SHKP dividend: history, cash cover and yield
SHKP’s FY2026 annual dividend was HK$3.91 per share. In FY2022, dividends of HK$14,344 million exceeded free cash flow of HK$1,582 million, so cash coverage has not been consistent.
How much does SHKP pay in dividends?
SHKP cut its annual dividend by 24% in FY2024. For FY2026 it paid HK$0.98 per share at the interim stage and proposed HK$2.93 as the final payment, bringing the annual amount to HK$3.91 under a 40%–50% underlying-profit payout policy. Underlying profit excludes unrealised investment-property valuation changes but can include gains realised when properties are sold. It is therefore steadier than reported profit, but not necessarily pure recurring rent.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 7.39 | 6.65 | 6.57 | 8.25 | 8.82 |
| − Dividends paid, per share | 3.78 | 3.75 | 4.65 | 4.95 | 4.95 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
What this means. The two cash-flow figures are nearly the same because the value of shares given to employees as pay was only about one cent per share.
Is SHKP’s dividend covered by its cash?
Profit and cash are different. A developer may recognise a sale while land and construction bills fall due at another time. In FY2022, free cash flow was HK$1,582 million against dividends paid of HK$14,344 million, so the shortfall had to come from reserves, borrowing or other transactions. Dividends exceeded free cash flow again in FY2023 and FY2024.
The pattern changed in FY2025 and FY2026. More cash remained inside the business, and SHKP repaid substantially more debt than it issued. Acquisitions were a smaller cash use than businesses and assets sold, while there were no share buybacks or proceeds from new shares in the five years. Shareholders therefore received their direct cash return mainly through dividends.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 38,413 | 27,735 | 12,660 | 9,379 | 1,582 |
| − Dividends paid | 10,954 | 10,867 | 13,475 | 14,344 | 14,344 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 27,083 | 16,389 | |||
| − Debt repaid | 28,677 | 35,006 | 26,344 | 37,380 | 18,438 |
| Paid out, % of free cash flow | 28.5% | 39.2% | 106.4% | 152.9% | 906.7% |
What could change SHKP’s dividend?
Dividends are HK$3.91 per share in October 2027 in all cases. That combines the declared final payment with an assumed interim payment. The base path then rises to HK$4.00 and HK$4.10 as earnings recover and the payout reaches the upper end of the stated range. The bear path falls to HK$3.20 and HK$3.00 at the lower payout rate; the bull path reaches HK$4.30 and HK$4.60 with stronger earnings. The prior fall from HK$4.95 to HK$3.75 shows the risk.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 27,300 (23,500 / 29,000) | 28,300 (22,000 / 31,500) | 29,300 (23,000 / 33,500) |
| Dividends per share | 3.91 (3.91 / 3.91) | 4.00 (3.20 / 4.30) | 4.10 (3.00 / 4.60) |
| Net debt | 58,820 (72,261 / 50,258) | 54,587 (78,345 / 39,209) | 49,775 (79,559 / 26,291) |
What is SHKP’s dividend yield at today’s price?
The trend is mixed: FY2026 revenue grew 18.2%, while operating margin fell to 26.7%. Net debt fell to HK$66,767 million. Computed as cash from operations minus capital spending, SHKP’s real free cash flow per share reached HK$13.25 after a HK$23,554 million working-capital release. Diluted EPS was HK$7.39, below HK$8.82 in 2022. At HK$106.30, shares carry a 12.5% free cash flow yield. The dividend yield is 3.7%.