4,221	4,368	4,455
% Growth	7%	8%	-1%	6%	3%	2%

Cost of goods sold	(107)	(115)	(114)	(121)	(125)	(128)
% of Revenue	3%	3%	3%	3%	3%	3%

Selling, G&A expenses	(1,063)	(1,147)	(1,136)	(1,206)	(1,247)	(1,272)
% of Revenue	29%	29%	29%	29%	29%	29%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(1,692)	(1,825)	(1,807)	(1,918)	(1,985)	(2,024)
% of Revenue	45%	45%	45%	45%	45%	45%

Tax expense	(270)	(291)	(288)	(306)	(317)	(323)
Tax rate	31%	31%	31%	31%	31%	31%

Net profit	591	638	631	670	694	707
% Margin	16%	16%	16%	16%	16%	16%