Henderson Land Development Co (0012) AI Stock Analysis

• Market Cap: HK$143.40B
• Dividend Yield: 6.2%
• Average Volume (3M): 5.14M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.61
• 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: 3,757,408
• 30 Day Avg. Volume: 5,137,023
• PEG Ratio: -0.57
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 4.52
• P/FCF Ratio: 7.47
• 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: HK$30.32
• Price Target Upside: 2.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$31.00 ▲(4.66% Upside)

The overall stock score is driven primarily by solid technical analysis and a reasonable valuation, supported by a strong dividend yield. However, financial performance concerns, particularly in cash flow and income statement metrics, slightly temper the overall score. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Strong Equity Levels

Strong equity levels provide a solid foundation for financial stability, enabling the company to withstand market fluctuations and invest in growth opportunities.

Diversified Income Sources

Diversified income sources reduce dependency on any single revenue stream, enhancing resilience against sector-specific downturns and supporting long-term growth.

Strong Gross Profit Margin

A strong gross profit margin reflects effective cost control and pricing power, which can sustain profitability even in challenging market conditions.

Negative Factors

Revenue Growth Decline

Inconsistent revenue growth can signal market challenges or operational inefficiencies, potentially impacting the company's ability to expand and compete effectively.

Cash Flow Inconsistencies

Inconsistent cash flows can hinder the company's ability to fund new projects and investments, limiting growth potential and financial flexibility.

Decline in Profit Margins

Declining profit margins may indicate rising costs or competitive pressures, which could erode profitability and affect the company's financial health over time.

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. primarily generates revenue through the sale and leasing of its real estate properties. The company engages in property development, which involves acquiring land, constructing buildings, and subsequently selling or leasing them to consumers and businesses. Key revenue streams include residential property sales, commercial leasing, and rental income from its extensive portfolio of properties. Additionally, the company benefits from partnerships with local government and industry stakeholders, which can facilitate land acquisitions and development projects. The company also invests in infrastructure and property management services, further enhancing its income through fees associated with these services. Fluctuations in the real estate market and economic conditions in Hong Kong can significantly impact its earnings, making market demand and strategic planning critical to its revenue model.

Henderson Land Development Co Financial Statement Overview

Summary

Henderson Land Development Co demonstrates a solid financial foundation with strong equity and profitability metrics. However, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.05B	25.26B	27.57B	25.44B	23.89B	25.02B
Gross Profit	8.31B	8.90B	9.80B	10.26B	12.44B	15.71B
EBITDA	7.37B	8.73B	12.83B	7.11B	9.80B	13.09B
Net Income	6.03B	6.30B	9.26B	9.24B	13.20B	10.19B
Balance Sheet
Total Assets	532.57B	531.24B	542.55B	529.79B	550.30B	461.09B
Cash, Cash Equivalents and Short-Term Investments	17.65B	18.77B	22.11B	11.74B	11.34B	6.13B
Total Debt	81.47B	154.22B	161.69B	150.09B	159.48B	89.76B
Total Liabilities	193.84B	190.66B	198.45B	184.64B	198.13B	128.90B
Stockholders Equity	320.14B	322.15B	326.54B	327.95B	335.02B	327.61B
Cash Flow
Free Cash Flow	5.92B	15.30B	14.46B	7.95B	-54.16B	4.51B
Operating Cash Flow	8.78B	15.30B	14.46B	11.13B	685.00M	7.07B
Investing Cash Flow	-9.30B	-1.87B	16.00M	12.15B	-50.04B	-974.00M
Financing Cash Flow	-2.37B	-21.20B	-5.42B	-21.30B	52.05B	-10.75B

Henderson Land Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.62
• 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 29.62 is above the 20-day moving average (MA) of 28.99, above the 50-day MA of 29.14, and above the 200-day MA of 26.03, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 88.41 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	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%

Henderson Land Development Co Corporate Events

Henderson Land Development Enhances Gender Diversity in Nomination Committee

Henderson Land Development Company Limited has announced a change in its Nomination Committee, with Madam Fung Lee Woon King replacing Dr. Lam Ko Yin, Colin, as a member. This change, effective from December 1, 2025, is part of the company’s efforts to enhance gender diversity within its committee structure.

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 Board Composition and Roles

Henderson Land Development Company Limited has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The announcement outlines the roles and functions of each director, as well as the structure of various board committees, which are crucial for the company’s governance and strategic decision-making processes.

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 Co Strengthens Board Governance with Nomination Committee Guidelines

Henderson Land Development Co has outlined the responsibilities of its Nomination Committee, emphasizing its role in ensuring the Board of Directors is well-structured and diverse. The committee is tasked with reviewing the board’s composition, assessing director independence, and making recommendations for appointments and succession planning, which are crucial for aligning with the company’s strategic goals and maintaining effective governance.

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.