Henderson Land Development Co (0012) AI Stock Analysis

• Market Cap: $135.75B
• Dividend Yield: 6.42%
• Average Volume (3M): 6.28M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.66
• Revenue Growth: -19.91%
• EPS Growth: -6.92%
• Country: HK
• Employees: 9,970
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.63
• Shares Outstanding: 4,841,387,000
• 10 Day Avg. Volume: 6,604,902
• 30 Day Avg. Volume: 6,275,941
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 11.63
• Enterprise Value/Gross Profit: 33.01
• Enterprise Value/Ebitda: 33.64
• 1Y Price Target: $29.17
• Price Target Upside: 4.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: HK$28.00 ▲(0.14% 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

Negative Factors

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. makes money primarily through its property development and investment operations. The company generates revenue by developing residential, commercial, and industrial properties, which are sold or leased to generate income. Rental income from investment properties is a stable revenue stream, while property development sales contribute to significant earnings. In addition, Henderson Land benefits from its involvement in construction and infrastructure projects, as well as the operation of hotels, which adds to its diversified income sources. Strategic partnerships and joint ventures in large-scale property projects further enhance its revenue potential.

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: 27.96
• 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:0012, the sentiment is Positive. The current price of 27.96 is above the 20-day moving average (MA) of 27.00, above the 50-day MA of 26.90, and above the 200-day MA of 23.21, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.74 is Negative, 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
0010	80 Outperform	20.68B	14.50	1.68%	5.66%	-9.78%	-29.50%
0012	69 Neutral	$135.75B	22.51	1.89%	6.42%	-19.91%	-6.92%
0017	57 Neutral	20.76B	-1.10	0.00%	6.09%	-56.64%	-3398.20%
0041	51 Neutral	11.08B	-6.14	-3.21%	5.87%	1.37%	-157.43%
0242	47 Neutral	2.29B	-4.44	0.00%	―	-21.25%	24.06%
0207	46 Neutral	8.25B	-24.68	0.00%	1.24%	7.69%	30.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Henderson Land Development Co Corporate Events

Henderson Land Reports Decline in Interim Profit Amid Market Challenges

Henderson Land Development Co reported a 44% decrease in underlying profit for the first half of 2025, attributed to a lack of one-time gains from government land resumption and property disposals that were present in the previous year. Despite the challenging economic environment, the company achieved satisfactory sales results from new residential developments, with significant contracted sales yet to be recognized, indicating potential future revenue growth.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$28.75 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 Announces Interim Dividend for H1 2025

Henderson Land Development Company Limited announced an interim dividend of HKD 0.5 per share for the six months ending June 30, 2025. This decision reflects the company’s financial performance and commitment to returning value to shareholders, with the payment scheduled for September 17, 2025. The announcement may positively impact investor sentiment and reinforce Henderson Land’s market position as a reliable dividend-paying entity.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$28.75 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 Adjusts Convertible Bond Conversion Price

Henderson Land Development Co announced an adjustment to the conversion price of its HK$8 billion 0.5% guaranteed convertible bonds due 2030. The conversion price has been adjusted from HK$36 to HK$35.35 per share following the payment of an interim dividend. This adjustment increases the maximum number of shares issuable upon full conversion of the bonds, enhancing the company’s flexibility in capital management. The move is expected to have implications for shareholders and investors, as it affects the potential dilution of shares and the company’s capital structure.

The most recent analyst rating on (HK:0012) stock is a Buy with a HK$28.75 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 Schedules Board Meeting for Interim Results and Dividend Decision

Henderson Land Development Company Limited has scheduled a board meeting on August 20, 2025, to approve the interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential returns, impacting its market positioning and investor relations.

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 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.