Hang Lung Group (0010) AI Stock Analysis

• Market Cap: HK$21.17B
• Dividend Yield: 5.62%
• Average Volume (3M): 799.21K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.69
• Revenue Growth: -9.78%
• EPS Growth: -29.50%
• Country: HK
• Employees: 4,004
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.51
• Shares Outstanding: 1,361,618,300
• 10 Day Avg. Volume: 543,878
• 30 Day Avg. Volume: 799,214
• PEG Ratio: -0.21
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 2.83
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$18.00 ▲(15.76% Upside)

Hang Lung Group's overall stock score is driven by its solid financial performance, characterized by stable revenue growth and strong cash flow generation. The technical analysis indicates strong bullish momentum, although overbought conditions could pose a short-term risk. The valuation is reasonable with an attractive dividend yield, but not significantly undervalued. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Cash Flow Generation

Strong free cash flow generation indicates effective cash management and provides the company with the flexibility to invest in growth opportunities and manage debt.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and capitalize on demand for its properties, supporting long-term business stability.

Operational Performance

A healthy EBITDA margin indicates efficient operations and cost management, which are crucial for maintaining profitability and competitive edge in the real estate sector.

Negative Factors

Net Profit Margin Decline

A declining net profit margin can impact the company's ability to generate sufficient returns, potentially affecting its financial health and investment capacity.

Rising Leverage

Increasing leverage may constrain financial flexibility and elevate risk, particularly in economic downturns, affecting the company's long-term stability.

Gross Profit Margin Decrease

A decrease in gross profit margin suggests potential challenges in cost control or pricing power, which could pressure profitability if not addressed.

Hang Lung Group Business Overview & Revenue Model

Company Description

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and Mainland China. The company operates through Property Leasing and Property Sales segments. It develops properties for sale and lease, such as large-scale commercial, office, and residential developments. The company also develops various properties, including shopping mall, office premises, residential and industrial premises, and carparking bays. Its investment properties portfolio includes Grand Gateway 66, a commercial, office, and residential complex, as well as Plaza 66, a commercial and office complex in Shanghai; Palace 66 and Forum 66 in Shenyang; Parc 66 in Jinan; Center 66 in Wuxi; Riverside 66 in Tianjin; Olympia 66 in Dalian; Spring City 66 in Kunming; Heartland 66 in Wuhan; and Westlake 66 in Hangzhou. In addition, the company offers car park and property management, financial, project management, dry and laundry cleaning, and property agency services, as well as operates and manages apartment. Hang Lung Group Limited was founded in 1960 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Hang Lung Group generates revenue primarily through its property leasing and sales activities. The company earns significant income from leasing its commercial properties, particularly shopping malls and office spaces, to various tenants. Additionally, revenue is generated from the sale of residential properties developed by the company. Key revenue streams include rental income, sales from property developments, and service fees from property management. The company also engages in strategic partnerships and collaborations with local and international firms to enhance its development projects and expand its market presence, which contributes to its overall earnings. Economic factors, market demand for real estate, and the company's ability to effectively manage and develop its properties are critical elements influencing its financial performance.

Hang Lung Group Financial Statement Overview

Summary

Hang Lung Group demonstrates stable revenue growth and robust cash flow generation, which are strengths in its financial profile. However, the decline in net profit margin and increasing leverage are potential risks that need attention. Overall, the company maintains a solid financial standing, but careful management of debt and profitability is crucial for sustaining growth.

Income Statement

The income statement shows a consistent increase in total revenue over the past few years, with a noticeable jump in 2024. However, the gross profit margin has slightly decreased, and the net profit margin has declined significantly due to a drop in net income. The lack of EBIT in 2024 is concerning, but the EBITDA margin remains healthy, suggesting good operational performance despite EBIT issues.

Balance Sheet

The balance sheet reveals a stable equity base with stockholders' equity growing slightly. The debt-to-equity ratio has increased over the years, indicating rising leverage which could pose a risk. The equity ratio remains stable, reflecting a balanced asset structure. However, high total debt levels are a concern for future financial flexibility.

Cash Flow

The cash flow statement demonstrates strong free cash flow generation in recent years, with significant growth in operating cash flow. The free cash flow to net income ratio is robust, indicating efficient cash management. However, fluctuations in capital expenditures and investing cash flow suggest some volatility in investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.61B	11.76B	11.01B	10.94B	10.93B	9.56B
Gross Profit	8.44B	6.83B	7.92B	7.68B	7.82B	6.91B
EBITDA	6.13B	5.21B	7.20B	7.08B	7.26B	6.40B
Net Income	1.42B	1.61B	2.81B	2.72B	2.59B	-1.54B
Balance Sheet
Total Assets	234.73B	234.97B	231.45B	226.54B	238.03B	224.75B
Cash, Cash Equivalents and Short-Term Investments	7.48B	10.82B	6.34B	5.79B	9.14B	6.79B
Total Debt	49.56B	58.06B	50.97B	46.25B	46.22B	39.10B
Total Liabilities	80.75B	82.28B	76.54B	71.33B	73.54B	65.41B
Stockholders Equity	97.65B	95.78B	94.36B	92.82B	95.84B	92.11B
Cash Flow
Free Cash Flow	1.74B	5.04B	3.91B	378.00M	-1.14B	-546.00M
Operating Cash Flow	3.69B	5.21B	4.02B	3.10B	1.74B	2.58B
Investing Cash Flow	-3.13B	-3.07B	-2.85B	-3.20B	-1.44B	-2.21B
Financing Cash Flow	-455.00M	2.38B	-566.00M	-4.25B	1.82B	2.06B

Hang Lung Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0010, the sentiment is Positive. The current price of 15.55 is above the 20-day moving average (MA) of 15.27, above the 50-day MA of 15.38, and above the 200-day MA of 13.37, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 88.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0010.

Hang Lung Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0010	74 Outperform	HK$21.17B	14.89	1.48%	5.62%	-9.78%	-29.50%
0012	70 Outperform	HK$143.40B	23.78	1.89%	6.20%	-19.91%	-6.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0041	53 Neutral	HK$11.16B	-6.18	-3.35%	5.93%	1.37%	-157.43%
0242	49 Neutral	HK$2.05B	-3.97	-1.67%	―	-21.25%	24.06%
0017	44 Neutral	HK$18.93B	-1.16	-9.54%	―	-40.92%	-42.67%

Hang Lung Group Corporate Events

Hang Lung Group CEO Announces Retirement Ahead of 2026

Hang Lung Group has announced the planned retirement of Mr. Weber W.P. Lo, its Chief Executive Officer and Executive Director, effective on or before August 31, 2026. The Boards have begun a thorough search for a successor to ensure a seamless leadership transition, acknowledging Mr. Lo’s significant contributions to the organization. This leadership change reflects the company’s focus on continuity and future growth, with implications for its operational strategy and long-term governance structure.

The most recent analyst rating on (HK:0010) stock is a Buy with a HK$18.00 price target. To see the full list of analyst forecasts on Hang Lung Group stock, see the HK:0010 Stock Forecast page.