Sun Hung Kai profit rose 22% in 2020

It also marked the company’s transformation to an alternative investment platform from a securities house.

Sun Hung Kai & Co. Limited reported its profit attributable to owners climbed 22% to $2.54b in 2020, compared to $2.08b recorded in 2019.

"Despite the challenges posed by COVID-19, the results for the year reflect commendable overall performance and strong earnings in the investment management business,” said executive chairman Lee Seng Huang. “The company remained highly liquid and profitable, adopting a strategy of cautiously reducing risk in the first half, and was well-positioned for investment opportunities which arose during the second half of the year."

Basic earnings per shared increased 23% to 128.3 cents, whilst book value per share increased 12% to $11.4.

The board declared a second interim dividend of 14 cents per share for the year ended 31 December 2020, increasing the total dividend to 26 cents per share.

Further, the company posted a revenue of $4.05b from $4.21b in the previous year.

The investment management segment contributed $2.12b to the pre-tax profit, a 65% YOY increase.

Consumer finance brought in $1.23b, which is a 3% drop from 2019, whilst mortgage loan’s contribution rose 3% to $112.7m.

"The group is committed to delivering strong risk adjusted returns over the long term with sound governance and risk controls through all market conditions,” Lee said. “Against a backdrop of a disrupted work environment, we continue to develop our culture and systems to attract and retain top talent with a commitment to integrity, creativity and teamwork."

Lee added the group remains alert over the potential downside risks of asset prices not only because of the continuing impact of the pandemic, but also in light of the tension between China and the United States.