Henderson Land Development Co (0012) AI Stock Analysis

• Market Cap: $102.64B
• Dividend Yield: 8.99%
• Average Volume (3M): 6.37M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.67
• Revenue Growth: 3.52%
• EPS Growth: -32.01%
• Country: HK
• Employees: 9,970
• Sector: Real Estate
• Sector Strength: 77
• Industry: Real Estate - Diversified
• EPS (TTM): 1.30
• Shares Outstanding: 4,841,387,000
• 10 Day Avg. Volume: 6,060,067
• 30 Day Avg. Volume: 6,372,310
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.26
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.89
• Price Target Upside: 10.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Henderson Land Development Co has a strong equity position and attractive dividend yield, but faces challenges with revenue consistency and cash flow management. Technical indicators show weak market momentum. The company's valuation is reasonable, but operational inefficiencies need to be addressed to improve stock performance.

Positive Factors

Land Development

Largest agricultural landowner in Hong Kong, the company can convert agricultural land into residential or other usage at a favourable cost.

Market Response

Encouraging market response to recent launches.

Valuation

The stock is trading at a 61% discount to the appraised current NAV, making the valuation appear inexpensive.

Negative Factors

Earnings

FY24 underlying profit rose by 1% y/y to HKD9.8bn, below our estimate due to weaker-than-expected property development profit and larger-than-expected interest expenses.

Property Demand

Any deterioration in property demand could negatively impact earnings, presenting a risk to the company's financial performance.

Henderson Land Development Co Business Overview & Revenue Model

Company Description

Henderson Land Development Co., Ltd. (0012) is a leading property development and investment group based in Hong Kong. The company is primarily engaged in the development of residential, commercial, and industrial properties. In addition to property development, Henderson Land also invests in properties for long-term rental purposes and operates a range of related businesses, including construction, infrastructure, and hotel operations. The company is known for its substantial land bank, which supports its development pipeline, and its extensive portfolio of high-quality real estate assets across Hong Kong and mainland China.

How the Company Makes Money

Henderson Land Development Co. generates revenue through several key streams: property sales, rental income, construction services, and hospitality operations. The primary source of revenue is the sale of residential and commercial properties developed by the company. Rental income from its investment properties, including office buildings, shopping centers, and hotels, contributes a stable and recurring revenue stream. The company's construction arm provides construction and project management services, adding another layer of income. Additionally, the operation of hotels and hospitality services further diversifies its income sources. Henderson Land also benefits from strategic partnerships and joint ventures, which enhance its development capabilities and market reach.

Henderson Land Development Co Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
28.73B	27.34B	25.44B	23.89B	25.42B	24.37B
	Gross Profit
9.27B	9.80B	10.26B	12.44B	15.71B	12.99B
	EBIT
6.29B	6.21B	6.57B	9.30B	12.66B	9.72B
	EBITDA
6.81B	12.83B	7.11B	9.80B	13.09B	10.10B
	Net Income Common Stockholders
6.48B	9.26B	9.24B	13.20B	10.19B	16.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.54B	22.11B	11.74B	11.34B	6.13B	10.93B
	Total Assets
281.56B	542.55B	529.79B	550.30B	461.09B	455.25B
	Total Debt
41.62B	161.69B	150.09B	159.48B	96.29B	94.54B
	Net Debt
29.08B	140.07B	140.26B	150.99B	90.71B	84.80B
	Total Liabilities
71.66B	198.45B	184.64B	198.13B	128.90B	129.85B
	Stockholders Equity
155.47B	326.54B	327.95B	335.02B	327.61B	320.85B
Cash Flow		Free Cash Flow
12.00B	14.46B	7.95B	-54.16B	4.51B	3.17B
	Operating Cash Flow
16.80B	14.46B	11.13B	685.00M	7.07B	6.74B
	Investing Cash Flow
-1.96B	16.00M	12.15B	-50.04B	-974.00M	-3.82B
	Financing Cash Flow
-16.78B	-5.42B	-21.30B	52.05B	-10.75B	-5.87B

Henderson Land Development Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0012, the sentiment is Negative. The current price of 21.55 is above the 20-day moving average (MA) of 21.54, below the 50-day MA of 21.74, and below the 200-day MA of 23.10, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 58.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0012.

Henderson Land Development Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0113	74 Outperform	$1.83B	7.10	7.44%	9.36%	-12.74%	-17.17%
0016	71 Outperform	HK$207.34B	11.90	2.88%	5.30%	20.91%	-29.29%
0083	70 Outperform	$68.78B	18.36	2.17%	7.63%	-30.38%	-43.73%
0012	63 Neutral	$102.64B	16.30	1.94%	8.99%	3.52%	-32.01%
0004	60 Neutral	HK$56.90B	―	-2.30%	2.14%	-36.07%	-441.20%
Sector *	59 Neutral	$2.72B	11.53	0.09%	8679.99%	5.56%	-16.50%
0017	44 Neutral	$11.53B	―	-10.34%	10.92%	-56.64%	-3398.20%

Henderson Land Development Co Corporate Events

Henderson Land’s Sale of Kowloon Property to Miramar Group Falls Through

Henderson Land Development announced that a proposed transaction to sell a land lot at No.16 Kimberley Road, Kowloon, along with a new hotel to be built there, to Miramar Group was not approved at an extraordinary general meeting. Despite the cancellation, the company will proceed with its plans to redevelop the property into a 23-storey hotel and commercial complex, and will continue to explore opportunities with Miramar Group regarding the new hotel.

Henderson Land Development Co Reports Stable Profit Amid Market Fluctuations

Henderson Land Development Co reported a slight increase in underlying profit attributable to shareholders for 2024, reaching HK$9,774 million. Despite a fair value loss from property revaluations, the company maintained its total dividend payout at HK$1.80 per share. The Hong Kong property market experienced fluctuations due to changes in government policies and interest rates, impacting the company’s revenue from property development, which saw a 16% decline. However, successful sales of residential projects like Belgravia Place and Eight Southpark contributed positively to the company’s performance.

Henderson Land Declares Final Dividend for 2024

Henderson Land Development Company Limited announced a final ordinary dividend of HKD 1.3 per share for the financial year ending December 31, 2024. The dividend will be paid on June 20, 2025, following shareholder approval on June 3, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Passing of Henderson Land Founder Dr. Lee Shau Kee

Henderson Land Development Company Limited announced the passing of its founder and Executive Director, Dr. Lee Shau Kee, on March 17, 2025. Dr. Lee was instrumental in building the company into one of Hong Kong’s largest property developers and was a respected philanthropist. The board expressed its deepest condolences and assured stakeholders that Dr. Lee’s passing would not impact the company’s operations.

Henderson Land Development Announces Board Composition and Committee Roles

Henderson Land Development Company Limited has announced the composition of its board of directors and their roles, comprising 16 directors including executive, non-executive, and independent non-executive members. The announcement also details the structure of various board committees, highlighting the company’s commitment to strong corporate governance and strategic oversight.