Hang Lung Group (0010) AI Stock Analysis

• Market Cap: HK$16.58B
• Dividend Yield: 10.67%
• Average Volume (3M): 796.92K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.71
• Revenue Growth: 8.13%
• EPS Growth: -42.62%
• Country: HK
• Employees: 4,004
• Sector: Real Estate
• Sector Strength: 73
• Industry: Real Estate - Diversified
• EPS (TTM): 1.18
• Shares Outstanding: 1,361,618,300
• 10 Day Avg. Volume: 825,602
• 30 Day Avg. Volume: 796,918
• PEG Ratio: 0.13
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.96
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: HK$13.00 ▲(6.73%Upside)

Hang Lung Group scores well due to its robust technical analysis and attractive valuation, despite concerns over profitability and leverage. The strong market momentum and undervaluation make it an appealing prospect in the real estate industry.

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 makes money primarily through the development and leasing of commercial and residential properties. Its key revenue streams include rental income from its extensive portfolio of shopping malls and office buildings, which are strategically located in prime urban areas. The company also generates revenue from property sales, particularly in the residential sector. Additionally, Hang Lung Group benefits from property management services that enhance the value and appeal of its properties. The company's financial performance is significantly influenced by its ability to maintain high occupancy rates, attract premium tenants, and capitalize on the growth of major urban centers where its properties are located.

Hang Lung Group Financial Statement Overview

Summary

Hang Lung Group exhibits stable revenue growth and strong cash flow generation, which are key strengths. However, the decline in net profit margin and rising leverage pose risks that need monitoring.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.76B	11.01B	10.94B	10.93B	9.56B
	Gross Profit
6.83B	7.92B	7.68B	7.82B	6.91B
	EBIT
6.16B	7.24B	73.00M	82.00M	6.35B
	EBITDA
5.21B	7.20B	7.08B	7.26B	-728.00M
	Net Income Common Stockholders
1.61B	2.81B	2.72B	2.59B	-1.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.82B	6.34B	5.79B	9.14B	6.79B
	Total Assets
234.97B	231.45B	226.54B	238.03B	224.75B
	Total Debt
58.06B	50.97B	46.25B	46.22B	39.10B
	Net Debt
47.24B	44.63B	40.54B	41.79B	37.51B
	Total Liabilities
82.28B	76.54B	71.33B	73.54B	65.41B
	Stockholders Equity
95.78B	94.36B	92.82B	95.84B	92.11B
Cash Flow		Free Cash Flow
5.04B	3.91B	378.00M	-1.14B	-546.00M
	Operating Cash Flow
5.21B	4.02B	3.10B	1.74B	2.58B
	Investing Cash Flow
-3.07B	-2.85B	-4.18B	-1.95B	-2.57B
	Financing Cash Flow
2.38B	-566.00M	-1.93B	3.63B	3.61B

Hang Lung Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 12.18 is above the 20-day moving average (MA) of 11.55, above the 50-day MA of 10.87, and above the 200-day MA of 9.98, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 64.10 is Neutral, neither overbought nor oversold. The STOCH value of 71.69 is Neutral, 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	79 Outperform	HK$16.58B	10.28	1.69%	10.67%	8.13%	-42.62%
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
GEAHF		$1.26B	―	-3.12%	7.61%	―	―
HLDVF		$16.47B	20.40	1.94%	9.84%	―	―
NWWDF		$1.55B	―	-10.34%	10.17%	―	―
SHTGF		$219.12M	―	-2.65%	―	―	―
HKP		€349.22M	―	-0.98%	3.47%	―	―

Hang Lung Group Corporate Events

Hang Lung Group Secures Approval for Key Resolutions at AGM

Hang Lung Group Limited announced the successful approval of all proposed resolutions at its annual general meeting held on April 30, 2025. Key resolutions included the approval of audited financial statements, declaration of a final dividend, re-election of directors, re-appointment of KPMG as auditor, and granting of mandates to the board for share buybacks and issuance. These approvals are expected to strengthen the company’s governance and operational capabilities, potentially enhancing its market position and stakeholder confidence.

Hang Lung Group Announces Board of Directors and Their Roles

Hang Lung Group Limited announced the composition of its board of directors, highlighting the roles and functions of its executive, non-executive, and independent non-executive directors. This announcement provides clarity on the leadership structure, potentially impacting the company’s governance and strategic decision-making processes.

Hang Lung Group Appoints New NRC Member

Hang Lung Group Limited, a company incorporated in Hong Kong, has announced the appointment of Ms. May Siew Boi TAN as a member of its Nomination and Remuneration Committee effective March 27, 2025. Ms. TAN, who brings extensive experience from her roles at Manulife Financial Corporation and CLP Holdings Limited, is expected to enhance the company’s organizational strategy and governance, potentially impacting its operational effectiveness and stakeholder relations.