Henderson Land Development Co (0012) AI Stock Analysis

• Market Cap: $127.57B
• Dividend Yield: 9.87%
• Average Volume (3M): 11.56M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.68
• Revenue Growth: -7.64%
• EPS Growth: -32.01%
• Country: HK
• Employees: 9,970
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Diversified
• EPS (TTM): 0.66
• Shares Outstanding: 4,841,387,000
• 10 Day Avg. Volume: 12,814,285
• 30 Day Avg. Volume: 11,560,319
• PEG Ratio: -6.84
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.92
• 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: $29.59
• Price Target Upside: 11.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: HK$28.00 ▲(5.46%Upside)

The company's solid financial foundation and positive technical indicators are significant strengths, despite operational challenges and cash flow inconsistencies. The high dividend yield offers attractive returns, counterbalancing the high P/E ratio. The lack of recent earnings call data limits insight into management's outlook and future guidance.

Positive Factors

Land Development Advantage

Henderson Land boasts the largest farmland land reserve in Hong Kong, allowing it to obtain land for development at a favourable cost.

Northern Metropolis Development

The company is a prime beneficiary of ongoing Northern Metropolis development, which should provide upside on the stock given the company's strong land exposure there.

Stock Valuation

The stock is trading at a 61% discount to the appraised current NAV, which remains inexpensive compared to historical averages.

Negative Factors

Profit and Expenses Concerns

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

Property Demand Risk

Any deterioration in property demand could drag the company's earnings.

Henderson Land Development Co Business Overview & Revenue Model

Company Description

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; trades in building materials; and disposes leasehold land, as well as engages in the food and beverage and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. The company was incorporated in 1976 and is headquartered in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

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

Henderson Land Development Co demonstrates a solid financial foundation with strong equity and profitability metrics. Nonetheless, recent declines in income statement performance and cash flow inconsistencies suggest potential operational inefficiencies or market challenges. The company needs to focus on stabilizing revenue growth and enhancing cash flow management to maintain its financial health.

Income Statement

The company exhibits a stable revenue base with recent fluctuations. The gross profit margin is strong, indicating efficient cost management. However, a decline in net profit margin and EBIT margin over the last year may indicate growing operational challenges. Revenue growth has been inconsistent, with a significant decline in the most recent year.

Balance Sheet

The balance sheet is robust with strong equity levels and a healthy equity ratio. The debt-to-equity ratio is manageable, though the company carries substantial total debt, which could pose risks in a rising interest rate environment. Return on equity is positive but has shown some volatility.

Cash Flow

Cash flow statements highlight concerns with operating and free cash flows being inconsistent. The operating cash flow to net income ratio has varied, indicating potential issues with cash generation from operations. Free cash flow has been positive but unstable, affecting long-term investment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.26B	27.34B	25.44B	23.89B	25.42B
Gross Profit	8.90B	9.80B	10.26B	12.44B	15.71B
EBITDA	8.73B	12.83B	7.11B	9.80B	13.09B
Net Income	6.30B	9.26B	9.24B	13.20B	10.19B
Balance Sheet
Total Assets	531.24B	542.55B	529.79B	550.30B	461.09B
Cash, Cash Equivalents and Short-Term Investments	18.77B	22.11B	11.74B	11.34B	6.13B
Total Debt	154.22B	161.69B	150.09B	159.48B	96.29B
Total Liabilities	190.66B	198.45B	184.64B	198.13B	128.90B
Stockholders Equity	322.15B	326.54B	327.95B	335.02B	327.61B
Cash Flow
Free Cash Flow	15.30B	14.46B	7.95B	-54.16B	4.51B
Operating Cash Flow	15.30B	14.46B	11.13B	685.00M	7.07B
Investing Cash Flow	-1.87B	16.00M	12.15B	-50.04B	-974.00M
Financing Cash Flow	-21.20B	-5.42B	-21.30B	52.05B	-10.75B

Henderson Land Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.55
• 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:0012, the sentiment is Positive. The current price of 26.55 is below the 20-day moving average (MA) of 27.41, above the 50-day MA of 25.26, and above the 200-day MA of 22.91, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	70 Outperform	¥233.20B	14.50	10.69%	3.73%	18.27%	21.04%
0012	69 Neutral	$127.57B	20.41	1.94%	9.87%	-7.64%	-32.01%
GEAHF	―	$1.40B	―	-3.12%	6.59%	―	―
HNLGF	―	$2.37B	10.08	1.69%	10.93%	―	―
NWWDF	―	$1.74B	―	-10.34%	9.04%	―	―
SHTGF	―	$257.56M	―	-2.65%	―	―	―
HKP	―	€577.00M	―	-0.98%	2.18%	―	―

Henderson Land Development Co Corporate Events

Henderson Land Completes HK$8 Billion Bond Issuance

Henderson Land Development Co has successfully completed the issuance of HK$8 billion in 0.5% guaranteed convertible bonds due 2030. The bonds, which are listed on the Vienna Stock Exchange, will support the company’s property development and investment business in Hong Kong and refinancing efforts. The issuance will slightly dilute existing shareholders’ stakes, with bondholders potentially holding 4.39% of the company’s shares upon full conversion.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Henderson Land Development Co stock, see the HK:0012 Stock Forecast page.

Henderson Land Development Announces HK$8 Billion Convertible Bond Issuance

Henderson Land Development Co has announced the proposed issuance of HK$8 billion in 0.5% guaranteed convertible bonds due in 2030. The bonds, which are convertible into shares, will be listed on the Vienna MTF and the Hong Kong Stock Exchange, with net proceeds intended for general corporate purposes and refinancing. The issuance is under a general mandate and does not require further shareholder approval, although completion is contingent on certain conditions.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Henderson Land Development Co stock, see the HK:0012 Stock Forecast page.

Henderson Land Development Proposes HKD-Denominated Convertible Bonds Issuance

Henderson Land Development Co has announced a proposed issuance of HKD-denominated guaranteed convertible bonds through its indirect wholly-owned subsidiary. The bonds will be offered internationally, excluding the United States, and are aimed at professional investors in Hong Kong. The proceeds from the bond issuance are intended for general corporate purposes and/or refinancing. The issuance is not expected to significantly alter the controlling shareholder’s stake, and the company plans to list the bonds on the Vienna MTF and apply for permission to deal in shares on the Hong Kong Stock Exchange upon conversion of the bonds.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Henderson Land Development Co stock, see the HK:0012 Stock Forecast page.

Henderson Land Secures Major Lease at Central’s Site 3

Henderson Land Development Company Limited has announced a lease agreement through its subsidiary, Pacific Gate Development Limited, for a significant portion of office space at Site 3, Central, Hong Kong. The lease, with Jane Street Asia Limited, covers 223,437 square feet and is set to commence in 2028, positioning the site as a future landmark in Hong Kong’s Central Business District.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$25.00 price target. To see the full list of analyst forecasts on Henderson Land Development Co stock, see the HK:0012 Stock Forecast page.

Henderson Land Development Passes All Resolutions at AGM

At the Annual General Meeting held on June 3, 2025, Henderson Land Development Company Limited successfully passed all proposed resolutions, including the approval of financial statements, the declaration of a final dividend, and the re-election of several directors. The meeting also authorized the reappointment of KPMG as the auditor and granted the board mandates to buy back and allot shares, indicating strong shareholder support and strategic alignment for future growth.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$25.00 price target. To see the full list of analyst forecasts on Henderson Land Development Co stock, see the HK:0012 Stock Forecast page.

Henderson Land Development Co Announces 2025 AGM Agenda

Henderson Land Development Co has announced its upcoming Annual General Meeting (AGM) scheduled for June 3, 2025, at the Four Seasons Hotel in Hong Kong. The agenda includes reviewing the company’s financial statements for the year ending December 31, 2024, declaring a final dividend, re-electing directors, and re-appointing the auditor. Additionally, shareholders will consider resolutions to authorize the company’s directors to buy back shares and issue new shares, with specific limits on the number of shares involved. These resolutions aim to provide the company with flexibility in managing its capital structure and enhancing shareholder value.