Hang Lung Group (0010) AI Stock Analysis

• Market Cap: $20.51B
• Dividend Yield: 5.7%
• Average Volume (3M): 799.21K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.68
• 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: 6.04
• Enterprise Value/Revenue: 11.67
• Enterprise Value/Gross Profit: 14.67
• Enterprise Value/Ebitda: 20.22
• 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 ▲(19.28% 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.

Hang Lung Group Business Overview & Revenue Model

Company Description

Hang Lung Group Limited (stock code: 0010) is a prominent property investment and development company based in Hong Kong. Established in 1960, the company primarily focuses on the management and development of commercial and residential properties. Hang Lung operates in two main sectors: property investment, which includes shopping malls, office buildings, and residential developments, and property development, where it undertakes large-scale real estate projects in both Hong Kong and mainland China. The company's core services include property leasing, sales of residential units, and providing property management services.

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: 15.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 15.09 is below the 20-day moving average (MA) of 15.37, above the 50-day MA of 14.99, and above the 200-day MA of 12.55, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 35.09 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	74 Outperform	$20.51B	14.42	1.48%	5.70%	-9.78%	-29.50%
0012	70 Outperform	$134.78B	22.35	1.89%	6.05%	-19.91%	-6.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0041	53 Neutral	HK$11.07B	―	-3.35%	6.13%	1.37%	-157.43%
0207	51 Neutral	€8.54B	-25.53	-1.16%	1.16%	7.69%	30.06%
0242	49 Neutral	$2.20B	-4.27	-1.67%	―	-21.25%	24.06%
0017	44 Neutral	$17.97B	-1.10	-9.54%	―	-40.92%	-42.67%