SUN HUNG KAI CO's investment portfolio and fund management work together, highlighting the advantages of the alternative investment platform

Since the beginning of this year, the Hang Seng Index has rebounded from a low of around 18,600 points, fluctuating upwards to reach a new high for the year, with a cumulative increase of 19.07% year-to-date. When measuring from the year's lowest to highest points, the volatility is nearly 30%, leading among various global assets.

Against the backdrop of a general recovery in the Asia-Pacific investment market, SUN HUNG KAI CO (00086) has also frequently received good news. Its three core business lines—credit business, investment management, and fund management—are working in synergy, showcasing the strong advantages of a diversified investment platform. The company's stock price has risen by about 30% year-to-date, deeply aligning with the structural opportunities in Hong Kong stocks and global capital allocation trends.

Investment portfolio reaps significant rewards, fund performance recognized by international authorities

According to Zhitong Finance APP, SUN HUNG KAI CO, as a leading alternative investment platform, has achieved steady development through its diversified business (covering credit, investment management, and fund management) across cycles. Among them, the investment management business demonstrates strong resilience due to its unique high-quality investment opportunity acquisition channels, globally diversified investment portfolio, and robust investment management style.

The investment management business consists of alternative investments, public markets, and real estate, with alternative investments being the largest segment, accounting for 74.2% by the end of 2024. In terms of investment performance, SUN HUNG KAI CO is expected to see value realization in both Hong Kong and U.S. stocks in 2025.

Recently, the maternal and infant enterprise SAINT BELLA (02508), in which SUN HUNG KAI CO invested, officially listed on the main board of the Hong Kong Stock Exchange, becoming the "first stock in global quality family care." On its first day of trading, SAINT BELLA's stock price opened higher, with an intraday increase of over 50%, and a total market capitalization exceeding HKD 6 billion.

According to the announcement, SAINT BELLA issued a total of 109 million shares, raising a total of HKD 722 million in its IPO, with a net amount of HKD 630 million. In this IPO, the subscription multiple for SAINT BELLA's public offering in Hong Kong reached as high as 193 times, fully demonstrating the market's optimism towards the company.

It is noteworthy that behind SAINT BELLA's high growth lies a qualitative change in new consumption logic. Female consumption is shifting from "family sacrifice" to "self-investment." Amid the wave of self-indulgent consumption, the high-end SAINT BELLA has built an unreplicable competitive barrier, validating SUN HUNG KAI CO's foresight in discovering potential enterprises in the new consumption track.

As the sole investor in SAINT BELLA's Series B round in 2020, SUN HUNG KAI CO has assisted this high-end maternal and infant care brand in transforming from a startup to a leading listed company. Currently, SAINT BELLA has established a "luxury baby honeymoon" service system covering over 80 locations in mainland China, Hong Kong, and overseas, and has integrated AI technology to create a maternal and infant elderly care ecosystem. The effectiveness of business expansion and technological integration is significant, and it is expected to continue providing long-term and considerable returns to shareholders in the future.

The investment in Jefferson Capital demonstrates SUN HUNG KAI CO's ability to layout across cycles. It is understood that Jefferson Capital is a leading player in the management of distressed consumer debt in the United States. In 2018, SUN HUNG KAI CO accurately captured the turning point in the U.S. consumer debt market and invested in it alongside J.C. Flowers. On June 26, 2025, Jefferson Capital was listed on NASDAQ, with its stock price soaring 23.6% on the first day, reaching a valuation of USD 1.2 billion There is no doubt that the investment in Jefferson Capital during its low period is backed by Sun Hung Kai & Co.'s precise positioning in the U.S. distressed debt management market. Credit business has always been a traditional stronghold for Sun Hung Kai & Co., with its subsidiary, Asia United Finance, rooted in the Hong Kong market for over 30 years, making it a leader in the unsecured loan market. The investment in Jefferson Capital fully demonstrates the company's profound understanding of the credit industry and its international vision, enabling it to discover outstanding companies in the "value trough."

Currently, Jefferson Capital occupies an advantageous position in the market after industry consolidation through diversified portfolios, precise pricing capabilities, and strategic partnerships. As the commercial value of Jefferson Capital continues to rise, Sun Hung Kai & Co. will have the opportunity to realize value.

On the other hand, the fund management business of Sun Hung Kai & Co. also shows strong development momentum, opening new growth space for the company. In 2024, driven by the organic growth of existing funds and the establishment of new partnerships within the year, the total assets under management in fund management reached a record of USD 2 billion, with an increase of 109.3%, leading to a year-on-year revenue growth of 191.7% to HKD 49 million. This highlights the effectiveness of the company's strategic adjustments and the high operational leverage of its business model. At the same time, the company has further expanded the scope of its fund management business, product portfolio, and client base through collaborations with strategic partners such as GAM and Wentworth.

Meanwhile, the funds under Sun Hung Kai & Co. have received recognition from international authoritative awards, embodying its fund management capabilities. Recently, the hedge fund of funds SHK Latitude Alpha, managed by the Sun Hung Kai team, was nominated for the HFM Asia Pacific Performance Awards in the hedge fund of funds category. This international award is based on objective data, such as absolute returns and Sharpe ratios, and is regarded as the most influential hedge fund award in the Asia-Pacific region, aimed at recognizing the best-performing funds. This also reflects the two main objectives of hedge funds: managing volatility and delivering positive returns to investors.

It is understood that SHK Latitude Alpha was launched in 2021 and is managed by a team led by Allen Sing, CIO of Sun Hung Kai Capital Partners. The investment process of this fund is based on rich experience and in-depth research, ensuring high transparency and aiming to generate outstanding risk-adjusted returns across different market cycles. The nomination for this award fully affirms the investment returns of the fund, helping to enhance investor confidence and potentially attracting more capital inflow, thereby promoting business growth.

Strengthening Advantages in Credit Business, Releasing Platform Synergy Effects

In recent years, Sun Hung Kai & Co. has achieved resilient growth across cycles through diversified businesses, with the credit business serving as a "cash cow," providing long-term support for the company's financial stability and strategic business development Recently, the credit business has also made impressive progress—SHK Credit, a subsidiary of the company, has been appointed again as the service provider for a second residential mortgage portfolio of USD 70 million, following its successful management of the first USD 100 million institutional investment residential mortgage loan portfolio. This loan portfolio is jointly invested by SUN HUNG KAI CO and external investment institutions.

The recent appointments for managing mortgage loan portfolios by SHK Credit mark a successful expansion of its business line and further validate the reliability and scalability of the company's professional service platform. The expansion of the credit business is based on the company's deep insights into the balance sheet dilemmas faced by Hong Kong property developers, as developers have a pressing need to accelerate the divestment of on-balance-sheet assets to recoup funds during the current downturn in the real estate industry.

The company's management emphasizes that the consecutive appointments for managing two loan portfolios reflect a trend where developers are increasingly outsourcing residential mortgage loan portfolios and services to trusted third-party providers, allowing them to focus on project sales and development. SHK Credit has accurately seized this structural opportunity, broadening its revenue sources through the synergy between credit and investment management businesses.

Overall, SUN HUNG KAI CO has formed a diversified and complementary business ecosystem through its credit, investment management, and fund management services. This not only confirms the foresight of the company's strategic layout but will also inject strong momentum into the growth of its various business lines in the future. Looking ahead, as a leading alternative asset investment platform, the company will continue to develop steadily with a diversified and synergistic business approach, making it worthy of long-term attention from investors