Sun Hung Kai Properties 16 HK Outperform the Growing Premium Leader Price (At 06:22, 04 Aug 2016 GMT) HK$110.60

HONG KONG Sun Hung Kai Properties 16 HK Outperform The growing premium leader Price (at 06:22, 04 Aug 2016 GMT) HK$110.60

Valuation HK$ 173.53 Event - DCF 12-month target HK$ 132.00 . We reiterate our Outperform rating on Sun Hung Kai (SHKP), our top pick in Upside/Downside % +19.3 the HK property sector. We expect the company to deliver: 1) the sector’s 12-month TSR % +22.7 highest FY15-17E earnings CAGR of 15%; 2) market share expansion in Volatility Index Low terms of HK sales; and 3) resilient rental income growth. SHKP is well- GICS sector Real Estate established to maintain its leadership position in the current increasingly Market cap HK$m 320,187 challenging HK market. We raise our TP by 0.6% to HK$132.00 to reflect its Market cap US$m 40,251 earlier-than-expected launches in HK. We transfer coverage of SHKP to Free float % 59 Raymond Liu from David Ng. 30-day avg turnover US$m 78.7 Number shares on issue m 2,895 Impact

Investment fundamentals . HK sales – the premium leader. We expect SHKP’s sales to grow Year end 30 Jun 2015A 2016E 2017E 2018E reasonably well from HK$33bn in FY16E to HK$40bn in FY18E despite a high Revenue m 66,783 88,878 89,579 94,594 EBIT m 22,778 28,190 30,249 33,755 base. Its ample saleable resources of over HK$200bn should give the EBIT growth % -8.8 23.8 7.3 11.6 company flexibility to launch projects based on rapidly changing market Reported profit m 31,082 29,271 26,191 28,541 Adjusted profit m 19,825 24,582 26,191 27,775 conditions, in our view. It launched five residential projects in 7M 2016 and is EPS rep HK$ 11.15 10.24 8.97 9.77 the only developer to achieve an average take-up rate of ~80% within three EPS rep growth % -10.7 -8.2 -12.5 9.0 EPS adj HK$ 7.11 8.62 8.97 9.51 months of launch (Fig 2) when most of its peers found the going tough. EPS adj growth % -10.9 21.3 4.0 6.0 PER rep x 9.9 10.8 12.3 11.3 . HK rental – resilient growth and more new completions. The company’s PER adj x 15.6 12.8 12.3 11.6 HK rental income portfolio grew at ~10% pa to HK$15.6bn during FY11-15. Total DPS HK$ 3.36 3.68 3.68 3.68 Total DPS growth % 0.5 9.6 0.0 0.0 We expect the growth to be sustained in high single digits in the coming Total div yield % 3.0 3.3 3.3 3.3 years, due mainly to: 1) an additional 2.5m sqft of investment property to be ROA % 3.9 4.6 4.8 5.1 ROE % 4.6 5.3 5.4 5.6 completed in the next few years; 2) proactive AEIs on malls; and 3) a healthy EV/EBITDA x 12.1 11.2 10.5 9.6 occupancy cost of ~12% in FY15. Net debt/equity % 11.1 7.0 2.0 -1.2 P/BV x 0.7 0.7 0.7 0.6 . Earnings CAGR of 15% in FY15-17E. We estimate SHKP’s earnings CAGR 16 HK rel HSI performance, & rec of 15% was the highest among major large cap HK developers, vs. the sector history average of 6.0%, in FY15–17E. . FY16E dividend yield of 3.3%. We estimate the company will declare a DPS of HK$3.68 in FY16E, up 10% YoY, or a 3.3% yield. It is equivalent to a 44% payout ratio compared with 40-48% in FY11-15. We believe the share price will react positively to a higher-than-expected DPS. Earnings and target price revision

. Adjusted earnings: FY16E +1.1%, FY17E +1.7%. TP increased to HK$132.00

Note: Recommendation timeline - if not a continuous line, then there was no from HK$131.24 to reflect faster-than-expected launches in Hong Kong. Macquarie coverage at the time or there was an embargo period. Source: FactSet, Macquarie Research, August 2016 Price catalyst (all figures in HKD unless noted)

. 12-month price target: HK$132.00 based on a Sum of Parts methodology.

. Catalyst: Higher-than-expected DPS and higher sales target

Analyst(s) Action and recommendation Raymond Liu, CFA +852 3922 3629 [email protected] . SHKP trades at 12.3x FY17E PE, 0.7x PB and a 36% NAV discount. SHKP is David Ng, CFA our top pick among HK developers. +852 3922 1291 [email protected]

4 August 2016 Macquarie Capital Limited

Please refer to page 20 for important disclosures and analyst certification, or on our website www.macquarie.com/research/disclosures.

Macquarie Research Sun Hung Kai Properties

HK residential sales – the premium leader We believe Sun Hung Kai will maintain its leadership position in the current increasingly challenging market, as we expect its sales to grow from HK$33bn in FY16E to HK$40bn in FY18E despite a high base. We still see SHKP commanding premium pricing in the newly launched projects, thanks to its above- average product quality, brand image and property management services. Its ample saleable resources of over HK$200bn should give the company flexibility to launch projects based on rapidly changing market conditions, in our view. Abundant and diversified sellable resources of over HK$200bn in Hong Kong Unlike its peers, SHKP possesses sufficient saleable resources allowing it to align its launches with rapidly changing market conditions. We estimate it has quality saleable resources of HK$209bn, or five years of land bank, which provides better visibility on its future growth. The company changed its launching mix in 1H16 and commanded over a 40% market share after successful launches of Ultima II and Ocean Wings. Contracted sales to grow from HK$33bn in FY16E to HK$40bn in FY18E We estimate SHKP’s contracted sales will reach HK$33bn in FY16E and grow 16% YoY to HK$38bn in FY17E, hitting a new high of HK$40bn in FY18E. Key contributors in FY16E would be Ultima II (HK$9.1bn), Century Link (HK$6.0bn) and Ocean Wings (HK$5.2bn). We expect the company to maintain a balanced mix of new launches in FY17E with most of them being in the urban areas with good take-up rates. Key projects include: . Mass market project – Grand YOHO Phase I (HK$6.2bn to be achieved in FY17E, launching in CY3Q16, ASP of HK$12k psf); . Luxury project – Victoria Harbour in North Point (HK$4.8bn, 4Q16, ASP of HK$25k psf); and . Mid-end project – Nam Cheong Station Phase I (HK$7.7bn, 1Q17. ASP of HK$16.0k psf).

Fig 1 Sun Hung Kai property sales in Hong Kong (HK$bn)

45.0 39.8 40.0 36.9 37.8 35.0 32.0 32.7

30.0 15.6 10.0 25.0 16.0 21.4 20.0 11.0 15.0 16.3 13.6 12.0 10.0 6.6 21.3 22.0 16.0 5.0 11.0 11.3 7.5 6.2 7.0 8.0 - FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E

1H (Jul - Dec) 2H (Jan - Jun)

Source: Company data, Macquarie Research, August 2016

4 August 2016 2 Macquarie Research Sun Hung Kai Properties

The best selling developer in 1H16, and the momentum should sustain We expect its strong sales momentum to be sustained in the coming 12 months. We believe 1H16 was the most vulnerable and challenging period post the US interest rate hike, the first since 2006, as sentiment was weak and buyers were hesitant to return to the residential market. However, the company delivered strong sales growth, leading the overall market at a time when most of its peers were still finding it challenging to launch projects, thanks to successful marketing strategy and better-than-peers product quality. We estimate SHKP enjoyed a ~40% market share during the period and achieved over HK$18bn sales. The company launched five residential projects in 7M16 and is the only developer to deliver an average take-up rate of ~80% within three months of launch.

Fig 2 Sales performance of new residential launches YTD

Take up rate (%) Developer(s) Project No. of units Timing Segment District Area 2 week 1 month 3 month Henderson Land Wellesley 90 Jan-16 Luxury HK Mid-Levels 13% 13% 17% Henderson Land Harbourpark 161 Jan-16 Mass KL Cheung Sha Wan 11% 14% 25% Henderson Land/New World Double Cove V - Summit 176 Mar-16 Mass NT Ma On Shan 27% 33% 47% Kerry Mantin Heights 1,429 Apr-16 Luxury KL Homantin 4% 5% 6% K Wah/Sino Land The Spectra 912 Mar-16 Mass NT Yuen Long 19% 25% 38% Sino Land Commune Modern 296 Jun-16 Mass NT Fanling 94% 97% n/a Sino Land Park Mediterranean 285 Jul-16 Mass NT Sai Kung 11% 11% 11% Wheelock (Wharf) /Nan Fung Mount Nicholson Phase I 17 Feb-16 Luxury HK The Peak 6% 6% 12% Wheelock One Homantin 561 Mar-16 Luxury KL Homantin 8% 12% 16% Wheelock Savannah 804 May-16 Mass NT Tseung Kwan O 63% 64% 74% New World Bohemian house 191 Apr-16 Mid-end HK Sai Ying Pun 72% 73% 92% CK Property La Mansion 41 Feb-16 Luxury NT Yuen Long 7% 10% 24% CK Property The Zumurud 228 Mar-16 Luxury KL Kowloon Tong 0% 0% 0% Sun Hung Kai Twin Regency 523 Feb-16 Mass NT Yuen Long 30% 46% 76% Sun Hung Kai Ultima II 271 Mar-16 Luxury KL Homantin 47% 80% 82% Sun Hung Kai Ocean Wings 628 Apr-16 Mass NT Tseung Kwan O 51% 70% 80% Sun Hung Kai Park YOHO P1B 499 Jun-16 Mass NT Yuen Long 53% 80% 83% Sun Hung Kai Park YOHO P1C 166 Jul-16 Mass NT Yuen Long 86% 86% 86% COLI No. 62 Begonia Road 10 Jul-16 Villa KL Kowloon Tong 10% n/a n/a Swire Alassio 197 Apr-16 Luxury HK Mid-Levels 61% 89% 93% Phoenix Property The Morgan 111 Mar-16 Luxury HK Mid-Levels 7% 7% 8% Paliburg/URA The Ascent 157 Jul-16 Mass KL Cheung Sha Wan 89% n/a n/a Source: Company data, August 2016

Fig 3 Attributable HK property sales (HK$bn) Fig 4 Attributable China property sales (HK$bn)

45 FY15 FY16E FY17E FY18E 30 FY15 FY16E FY17E FY18E 40 25 35

30 20

25 15 20

15 10

10 5 5

- - CKOP HEND SINL KERR SHKP KWAH NWDL WHEE CKOP HEND SINL KERR SHKP KWAH NWDL WHEE Source: Company data, Macquarie Research, August 2016 Source: Company data, Macquarie Research, August 2016

4 August 2016 3 Macquarie Research Sun Hung Kai Properties

Hong Kong rental portfolio – balanced and growing portfolio Sun Hung Kai’s investment portfolio is well diversified, so its overall rental income should continue to grow in the coming years, in our view. We estimate 73% of the company’s GAV exposure comes from investment properties, similar to most of its HK developer peers (55-79%), of which, its HK retail portfolio accounts for ~53% of gross rental income while office contributes ~33%. We estimate its overall rental income will grow 6% pa to HK$20bn in FY15-19E, thanks to incremental new completions of over 2.5m sqft, proactive AEIs, and healthy occupancy costs in its retail portfolio. FY11-15 HK retail rental income CAGR of 10%, with more to come In contrast to most of its peers, SHKP’s shopping malls are widely spread out, mostly located strategically along the railway lines. Overall gross rental income from Hong Kong was up 8% YoY to HK$8.3bn in 1HFY16, primarily due to positive rental reversions and higher rents for new leases.

Fig 5 Satisfactory rental income growth in Hong Kong in FY11-15, sustained in 1H16 (HK$bn)

FY11-15 FY11 FY12 FY13 FY14 FY15 1H15 1H16 CAGR: 10.3% 9 8.3 8 FY11-15 1H16 CAGR: 9.7% 7 +9.4% YoY 6 5.6 5.2 1H16 5 4.4 +8.0% YoY 4 3.6 FY11-15 FY11-15 FY11-15 2.7 3 CAGR: 5.6% CAGR: 9.7% CAGR: 9.7% 2 0.8 0.9 1 0.4 0.6 0.4 0.6 - Residential Shopping Centre/Shops Office Car Park Industrial and others

Source: Company data, August 2016

Well diversified shopping mall portfolio across Hong Kong and most atop MTR stations Its top ten shopping malls achieved a gross rental income of HK$5.5bn, accounting for ~66% of its total HK retail rental income in FY15. These malls are New Town Plaza (Shatin), Tai Po Mega Mall (Taipo), Landmark North (Sheung Shui), V City (Tuen Mun), Metroplaza (Kwai Fong), APM (Kwun Tong), East Point City (Tseung Kwna O), MOKO (Mongkok), The Sun Arcade (Tsimshatsui) and IFC Mall (Central).

Fig 6 Portfolio of its major completed investment properties in Hong Kong

Source: Company data, August 2016

4 August 2016 4 Macquarie Research Sun Hung Kai Properties

Shopping mall occupancy cost was ~12% in FY15 SHKP’s HK retail portfolio should be more resilient due to its healthy occupancy cost. We believe HK retail sales continue to deteriorate, with 16 consecutive months of YoY monthly retail sales declines. However, we believe SHKP has the potential to achieve higher rental income given its diversified mix that caters both domestic consumption and tourism spending. During FY15 results, its chairman commented that the occupancy cost of its HK shopping malls was ~12%, similar to non-discretionary focused Link REIT (12%). We view it as a healthy level compared to other major HK landlords – Wharf Holding (Harbour City and Times Square in HK, 20%), Hysan Development (23%) and Mapletree GCCT (Festival Walk, 18%). Read-through from recent interim results of HK landlords and REITs We expect occupancy cost to go up and overall rental income to grow slightly in FY16E. Our takeaways are: 1) developers should deliver resilient growth in overall HK retail rental income given their diversified mixes and proactive AEIs, despite mild declines in retail sales; and 2) office portfolio should continue to deliver growth.Hang Lung Properties (101 HK, HK$16.36, Outperform, TP: HK$18.49), which owns a diversified rental portfolio in HK similar to a lot of HK developers, saw a 2% decline in retail sales in 5M16 and outperformed Hong Kong overall retail sales by 9ppt. Its 1H16 overall rental income grew 7% YoY due to active AEIs. Upcoming completion of over 2m sqft in its HK investment property portfolio SHKP owns a rental portfolio of 28.8m sqft as at the end of 2015, with an average occupancy rate of 95%, with additional ~2.5m sqft of investment properties under development. We expect significant contributions from these projects in the coming years. Major completions expected include YOHO Mall II (471k sqft) in FY17E, Nam Cheong station mall (298k sqft) in FY18E and North Point complexes (532k sqft) during FY18-19E.

Fig 7 Summary of HK investment properties (completed and under dev, in m sqft)

14 Completed Under development 1.3 12

6 10.7 10.0 0.8 0.4 4

2 3.5 3.6 0.9 0 Residential Shopping Office Hotel Industrial Centre/shops Source: Company data, Macquarie Research, August 2016

Fig 8 Summary of upcoming major investment projects Project District Type GFA (k sqft) Year of completion GFA (k sqft) YOHO Mall I Yuen Long Mall 249 Sep 15 249 Popwalk Phase I (Retail portion of The Wings II) Tseung Kwan O Mall 66 Aug 16 Popwalk Phase II (Retail portion of The Wings IIIA) Tseung Kwan O Mall 72 End 16 Popwalk Phase III (Retail portion of The Wings IIIB) Tseung Kwan O Mall 24 Early 17 YOHO Mall II (Retail portion of Grand YOHO) Yuen Long Mall 471 FY17 633 Ocean Popwalk (Retail portion of Ocean Wings) Tseung Kwan O Mall 80 FY18 Nam Cheong Station mall Nam Cheong Mall 298 FY18 Victoria Harbour project PII North Point Hotel 388 FY18 Siu Lek Yuen Hotel Shatin Hotel 344 FY18 1,110 Victoria Harbour project PI North Point Mall 144 FY19 Yuen Long station DEV (retail) Yuen Long Mall 107 After FY19 251 2,243 Source: Company data, Macquarie Research, August 2016

4 August 2016 5 Macquarie Research Sun Hung Kai Properties

Peer comparison – Earnings growth and HK property sales Earnings CAGR of 15% in FY15-17E We estimate SHKP’s earnings CAGR was the highest among major large cap HK developers at 14.9%, vs. the sector average of 6.0%, in FY15–17E. Another developer with a double-digit earnings CAGR is Cheung Kong Property (1113 HK, HK$53.90, Outperform, TP: HK$66.34) at 10.1%.

Fig 9 Core earnings of major HK developers during FY15-17E

30 CAGR: 10.1% CAGR: 0.8% CAGR: -0.7% CAGR: 2.6% CAGR: 14.9% CAGR: 34.9% CAGR: -2.5% CAGR: -6.0% 26.2 24.6 25 FY15 FY16E FY17E

19.3 19.8 20 18.9

15.6 15 11.7 11.0 11.2 10.2 10.6 9.4 10 6.8 6.4 6.4 5.3 5.3 5.2 5 3.5 3.7 3.7 2.2 2.4 1.3

- CK Property Henderson Land Sino Land Kerry prop Sun Hung Kai K Wah New World Dev Wheelock Source: Company data, Macquarie Research, August 2016

FY16E dividend yield of 3.3% We compare dividend yields of 21 major HK property companies. We believe Sun Hung Kai offers a reasonable dividend yield of 3.3%, but lower than most of its peers’. On average, HK developers, landlords and REITs offer 3.8%, 3.8% and 5.5% yields, respectively. We have assumed 10% DPS increment in FY16E to HK$3.68. We expect the share price to react positively to a DPS increment of anything above 10%.

Fig 10 FY16E dividend yields of major HK property companies

Developers Landlords REITs 9.0% 8.2% 8.0% 7.0% 6.6% 7.0% 6.0% 4.9% 4.6% 4.8% 4.7% 5.0% 4.3% 4.3% 4.5% 4.5% 3.7% 4.0% 3.8% 4.0% 3.5% 3.3% 3.3% 3.4% 3.0% 3.1% 3.0% 2.1% 2.0% 1.0% 0.0%

Source: Bloomberg, Company data, Macquarie Research, August 2016

4 August 2016 6 Macquarie Research Sun Hung Kai Properties

What has changed? We have increased our price target by 0.6% and our NAV by 0.5% due to the following changes in our assumptions: . Earlier-than-expected launches of several HK projects (Grand YOHO Phase I, St Moritz) . Change in CNYHKD FX rate from 1.20 to 1.17

Fig 11 Estimate changes versus consensus (HK$m) Price target NAV Revenue Underlying profit* HK$ HK$ 2016E 2017E 2016E 2017E

New 132.00 173.53 88,878 89,579 24,582 26,191 Old 131.24 172.70 88,888 88,960 24,314 25,746 Difference (%) 0.6% 0.5% 0.0% 0.7% 1.1% 1.7%

Consensus 87,382 91,245 23,366 23,761 Difference (%) 1.7% -1.8% 5.2% 10.2% * Adjusted for revaluation gains of investment properties and net of deferred tax. Source: Bloomberg, Macquarie Research, August 2016

Valuation methodology Our end-2017 NAV estimate of HK$173.53 includes HK$45.47 of development properties for sale, HK$134.48 of investment properties for lease and HK$6.41 of net debt and other liabilities. Our new target price of HK$132.00 is at a 24% discount to our end-FY17E NAV. Our NAV estimate is the sum of GAV (gross asset value, before deducting net debt and other working capital) of individual projects plus net cash, net working capital and other investments of the whole company. Non-real estate assets and investments are stated at the latest reported book value. GAV is the sum of all projects' free cash flows (FCF) over the next 10 years, as shown in the table below. We assume all rental assets will be disposed of in 2025, and there is no terminal value. We assume property prices in Hong Kong to correct by 5% in 2017. For mainland China, we assume property prices to increase by 5% for the luxury segment in tier-one cities and 5-10% for the rest of tier 1-2 cities in 2016E, and turn flattish in 2017E. The discount rate we use is based on a risk- free rate of 1.5%, an equity risk premium of 6.0% and historical beta of 1.05. For projects with negative total free cash flows, especially investment properties, we keep a floor value at the costs already incurred and carried on the book. Our target price is an adjusted version of NAV. For our target price calculation, we factor in only the next three years of FCF derived from a bottom-up project launch projection, but followed by FCF based on top-down company-wide volume and price growth or decline assumptions in the remaining seven years, without considering individual project performance. The three stages of FCF are: 1) near-term (5% of total GAV), based on the current land bank without factoring in any new acquisitions between 2016 and 2018; 2) medium-term (30% of total GAV), based on continuous replenishment to keep the land bank size unchanged over 2019-21; and 3) long-term (65% of total GAV) based on a gradually depleting land bank after 2021 without acquisitions. Our target price values non-real estate assets using P/E, P/B or EV/EBITDA multiples. A subjective forward beta of 1.10 is used for our target price instead of historical beta of 0.78 for NAV to account for higher management execution risks and future market volatilities affecting the valuation of assets. NAV reflects the value of the land bank and tends to be higher than reported book value (HK$158.29/sh at Dec 2015). In our view, the latter does not give sufficient credit or discount to the company’s market positioning, growth aspirations and execution track record. We believe our target price captures all of these aspects and it is heavily influenced by our judgment of management’s quality, as reflected in our choice of beta and our medium-term assumptions for the company’s overall volume, price and cost growth. A detailed valuation breakdown is shown in Figure 13.

4 August 2016 7 Macquarie Research Sun Hung Kai Properties

Fig 12 Enterprise free cash flows Near term Medium term Long term (HK$bn) fiscal year 5% of GAV 30% of GAV 65% of GAV 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Cash flows of development properties only (based on existing land bank, attributable basis unless specified) Contracted sales (Gross) 42.5 52.1 53.8 58.4 95.9 57.7 53.5 34.7 10.2 0.9 Cash sales 40.2 45.6 48.6 54.3 89.1 49.7 42.6 27.2 8.9 0.9 Land purchase (10.0) (4.5) (13.0) (9.7) (7.5) (2.2) - - - - Construction capex (14.3) (13.3) (16.9) (18.1) (16.8) (13.9) (9.1) (5.0) (1.2) (0.1) SGA outflows (2.4) (2.7) (2.9) (3.3) (5.4) (3.1) (2.6) (1.6) (0.5) (0.1) Taxes and other outflows (3.0) (3.3) (3.9) (6.6) (4.9) (4.4) (3.7) (3.1) (1.6) (0.6) #1 Free cash flows 10.6 21.7 12.0 16.6 54.5 26.2 27.2 17.4 5.5 0.1 Cash flows of investment properties only (attributable) Rental income of operating assets 23.9 24.3 25.0 26.8 27.9 28.9 29.6 30.3 30.6 30.7 Related expenses (10.5) (10.6) (11.0) (12.2) (12.8) (13.4) (13.8) (14.3) (14.3) (14.3) Total capex (5.1) (5.5) (6.7) (5.1) (5.1) (3.6) (2.2) (0.6) (0.1) - #2 Free cash flows 8.3 8.1 7.2 9.4 9.9 11.8 13.5 15.5 16.2 16.4 Attributable free cash flow (including both development properties and investment properties) 18.9 29.8 19.2 26.0 64.5 38.0 40.7 32.9 21.7 16.5 For valuation purposes of development properties: existing land bank + land bank replenishment during medium term (attributable) Cash sales 40.2 45.6 48.6 32.0 25.6 20.5 20.5 20.5 20.5 20.5 Total capex 29.7 23.9 36.6 14.6 11.8 9.8 7.4 7.4 7.4 7.4 #3 Free cash flows 10.6 21.7 12.0 17.4 13.8 10.7 13.2 13.2 13.2 13.2 Source: Macquarie Research, August 2016

Fig 13 Target price derivation

HK$/share

DCF for development properties 41.06 A / shares GAV for investment properties 94.13 B / shares Net cash (5.66) C / shares Other assets 2.46 D / shares Target price 132.00 (A+B+C+D) / shares HK$ m 508,132 A + B Total development properties (DCF) 118,880 A Near term from 2014 to 2016 5,942 Medium term from 2017 to 2019 35,128 Long term beyond 2019 77,809 Total investment properties (NAV) 389,252 B Hotel 28,763 Retail for Lease 178,766 Office for Lease 154,005 Residential for Lease 16,727 Carparks 10,991 Source: Macquarie Research, August 2016

Fig 14 NAV derivation HK$/share

NAV/share 173.53 E / shares

HK$ m - NAV 502,388 E = F + X + Y +Z Total gross asset value 520,956 F = G + H Net cash (16,381) X Net working capital (10,244) Y Other investments 8,057 Z Total development properties 131,644 G Residential 121,715 Retail for Sale 20 Office for Sale 9,908 Total investment properties 389,312 H Hotel 28,763 Residential for Lease 16,727 Retail for Lease 178,766 Office for Lease 154,005 Carparks 11,050 No. of outstanding shares (m) 2,895 Source: Macquarie Research, August 2016

4 August 2016 8 Macquarie Research Sun Hung Kai Properties

Fig 15 Consensus 12mth forward PER for SHKP

35 180 F12M PE (LHS) 5YR-AVE F12M PE (LHS) Stock price (RHS) 160 30 140 25 120

20 100

15 80 60 10 40 5 20

- 0 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Source: Datastream, Macquarie Research, August 2016

Fig 16 P/BV for SHKP

2.5000 L12M PB (LHS) 5YR-AVE L12M PB (LHS) Stock price (RHS) 180 160

2.0000 140

120 1.5000 100

80 1.0000 60

0.5000 40 20

- 0 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Source: Datastream, Macquarie Research, August 2016

Fig 17 12-mth forward NAV for SHKP 40% 180 NAV discount (%, LHS) 5YR-AVE F12M NAV discount (LHS) Stock price (RHS) 30% 160

20% 140 10% 120 0% 100 -10% 80 -20% 60 -30%

-40% 40

-50% 20

-60% 0 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Source: Datastream, Macquarie Research, August 2016

4 August 2016 9 Macquarie Research Sun Hung Kai Properties

Key assumptions and sensitivity analysis

Fig 18 Key price and rental assumptions China – Tier-one cities China – Tier-two cities Hong Kong Residential price growth 2016 2017F 2018F Cap rate 2016 2017F 2018F Cap rate 2016 2017F 2018F Cap rate Varian Varia Varian ce nce ce

Villas 5% 0% 0% 5% 0% 0% 0% -5% 0% Luxury 5% 0% 0% 5% 0% 0% 0% -5% 0% Above average 5% 0% 0% 10% 0% 0% 0% -5% 0% Mass market 5% 0% 0% 10% 0% 0% 0% -5% 0% Remote 5% 0% 0% 5% 0% 0% 0% -10% 0% Office rental growth Top Grade A 0% 0% 0% 6.0% 0% 0% 0% 9.0% 6% 3% 3% 4.0% Grade A 0% 0% 0% 8.0% 0% 0% 0% 10.0% 5% 3% 3% 3.5% Grade B 0% 0% 0% 10.0% 0% 0% 0% 11.0% 1% 0% 2% 5.5% Retail rental growth Mall 0% 0% 0% 7.0% 0% 0% 0% 8.0% -5% 0% 2% 4.5% Street 0% 0% 0% 8.0% 0% 0% 0% 9.0% -5% 0% 2% 3.5% Auxiliary 0% 0% 0% 9.0% 0% 0% 0% 10.0% -5% 0% 2% 5.5% Hotel rental growth 5-star 0% 0% 0% 8.0% 0% 0% 0% 9.0% 0% 0% 0% 6.5% 4-star 0% 0% 0% 9.0% 0% 0% 0% 10.0% 0% 0% 0% 7.5% 3-star 0% 0% 0% 10.0% 0% 0% 0% 11.0% 0% 0% 0% 8.5% Source: Company data, Macquarie Research, August 2016

Fig 19 Scenario analysis Worst Worse Better Best Base

Results NAV (HK$/share) 143.0 161.4 196.6 211.3 173.53 Implied value (HK$ /share) 107.2 120.1 149.8 160.7 132.00

Revenue (HK$ bn) 2016E 86.4 87.0 89.5 91.1 88.9 2017E 82.0 84.5 93.7 96.9 89.6 Earnings (HK$ bn) 2016E 22.5 22.9 25.2 26.3 24.6 2017E 20.7 22.2 29.2 31.4 26.2 Free Cash Flows (HK$ bn) 2016E 7.3 7.3 10.3 11.8 10.6 2017E 13.9 15.6 25.2 27.1 21.7 Price 2016 Variance -10% -10% 0% 5% n/a 2017 Growth -10% -10% 5% 5% n/a Volume 2016 Variance 0% 0% 0% 0% - 2017 Variance -5% 0% 0% 0% - Source: Macquarie Research, August 2016

4 August 2016 10 Macquarie Research Sun Hung Kai Properties

Fig 20 Financial summary (HK$m) Summary 2014 2015 2016E 2017E 2018E

Revenue 75,100 66,783 88,878 89,579 94,594 Cost of sales (44,989) (38,989) (55,228) (53,780) (55,145) Gross profit 30,111 27,794 33,650 35,800 39,449 Adjusted net profit 21,415 19,825 24,582 26,191 27,775 Gross margin 40% 42% 38% 40% 42% Underlying profit margin 29% 30% 28% 29% 29% Financial stability Net gearing* 16% 11% 7% 2% -1% Interest coverage 10.3 8.9 10.4 11.1 12.4 Associates/Net profit 26% 28% 14% 13% 12% SGA/Revenue 8% 8% 7% 7% 7% Tax/Pre-tax income 18% 15% 18% 18% 21% Net operating cash flow (3,706) 39,683 30,781 41,273 35,162 Net investing cash flow (10,840) (27,613) (6,020) (6,488) (7,556) Net financing cash flow 16,615 2,105 (7,706) (11,035) (11,810) Source: Company data, Macquarie Research, August 2016

Fig 21 SHKP revenue growth, FY13–19E Fig 22 SHKP adjusted earnings growth, FY13–19E

120 HKD bn 35.0 HKD bn 108.3 31.1

100 94.6 30.0 27.8 88.9 89.6 26.2 24.6 25.0 80 75.1 21.4 66.8 19.8 20.0 18.6 60 53.8 15.0 40 10.0

20 5.0

- - 2013 2014 2015 2016E 2017E 2018E 2019E 2013 2014 2015 2016E 2017E 2018E 2019E

Source: Company data, Macquarie Research, August 2016 Source: Company data, Macquarie Research, August 2016

Fig 23 Property-related revenue breakdown and contributions of associates (HK$m) Revenue 2016E 2017E 2018E Share of associates 2016E 2017E 2018E

Residential for Sale 41,106 36,052 41,364 Residential for Sale 232 141 13 Retail for Sale - - - Retail for Sale 49 - 5 Office for Sale 234 5,097 4,185 Office for Sale 141 130 74 Development properties 41,340 41,149 45,549 Development properties 422 271 92

Hotel 3,647 3,647 3,670 Hotel 46 54 53 Residential for Lease 630 630 631 Residential for Lease 68 68 68 Retail for Lease 9,486 9,527 9,764 Retail for Lease 1,016 1,066 1,072 Office for Lease 5,447 5,569 5,865 Office for Lease 1,463 1,516 1,618 Investment properties 19,210 19,373 19,930 Investment properties 2,593 2,704 2,811

Car parks 675 675 675 Car parks - - - Total 61,225 61,197 66,154 Total 3,015 2,975 2,903 China and others 6,216 6,368 14,403 China and others 898 840 706 Hong Kong 55,009 54,829 51,751 Hong Kong 2,117 2,135 2,198

Total 61,225 61,197 66,154 Total 3,015 2,975 2,903 Source: Company data, Macquarie Research, August 2016

4 August 2016 11 Macquarie Research Sun Hung Kai Properties

Fig 24 Revenue breakdown of development projects by ASP (HK$ psm)

70 HKD bn

50 15.1

40 9.9 9.5 12.4 11.7 18.9 30 12.6 7.1 24.9 17.8 20 8.8 9.5 14.6 10 4.4 2.1 13.0 13.3 9.2 7.1 8.6 - 2016E 2017E 2018E 2019E 2020E

Below 115000 115,000 - 130,000 130,000 - 175,000 175,000 - >=300,000

Source: Macquarie Research, August 2016

Fig 25 Breakdown of contracted sales by gross margin (%) – forecasts

2019E0% 9% 10% 54% 12% 5% 9%

2018E 0%7% 7% 47% 21% 4% 14%

2017E0% 7% 6% 51% 16% 5% 15%

2016E0%1% 27% 46% 1% 12% 13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

<00% 0-15% 15-25% 25-35% 35-45% 45-55% >55%

Source: Macquarie Research, August 2016

Fig 26 Breakdown of property sales and GFA completion In reported currency, fiscal year 2016E 2017E 2018E 2019E 2020E

Development and investment properties, gross, before sharing (000 sqm) GFA Completed 754 839 1,177 828 1,193 For sales (development properties) 576 748 700 603 802 For rent (investment properties) 179 90 477 225 391 Development properties, gross, before sharing (000 sqm) GFA sold by contract 586 826 735 799 1,266 GFA inventory 461 438 364 226 164 Attributable GFA sold by contract, after sharing (000 sqm) 440 596 542 610 1,071

Development properties of subsidiaries, after sharing GFA Booked (000 sqm) 286 431 556 488 582 Previous years' inventory sold this year 81 51 113 138 93 Pre-sold last year, completed this year 133 191 322 197 276 Sold and completed this year 72 189 122 152 213 Revenue (m) 41,340 41,149 45,549 57,562 44,905 Previous year's inventory sold this year 7,507 8,356 16,586 19,531 14,886 Pre-sold last year, completed this year 18,000 11,638 21,126 22,997 16,145 Sold and completed this year 15,833 21,154 7,837 15,035 13,874

Gross contracted sales, including 100% associates, before sharing (m, reported currency) Total amount 43,699 51,691 54,389 58,539 95,892 Consolidated amount of subsidiaries after sharing 39,088 44,068 47,312 50,597 83,286

Breakdown of booked sales (Rmb/sqm) Average selling price, after sharing 123,683 81,543 70,028 100,866 65,982 Average construction cost, after sharing 23,471 19,052 16,373 26,794 17,731 Average land cost, after sharing 30,269 20,357 17,956 28,628 19,114 Source: Company data, Macquarie Research, August 2016

4 August 2016 12 Macquarie Research Sun Hung Kai Properties

Fig 27 End-16E land bank breakdown by city Fig 28 End-16E land bank breakdown by city

000 sqm % of total

Hong Kong 2,676 22% Foshan 1,140 9% Guangzhou 939 8% Hong Kong Chengdu 565 5% 22% Dongguan 393 3% Investment properties Others 475 4% Foshan 49% Investment properties 5,895 49% 9% Total 12,083 100% Guangzhou 8% The company has projects spread over 10 cities. In terms of GFA, Hong Dongguan Chengdu Kong has the largest land bank, accounting for 22% of total GFA, followed 3% 5% by Foshan, Guangzhou, Chengdu and Dongguan. Tier-one cities, including HK and Macau, contribute 30% of GFA while tier-two cities account for 5%. Source: Company data, Macquarie Research, August 2016 Source: Company data, Macquarie Research, August 2016

Fig 29 End-FY16E GAV breakdown by city Fig 30 End-16E GAV breakdown by city

RMB m % of total

Hong Kong 125,684 24% Shanghai 6,881 1% Hong Kong Shanghai 24% 1% Guangzhou 5,246 1% Foshan 4,162 1% Chengdu 1,903 0% Guangzhou Others 4,049 1% 1% Investment properties 378,019 72% Chengdu Total 525,944 100% Investment properties 0% 72% Foshan We estimate end-16 GAV of Hong Kong accounts for 24% of the value, 1% followed by Shanghai, Guangzhou, Foshan and Chengdu. Tier-one cities, including HK and Macau, contribute 24% of value while tier-two and tier- three cities account for 1% and 73%.

Source: Company data, Macquarie Research, August 2016 Source: Company data, Macquarie Research, August 2016

Fig 31 SHKP property development exposure by city Tier-1 cities Tier-2 cities Tier-3 cities Others Total BJ SH GZ SZ HK Singapore+ Macau

Revenue – 2016E 0% 3% 2% 0% 63% 0% 0% 0% 32% 100% Revenue – 2017E 0% 1% 1% 0% 63% 0% 1% 2% 33% 100% Revenue – 2018E 0% 7% 5% 0% 53% 0% 2% 2% 31% 100% GAV – 2016E 0% 1% 1% 0% 24% 0% 1% 1% 72% 100% GAV – 2017E 0% 1% 1% 0% 22% 0% 1% 1% 74% 100% GFA – 2016E 0% 1% 8% 0% 22% 0% 6% 14% 49% 100% GFA – 2017E 0% 1% 7% 0% 21% 0% 5% 14% 51% 100% Source: Company data, Macquarie Research, August 2016

4 August 2016 13 Macquarie Research Sun Hung Kai Properties

Fig 32 Major revenue contribution by development properties in coming years (HK$m) Revenue City 2016F 2017F 2018F 2019F 2020F

Ultima Homantin 13,962 2,403 1,947 2,533 1,364 Century Link Tung Chung 10,109 2,831 0 0 0 The Wings IIIA Tseung Kwan O 7,682 0 0 0 0 Imperial Kennedy Kennedy Town 1,992 0 0 0 0 Park Vista Yuen Long 1,592 5,587 0 7,105 7,105 Grand YOHO Yuen Long 0 6,164 2,055 10,742 0 Victoria Harbour North Point 0 4,788 2,052 5,515 0 The Wings IIIB Tseung Kwan O 0 2,562 0 0 0 One Harbour Square Kwun Tong 0 2,491 2,491 1,245 0 Twin Regency Yuen Long 0 2,161 0 0 0 Nam Cheong Station Project Nam Cheong 0 0 10,410 10,410 9,188 Ocean Wings Tseung Kwan O 0 0 5,764 96 0 Arch Shanghai 1,040 0 4,246 0 3,397 Lime Gala Island East 0 2,028 2,028 0 0 Forest Hills Guangzhou 530 526 2,011 526 1,485 LOHAS Park Tseung Kwan O 0 0 0 6,270 1,568 Stubbs Road Project Mid-Levels 0 0 0 3,998 2,665 King Sau Lane Tuen Mun 0 0 0 3,082 0 Lake Geneve Suzhou 0 0 1,042 1,305 1,305 Shouson Peak Peak 547 831 831 831 831 Shap Sze Heung Sai Kung 0 0 0 0 5,042 18-20 Caine Road Mid-Levels 0 0 0 0 3,258 Whitehead project Ma On Shan 0 0 0 0 2,423 Ha Ko Po Tsuen Yuen Long 0 0 0 0 1,037 Park Royale Guangzhou 208 0 956 0 835 Others 3,678 8,778 9,717 3,903 3,403 Total 41,340 41,149 45,549 57,562 44,906 Source: Company data, Macquarie Research, August 2016

Fig 33 Major gross contracted sale contribution in coming years (HK$m) Contracted sale 2016F 2017F 2018F 2019F 2020F

Ultima Homantin 11,912 2,403 1,947 2,533 1,364 Century Link Tung Chung 5,953 0 0 0 0 Ocean Wings Tseung Kwan O 5,214 646 0 0 0 Park Vista Yuen Long 3,076 4,103 0 7,105 7,105 Twin Regency Yuen Long 1,641 520 0 0 0 Nam Cheong Station Project Nam Cheong 0 7,670 10,958 10,058 2,902 Grand YOHO Yuen Long 0 6,164 8,077 4,720 0 Victoria Harbour North Point 0 4,788 7,567 0 0 One Harbour Square Kwun Tong 0 2,491 2,491 1,245 0 Lime Gala Island East 0 2,028 2,028 0 0 King Sau Lane Tuen Mun 0 0 2,466 616 0 Arch Shanghai 1,465 1,698 2,123 1,698 1,698 TODTOWN Shanghai 0 0 1,719 2,292 2,292 Forest Hills Guangzhou 530 1,268 1,268 1,268 742 KCC Kwai Chung 234 1,168 1,168 701 0 LOHAS Park Tseung Kwan O 0 0 0 8,957 2,239 Stubbs Road Project Mid-Levels 0 0 0 3,998 2,665 18-20 Caine Road Mid-Levels 0 0 0 1,955 1,303 Whitehead project Ma On Shan 0 0 0 1,817 1,936 Oriental Bund Foshan 654 1,116 1,098 1,197 1,580 Yuen Long West Rail station Yuen Long 0 0 0 0 10,474 Shap Sze Heung Sai Kung 0 0 0 0 10,085 98 How Ming Street Kwun Tong 0 0 0 0 6,877 Pak Shek Kok - Fo Chun Road Tai Po 0 0 0 0 6,352 Tin Shui Wai Area 112 Tin Shui Wai 0 0 0 0 6,267 Others 11,864 16,042 10,892 8,231 30,009 Total 42,542 52,106 53,803 58,392 95,892 Source: Company data, Macquarie Research, August 2016

4 August 2016 14

4 August 2016 August 4 Research Macquarie Fig 34 Summary of development properties (HK$m) – 2016E

Own Time of Cost^ of Current GFA sold During the year Projected Attributable free cash flows Disc Gross asset value Development properties City (%) GFA* Sales Delivery Land Const. Price^ margin year-end Revenue Asso 2016 2017 2018 2019 2020 2021 2022 2023 2024 Rate 2016 2017 2018

Ultima P2 Homantin/HK 100% 39 Mar 16 Jun 16 13,933 6,522 27,100 25% 80% 9,093 - 6,681 1,534 (48) ------5.5% 1,449 (47) - The Wings IIIA (Residential, Area 66A) Tseung Kwan 100% 58 Aug 14 Mar 16 4,479 3,804 12,300 33% 100% 7,682 - (384) (14) ------5.5% (14) - - O/HK Century Link (Residential) P1 Tung 100% 65 Dec 14 Jan 16 3,092 3,804 10,400 34% 100% 7,278 - (465) (11) ------5.5% (11) - - Chung/HK Ultima (247 apartments) P1A Homantin/HK 100% 16 Jun 15 Sep 15 13,933 6,522 30,000 32% 95% 4,869 - 2,121 100 (8) ------5.5% 90 (8) - Century Link (Residential) P2A Tung 100% 23 Aug 15 Jun 16 3,092 3,804 11,500 40% 100% 2,831 - 1,991 (132) ------5.5% (129) - - Chung/HK MIXc (Serviced Apt. CROWN 悦玺) Hangzhou 40% 94 Sep 13 Sep 15 6,740 8,000 24,000 39% 84% - 201 98 113 (30) ------6.5% 83 (29) - Imperial Kennedy (Residential) Kennedy 92% 9 Nov 13 Mar 16 6,522 4,348 22,000 51% 100% 1,992 - 184 (20) ------5.5% (20) - - Town/HK Park Vista (Residential) P1A Yuen 100% 21 Dec 15 Jun 15 3,134 3,804 11,000 37% 65% 1,592 - 1,279 590 (33) ------5.5% 544 (32) - Long/HK *Riviera (Office/SA) P3b Guangzhou 33% 57 Sep 15 Sep 15 9,890 6,000 55,000 71% 40% - 107 275 265 95 (37) (12) - - - - 6.3% 302 48 (47) Oriental Bund (Residential 泷景花园) Foshan 50% 130 Mar 14 Sep 15 2,960 4,000 7,500 7% 100% - 3 (17) ------6.3% - - - P1 50 Stanley Village Road Island 100% 3 Mar 15 Mar 12 15,554 6,522 46,000 52% 70% 1,078 - 862 (47) 351 (27) - - - - - 5.5% 254 317 (26) South/HK Arch P1 Shanghai 100% 50 Mar 12 Sep 13 20,230 20,000 115,000 65% 100% 1,040 - 499 (212) ------6.3% (206) - - Taihu International Community Wuxi 40% 143 Sep 14 Sep 14 3,630 4,000 12,000 36% 55% - 37 255 269 (32) ------6.5% 231 (31) - (Residential) P5 The Cullinan (Diamond Sky) Yau Tsim 100% 14 Mar 15 Jun 09 5,492 0 25,000 78% 35% 734 - 536 535 533 533 (74) - - - - 5.5% 1,418 946 451 Mong/HK ICC (天玺, 64 units) Shanghai 100% 20 Jun 15 Sep 13 11,960 15,000 90,000 70% 40% 666 - 441 331 331 (161) - - - - - 6.3% 485 174 (156) Shouson Peak (relaunched) P4 Peak/HK 100% 7 Nov 14 Mar 12 10,286 5,435 69,000 77% 20% 547 - 386 614 586 586 586 586 (81) - - 5.5% 2,536 2,046 1,557 Zhijiang Foothill Residence (JV SHKP Hangzhou 40% 124 Sep 14 Sep 14 11,120 4,000 16,760 10% 36% - (11) 165 262 266 11 - - - - - 6.5% 504 267 10 之江九里) P2 Forest Hills (峻林, Residential) P1 Guangzhou 70% 86 Dec 12 Mar 15 5,200 8,000 37,000 64% 100% 530 - 203 (75) ------6.3% (73) - - Riva (48 villas, Residential) Yuen 100% 9 May 13 Sep 13 3,375 3,804 18,000 60% 76% 416 - 303 286 (30) ------5.5% 251 (29) - Long/HK Oriental Bund (Retail) P1 Foshan 50% 17 Apr 14 Oct 15 2,960 8,000 20,000 45% 100% - 49 (9) ------6.3% - - - ICC-Sirius (Residential 1C) P3 Chengdu 40% 44 Mar 16 Mar 15 3,660 5,000 12,000 28% 60% - 12 110 71 (1) ------6.3% 68 (1) - *Riviera (Office, Top Plaza 天盈广场) Guangzhou 33% 60 Sep 13 Mar 15 9,890 7,000 50,000 66% 100% - 34 (16) (21) (2) ------6.3% (22) (2) - P2 KCC (Office) P1B Kwai 100% 13 Sep 14 Sep 08 716 2,717 8,300 59% 40% 234 - 172 172 172 172 (16) - - - - 5.5% 462 311 152 Chung/HK Park Royale (Shiling) P1B Guangzhou 100% 100 Mar 14 Sep 14 1,500 3,500 8,500 41% 100% 208 - 125 (15) ------6.3% (15) - - Deauville (星岸, 7 villas) Tuen Mun/HK 100% 2 Oct 14 Mar 14 3,899 5,435 32,000 71% 40% 149 - 107 329 (38) ------5.5% 285 (37) - Others 401 (9) Sub-total 41,340 422 Source: Company data, Macquarie Research, August 2016; *Refers to ‘000 sqm. ^ China: Rmb/sqm. HK: HK$/sqft/ # reported currency mn

Sun Hung Kai Properties Hung Kai Sun

4 August 2016 August 4 Research Macquarie Fig 35 Summary of development properties (HK$m) – 2017E

2017 Grand YOHO P1 Yuen Long/HK 100% 67 Sep 16 Jul 16 2,837 3,804 12,000 45% 0% 6,164 - (1,006 4,867 1,352 (100) - - - - - 5.5% 5,897 1,224 (97) ) Victoria Harbour (Residential) P1 North Point/HK 100% 27 Dec 16 Jun 17 10,743 4,348 25,000 40% 0% 4,788 - (307) 3,541 1,453 (84) - - - - - 5.5% 4,713 1,336 (82) Park Vista (Park YOHO P1B & 1C) P2 Yuen Long/HK 100% 42 May 16 Jul 16 3,134 3,804 11,000 37% 30% 4,772 - 625 2,537 (127) ------5.5% 2,352 (124) - Century Link (Residential) P2B Tung Chung/HK 100% 23 Aug 15 Jul 16 3,092 3,804 11,500 40% 100% 2,831 - 1,999 (156) ------5.5% (152) - - The Wings IIIB (Residential, Area 66C1) Tseung Kwan 100% 19 Oct 14 Oct 16 4,512 3,804 12,500 33% 100% 2,562 - (180) (69) ------5.5% (67) - - O/HK One Harbour Square (181 Hoi Bun Road) Kwun Tong/HK 64% 45 Sep 16 Jun 17 4,083 3,804 13,000 39% 0% 2,491 - (309) 979 1,216 573 (35) - - - - 5.5% 2,546 1,682 525 P2 Twin Regency Yuen Long/HK 100% 19 Feb 16 Feb 17 3,603 3,804 10,500 29% 75% 2,161 - 1,092 217 (16) ------5.5% 196 (16) - Ultima P2 Homantin/HK 100% 39 Mar 16 Jun 16 13,933 6,522 27,100 25% 80% 2,160 - 6,681 1,534 (48) ------5.5% 1,449 (47) - Lime Gala (Residential 形薈 650 units) Island East/HK 92% 26 Sep 16 Jun 17 5,292 4,348 15,000 36% 0% 2,028 - (487) 1,013 1,433 (66) - - - - - 5.5% 2,251 1,335 (64) *Riviera (Office/SA) P3b Guangzhou 33% 57 Sep 15 Sep 15 9,890 6,000 55,000 71% 40% - 134 275 265 95 (37) (12) - - - - 6.3% 302 48 (47) King's Hill (Residential) Western/HK 92% 6 Dec 15 Jun 17 5,435 4,348 20,000 51% 85% 1,379 - 754 (40) (11) ------5.5% (49) (11) - Oriental Bund (Residential) P2 Foshan 50% 113 Mar 16 Mar 17 2,960 4,000 9,000 23% 50% - 90 129 150 (7) ------6.3% 139 (7) - Taihu International Community Wuxi 40% 143 Sep 14 Sep 14 3,630 4,000 12,000 36% 55% - 41 255 269 (32) ------6.5% 231 (31) - (Residential) P5 KCC (Office) P2 Kwai Chung/HK 100% 26 Jun 17 Sep 08 716 2,717 8,300 59% 0% 935 - - 751 689 313 (31) - - - - 5.5% 1,614 933 276 MIXc (Office for sale 180m) P1 Hangzhou 40% 99 Mar 17 Jun 15 6,740 6,000 20,000 36% 0% - 7 - 276 254 116 (11) - - - - 6.5% 588 342 102 W668 (I/O) Cheung Sha 100% 9 Apr 16 Dec 16 543 3,261 9,500 60% 90% 912 - 588 (25) (7) ------5.5% (30) (7) - Wan/HK Zhijiang Foothill Residence (JV SHKP Hangzhou 40% 124 Sep 14 Sep 14 11,120 4,000 16,760 10% 36% - (17) 165 262 266 11 - - - - - 6.5% 504 267 10 之江九里) P2 Shouson Peak (relaunched) P4 Peak/HK 100% 7 Nov 14 Mar 12 10,286 5,435 69,000 77% 20% 831 - 386 614 586 586 586 586 (81) - - 5.5% 2,536 2,046 1,557 Park Vista (Residential) P1A Yuen Long/HK 100% 21 Dec 15 Jun 15 3,134 3,804 11,000 37% 65% 815 - 1,279 590 (33) ------5.5% 544 (32) - The Cullinan (Diamond Sky) Yau Tsim 100% 14 Mar 15 Jun 09 5,492 0 25,000 78% 35% 756 - 536 535 533 533 (74) - - - - 5.5% 1,418 946 451 Mong/HK Twelve Peaks (remaining 8 houses) Peak/HK 100% 3 Sep 16 Mar 12 35,974 6,522 113,000 62% 0% 729 - - 585 532 532 532 532 (53) - - 5.5% 2,344 1,873 1,430 ICC (天玺, 64 units) Shanghai 100% 20 Jun 15 Sep 13 11,960 15,000 90,000 70% 40% 666 - 441 331 331 (161) - - - - - 6.3% 485 174 (156) St Mortiz (雲端, Kau To Zone 56A-B2, Sha Tin/HK 100% 11 Mar 17 Mar 17 12,094 6,522 28,000 34% 0% 625 - (219) 338 482 482 482 482 (19) - - 5.5% 1,959 1,720 1,320 59 units) Grand Waterfront (Residential 新鸿基· Dongguan 100% 49 Sep 15 Sep 16 970 5,000 9,500 37% 50% 597 - 98 164 (26) ------6.3% 136 (25) - 珑汇) P1 Forest Hills (Linhe Project, Office) P2 Guangzhou 70% 34 Mar 15 Mar 17 5,200 8,000 40,000 67% 0% 526 - (63) 225 192 192 (80) - - - - 6.3% 493 293 113 Others 2,424 16 Sub-total 41,149 271 Source: Company data, Macquarie Research, August 2016; *Refers to ‘000 sqm. ^ China: Rmb/sqm. HK: HK$/sqft/ # reported currency mn

Sun Hung Kai Properties Hung Kai Sun

Macquarie Research Sun Hung Kai Properties

Fig 36 Price, PE multiples and NAV discounts of 23 property companies under coverage PE (x) PB (x) NAV NAV vs EBITDA margin Net gearing Ticker Company TP Price Rating 2016F 2017F mkt value** 2016F 2017F 2015 2016F

Developers 16 HK Sun Hung Kai 132.00 110.60 OP 12.8 12.3 0.64 173.53 -36% 34% 36% 11% 7% 83 HK Sino Land 11.49 14.08 N 15.9 15.2 0.69 19.44 -30% 39% 44% -12% -20% 17 HK New World 9.05 9.14 OP 12.5 12.1 0.41 16.50 -46% 20% 20% 32% 39% 683 HK Kerry 19.17 21.35 N 8.1 8.2 0.36 63.68 -67% 34% 24% 32% 25% 173 HK K Wah 4.56 4.01 OP 5.0 4.7 0.47 10.53 -63% 32% 45% 38% 6% 12 HK Henderson 43.06 46.55 N 14.7 13.4 0.58 66.30 -32% 32% 37% 15% 11% 20 HK Wheelock 41.20 41.40 OP 7.0 8.7 0.39 68.27 -41% 36% 33% 39% 36% 1113 HK CK Property 66.34 55.90 OP 10.9 11.1 0.75 88.67 -39% 41% 37% 6% -5% Median 11.6 11.6 0.53 -40% 34% 36% 24% 9%

Landlords 101 HK Hang Lung 18.49 17.04 OP 14.5 14.1 0.56 20.54 -20% 72% 72% 1% 5% 14 HK Hysan 36.00 35.90 OP 15.6 15.3 0.54 42.40 -15% 89% 88% 5% 6% 1972 HK Swire Properties 24.10 21.60 OP 16.9 18.5 0.56 26.80 -21% 58% 64% 15% 13% 19 HK Swire A 81.20 92.15 N 13.9 13.4 0.63 94.90 -5% 20% 20% 27% 26% 4 HK Wharf 47.00 53.90 OP 11.7 10.4 0.49 67.20 -24% 41% 38% 15% 11% 41 HK Great Eagle 24.00 35.95 N 13.8 13.2 0.41 53.30 -35% 36% 36% 38% 30% Median 14.2 13.7 0.55 -21% 49% 51% 15% 12%

REITs 405 HK Yuexiu REIT 4.66 4.70 OP 25.6 25.7 1.10 5.18 -10% 73% 74% 77% 125% 2778 HK Champion 4.38 4.55 OP 19.7 18.1 0.58 4.61 -2% 71% 73% 31% 30% 823 HK LINK 59.70 56.80 OP 26.1 24.2 0.95 59.70 -7% 94% 94% 12% 21% 87001 HK Hui Xian REIT 3.23 3.44 OP 12.2 11.6 0.67 3.59 -4% 63% 64% 12% 17% FRT SP Fortune REIT 7.43 10.06 N 21.3 22.0 0.78 7.43 35% 92% 92% 43% 42% HKL SP Hongkong Land 8.40 6.25 OP 15.9 14.7 0.49 8.40 -27% 44% 51% 8% 6% MAGIC SP Mapletree Gr China 1.10 1.06 OP 14.4 14.4 0.92 1.10 -6% 84% 76% 57% 65% Median 19.7 18.1 0.78 -6% 73% 74% 31% 30%

Real estate agent 1200 HK Midland 2.64 2.41 N (11.7) (778.8) 1.42 2.64 -11% -4% 1% -93% -96%

Logistics 636 HK Kerry Logistics 13.14 11.14 OP 16.2 15.0 1.14 13.14 -17% 12% 12% 12% 7% Source: Bloomberg, Macquarie Research, August 2016; Closing as of 3 August 2016

4 August 2016 17 Macquarie Research Sun Hung Kai Properties

Macquarie Quant View

The quant model currently holds a strong positive view on Sun Hung Kai Attractive Displays where the Properties. The strongest style exposure is Earnings Momentum, indicating company’s ranked based on this stock has received earnings upgrades and is well liked by sell side s

l the fundamental consensus a analysts. The weakest style exposure is Profitability, indicating this stock is t

n Price Target and Macquarie’s not efficiently converting investments to earnings; proxied by ratios like e Quantitative Alpha model. ROE or ROA. m a

d Two rankings: Local market n

14/1096 u (Hong Kong) and Global F sector (Real Estate) Global rank in

Real Estate Quant % of BUY recommendations 91% (10/11) Local market rank Global sector rank Number of Price Target downgrades 0 Number of Price Target upgrades 5

Macquarie Alpha Model ranking Factors driving the Alpha Model A list of comparable companies and their Macquarie Alpha model score For the comparable firms this chart shows the key underlying styles and their (higher is better). contribution to the current overall Alpha score.

Sun Hung Kai Properties 1.7 Sun Hung Kai Properties

Wheelock and Co 1.1 Wheelock and Co

Sino Land 1.0 Sino Land

Henderson Land 0.9 Henderson Land

New World Development 0.7 New World Development

Kerry Properties 0.3 Kerry Properties

Cheung Kong Property 0.0 Cheung Kong Property

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 Valuations Growth Profitability Earnings Price Quality Momentum Momentum

Macquarie Earnings Sentiment Indicator Drivers of Stock Return The Macquarie Sentiment Indicator is an enhanced earnings revisions Breakdown of 1 year total return (local currency) into returns from dividends, changes signal that favours analysts who have more timely and higher conviction in forward earnings estimates and the resulting change in earnings multiple. revisions. Current score shown below.

Sun Hung Kai Properties Sun Hung Kai Properties 0.2 Wheelock and Co Wheelock and Co 0.9 Sino Land Sino Land -0.2 Henderson Land Henderson Land 0.0 New World Development New World Development 0.7

Kerry Properties 0.4 Kerry Properties

Cheung Kong Property 0.5 Cheung Kong Property

-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 -40% -30% -20% -10% 0% 10% 20% 30% 40% Dividend Return Multiple Return Earnings Outlook 1Yr Total Return

What drove this Company in the last 5 years How it looks on the Alpha model Which factor score has had the greatest correlation with the company’s A more granular view of the underlying style scores that drive the alpha (higher is returns over the last 5 years. better) and the percentile rank relative to the sector and market. ⇐ Negatives Positives ⇒ Normalized Percentile relative Percentile relative Price to Earnings LTM 44% Score to sector(/1096) to market(/717) Alpha Model Score 1.70 EV/EBITDA LTM 39% Valuation -0.12 Dividend Yield LTM 37% Growth -0.17 Dividend Yield FY0 35% Profitability -0.29 Earnings Momentum 0.47 Earnings Certainty -18% Price Momentum -0.01 Turnover (USD) 20 Day -18% Quality -0.01 Capital & Funding 0.02 Momentum 12 Month -23% Liquidity 2.20 Earnings Stability -27% Risk 0.09 Technicals & Trading 0.01 -60% -40% -20% 0% 20% 40% 60% 0 50 100 0 50 100 0 0 1 1

Source (all charts): FactSet, Thomson Reuters, and Macquarie Research. For more details on the Macquarie Alpha model or for more customised analysis and screens, please contact the Macquarie Global Quantitative/Custom Products Group ([email protected])

4 August 2016 18 Macquarie Research Sun Hung Kai Properties

Sun Hung Kai Properties (16 HK, Outperform, Target Price: HK$132.00)

Interim Results 1H/16A 2H/16E 1H/17E 2H/17E Profit & Loss 2015A 2016E 2017E 2018E

Net Property Income m 10,581 9,304 10,024 10,024 Net Property Income m 20,189 19,885 20,048 20,605 Development Income m 8,619 32,721 17,069 24,080 Development Income m 17,676 41,340 41,149 45,549 Other Revenue m 15,702 11,951 14,191 14,191 Other Revenue m 28,918 27,653 28,382 28,440 Total Revenue m 34,902 53,976 41,284 48,295 Total Revenue m 66,783 88,878 89,579 94,594 Management Fees m 0 0 0 0 Management Fees m 0 0 0 0 Other Expenses m 0 0 0 0 Other Expenses m 0 0 0 0 EBITDA m 12,218 18,025 12,073 20,312 EBITDA m 24,750 30,243 32,385 35,986 Dep & Amortisation m 1,026 1,026 1,068 1,068 Dep & Amortisation m 1,972 2,052 2,137 2,232 EBIT m 11,192 16,998 11,005 19,244 EBIT m 22,778 28,190 30,249 33,755 Net Interest Income m -1,034 -1,145 -996 -996 Net Interest Income m -2,180 -2,179 -1,993 -1,849 Associates m 2,023 1,372 1,651 1,704 Associates m 5,550 3,395 3,355 3,283 Exceptionals m 5,388 0 0 0 Exceptionals m 10,987 5,388 0 0 Other Pre-Tax Income m 0 0 0 0 Other Pre-Tax Income m 0 0 0 0 Pre-Tax Profit m 17,569 17,226 11,660 19,951 Pre-Tax Profit m 37,135 34,795 31,611 35,189 Tax Expense m -2,478 -3,070 -1,739 -3,243 Tax Expense m -4,771 -5,548 -4,982 -6,689 Net Profit m 15,091 14,155 9,921 16,708 Net Profit m 32,364 29,246 26,629 28,500 Minority Interests m -367 201 -65 -373 Minority Interests m -1,282 -166 -438 -724

Reported Earnings m 14,819 14,452 9,856 16,335 Reported Earnings m 31,082 29,271 26,191 28,541 Adjusted Earnings m 9,298 15,284 9,856 16,335 Adjusted Earnings m 19,825 24,582 26,191 27,775

EPS (rep) 5.14 5.11 3.37 5.59 EPS (rep) 11.15 10.24 8.97 9.77 EPS (adj) 3.22 5.40 3.37 5.59 EPS (adj) 7.11 8.62 8.97 9.51 EPS Growth yoy (adj) % 5.7 32.9 4.7 3.5 EPS Growth (adj) % -10.9 21.3 4.0 6.0 PE (rep) x 9.9 10.8 12.3 11.3 PE (adj) x 15.6 12.8 12.3 11.6

EBITDA Margins % 35.0 33.4 29.2 42.1 Total DPS 3.36 3.68 3.68 3.68 EBIT Margins % 32.1 31.5 26.7 39.8 Total Div Yield % 3.0 3.3 3.3 3.3 Earnings Split % 37.8 62.2 37.6 62.4 Basic Shares Outstanding m 2,804 2,895 2,895 2,895 Revenue Growth % 8.8 55.6 18.3 -10.5 Diluted Shares Outstanding m 2,787 2,858 2,921 2,921 EBIT Growth % 7.1 37.8 -1.7 13.2

Profit & Loss Ratios 2015A 2016E 2017E 2018E Cashflow Analysis 2015A 2016E 2017E 2018E

Revenue Growth % -11.1 33.1 0.8 5.6 EBITDA m 24,750 30,243 32,385 35,986 EBITDA Growth % -7.9 22.2 7.1 11.1 Tax Paid m 3,700 3,025 2,080 3,351 EBIT Growth % -8.8 23.8 7.3 11.6 Chg in Working Capital m 8,202 -3,256 5,881 -5,181 EBITDA Margins % 37.1 34.0 36.2 38.0 Net Interest Paid m -2,519 -2,627 -2,428 -2,278 EBIT Margins % 34.1 31.7 33.8 35.7 Other m 5,550 3,395 3,355 3,283 Net Profit Margins % 29.7 27.7 29.2 29.4 Operating Cashflow m 39,683 30,781 41,273 35,162 Payout Ratio % 47.2 42.7 41.0 38.7 Acquisitions m -23,741 -2,924 -3,257 -4,088 EV/EBITDA x 12.1 11.2 10.5 9.6 Capex m 0 0 0 0 EV/EBIT x 12.9 11.9 11.2 10.2 Asset Sales m -4,397 -3,096 -3,230 -3,468 Other m 525 0 0 0 Balance Sheet Ratios Investing Cashflow m -27,613 -6,020 -6,488 -7,556 ROE % 4.6 5.3 5.4 5.6 Dividend (Ordinary) m -9,022 -9,392 -10,654 -10,654 ROA % 3.9 4.6 4.8 5.1 Equity Raised m 14,987 1,901 0 0 ROIC % 4.1 4.7 5.0 5.4 Debt Movements m -599 0 0 0 Net Debt/Equity % 11.1 7.0 2.0 -1.2 Other m -3,403 -215 -381 -1,156 Interest Cover x 10.4 12.9 15.2 18.3 Financing Cashflow m 1,963 -7,706 -11,035 -11,810 Price/Book x 0.7 0.7 0.7 0.6 Book Value per Share 160.9 163.3 168.7 174.9 Net Chg in Cash/Debt m 14,033 17,054 23,750 15,796

Free Cashflow m 39,683 30,781 41,273 35,162

Balance Sheet 2015A 2016E 2017E 2018E

Cash m 32,561 49,615 73,365 89,161 Receivables m 20,690 20,690 20,690 20,690 Inventories m 149,750 148,721 141,542 144,031 Investments m 309,205 312,882 316,246 319,561 Fixed Assets m 25,915 26,959 28,053 29,289 Intangibles m 4,090 4,090 4,090 4,090 Other Assets m 61,899 61,337 61,230 62,768 Total Assets m 604,110 624,294 645,216 669,590 Payables m 40,013 37,717 40,710 42,584 Short Term Debt m 10,816 15,816 15,816 15,816 Long Term Debt m 72,316 67,316 67,316 67,316 Provisions m 24,147 24,896 27,232 32,276 Other Liabilities m 0 0 0 0 Total Liabilities m 147,292 145,745 151,074 157,992 Shareholders' Funds m 451,026 472,806 488,343 506,231 Minority Interests m 5,792 5,743 5,799 5,367 Total S/H Equity m 456,818 478,549 494,142 511,598 Total Liab & S/H Funds m 604,110 624,294 645,216 669,590

All figures in HKD unless noted. Source: Company data, Macquarie Research, August 2016

4 August 2016 19 Macquarie Research Sun Hung Kai Properties Important disclosures: Recommendation definitions Volatility index definition* Financial definitions Macquarie - Australia/New Zealand This is calculated from the volatility of historical All "Adjusted" data items have had the following Outperform – return >3% in excess of benchmark return price movements. adjustments made: Neutral – return within 3% of benchmark return Added back: goodwill amortisation, provision for Underperform – return >3% below benchmark return Very high–highest risk – Stock should be catastrophe reserves, IFRS derivatives & hedging, expected to move up or down 60–100% in a year IFRS impairments & IFRS interest expense Benchmark return is determined by long term nominal – investors should be aware this stock is highly Excluded: non recurring items, asset revals, property GDP growth plus 12 month forward market dividend speculative. revals, appraisal value uplift, preference dividends & yield minority interests Macquarie – Asia/Europe High – stock should be expected to move up or Outperform – expected return >+10% down at least 40–60% in a year – investors should EPS = adjusted net profit / efpowa* Neutral – expected return from -10% to +10% be aware this stock could be speculative. ROA = adjusted ebit / average total assets Underperform – expected return <-10% ROA Banks/Insurance = adjusted net profit /average Medium – stock should be expected to move up total assets Macquarie – South Africa or down at least 30–40% in a year. ROE = adjusted net profit / average shareholders funds Outperform – expected return >+10% Gross cashflow = adjusted net profit + depreciation Neutral – expected return from -10% to +10% Low–medium – stock should be expected to *equivalent fully paid ordinary weighted average Underperform – expected return <-10% move up or down at least 25–30% in a year. number of shares Macquarie - Canada Outperform – return >5% in excess of benchmark return Low – stock should be expected to move up or All Reported numbers for Australian/NZ listed stocks Neutral – return within 5% of benchmark return down at least 15–25% in a year. are modelled under IFRS (International Financial Underperform – return >5% below benchmark return * Applicable to Asia/Australian/NZ/Canada stocks Reporting Standards). only Macquarie - USA Outperform (Buy) – return >5% in excess of Russell Recommendations – 12 months 3000 index return Note: Quant recommendations may differ from Neutral (Hold) – return within 5% of Russell 3000 index Fundamental Analyst recommendations return Underperform (Sell)– return >5% below Russell 3000 index return

Recommendation proportions – For quarter ending 30 June 2016 AU/NZ Asia RSA USA CA EUR Outperform 45.17% 56.00% 36.36% 43.16% 63.39% 45.91% (for global coverage by Macquarie, 6.27% of stocks followed are investment banking clients) Neutral 36.21% 28.59% 40.26% 50.38% 29.46% 36.96% (for global coverage by Macquarie, 6.33% of stocks followed are investment banking clients) Underperform 18.62% 15.41% 23.38% 6.46% 7.14% 17.12% (for global coverage by Macquarie, 5.38% of stocks followed are investment banking clients)

Company-specific disclosures:

Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/research/disclosures.

Date Stock Code (BBG code) Recommendation Target Price 16-Jun-2016 16 HK Outperform HK$131.24 04-May-2016 16 HK Outperform HK$128.58 27-Feb-2016 16 HK Outperform HK$127.72 19-Nov-2015 16 HK Outperform HK$137.80 11-Sep-2015 16 HK Outperform HK$144.77 12-Jun-2015 16 HK Outperform HK$149.36 09-Mar-2015 16 HK Outperform HK$136.52 13-Sep-2014 16 HK Outperform HK$131.20 20-May-2014 16 HK Outperform HK$133.15 03-Mar-2014 16 HK Outperform HK$133.85 20-Dec-2013 16 HK Outperform HK$118.72 25-Oct-2013 16 HK Outperform HK$118.84 13-Sep-2013 16 HK Neutral HK$96.88 09-Sep-2013 16 HK Neutral HK$98.57

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4 August 2016 21

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Polina Diyachkina (Asia, Japan) (813) 3512 7886 Erwin Sanft (China, Hong Kong) (852) 3922 1516 Amit Sinha (India) (9122) 6720 4085 Coria Chow (China) (852) 3922 1181 Peter Eadon-Clarke (Japan) (813) 3512 7850 Fransisca Widjaja (65) 6601 0847 Anna Park (Korea) (822) 3705 8669 Chan Hwang (Korea) (822) 3705 8643 (Indonesia, Singapore) Stanley Liong (Indonesia) (6221) 2598 8381 Jeffrey Ohlweiler (Taiwan) (8862) 2734 7512 Hendy Soegiarto (Indonesia) (6221) 2598 8369 Inderjeetsingh Bhatia (India) (9122) 6720 4087 Karisa Magpayo (Philippines) (632) 857 0899 Technology Lyall Taylor (Indonesia) (6221) 2598 8489 Chalinee Congmuang (Thailand) (662) 694 7993 Damian Thong (Asia, Japan) (813) 3512 7877 Anand Pathmakanthan (Malaysia) (603) 2059 8833 Emerging Leaders George Chang (Japan) (813) 3512 7854 Gilbert Lopez (Philippines) (632) 857 0892 Daniel Kim (Korea) (822) 3705 8641 Conrad Werner (Singapore) (65) 6601 0182 Jake Lynch (Asia) (852) 3922 3583 Allen Chang (Greater China) (852) 3922 1136 Alastair Macdonald (Thailand) (662) 694 7753 Aditya Suresh (Asia) (852) 3922 1265 Jeffrey Ohlweiler (Greater China) (8862) 2734 7512 Timothy Lam (China, Hong Kong) (852) 3922 1086 Patrick Liao (Greater China) (8862) 2734 7515 Find our research at Mike Allen (Japan) (813) 3512 7859 Louis Cheng (Greater China) (8862) 2734 7526 Kwang Cho (Korea) (822) 3705 4953 Kaylin Tsai (Greater China) (8862) 2734 7523 Macquarie: www.macquarie.com.au/research Thomson: www.thomson.com/financial Corinne Jian (Taiwan) (8862) 2734 7522 Marcus Yang (Taiwan) (8862) 2734 7532 Reuters: www.knowledge.reuters.com Conrad Werner (ASEAN) (65) 6601 0182 Bloomberg: MAC GO Factset: http://www.factset.com/home.aspx CapitalIQ www.capitaliq.com Email [email protected] for access

Asia Sales Regional Heads of Sales Regional Heads of Sales cont’d Sales Trading cont’d Miki Edelman (Global) (1 212) 231 6121 Paul Colaco (San Francisco) (1 415) 762 5003 Suhaida Samsudin (Malaysia) (603) 2059 8888 Jeff Evans (Boston) (1 617) 598 2508 Amelia Mehta (Singapore) (65) 6601 0211 Michael Santos (Philippines) (632) 857 0813 Jeffrey Shiu (China, Hong Kong) (852) 3922 2061 Angus Kent (Thailand) (662) 694 7601 Chris Reale (New York) (1 212) 231 2555 Sandeep Bhatia (India) (9122) 6720 4101 Ben Musgrave (UK/Europe) (44 20) 3037 4882 Marc Rosa (New York) (1 212) 231 2555 Thomas Renz (Geneva) (41 22) 818 7712 Christina Lee (UK/Europe) (44 20) 3037 4873 Justin Morrison (Singapore) (65) 6601 0288 Daniel Clarke (Taiwan) (8862) 2734 7580 Riaz Hyder (Indonesia) (6221) 2598 8486 Sales Trading Nick Cant (Japan) (65) 6601 0210 Brendan Rake (Thailand) (662) 694 7707 John Jay Lee (Korea) (822) 3705 9988 Adam Zaki (Asia) (852) 3922 2002 Mike Keen (UK/Europe) (44 20) 3037 4905 Nik Hadi (Malaysia) (603) 2059 8888 Stanley Dunda (Indonesia) (6221) 515 1555 Eric Roles (New York) (1 212) 231 2559 Gino C Rojas (Philippines) (632) 857 0861

This publication was disseminated on 04 August 2016 at 09:31 UTC.