Henderson Land Development Co (0012) AI Stock Analysis

• Market Cap: $139.19B
• Dividend Yield: 9.04%
• Average Volume (3M): 8.75M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.70
• Revenue Growth: -7.64%
• EPS Growth: -32.01%
• Country: HK
• Employees: 9,970
• Sector: Real Estate
• Sector Strength: 58
• Industry: Real Estate - Diversified
• EPS (TTM): 1.30
• Shares Outstanding: 4,841,387,000
• 10 Day Avg. Volume: 12,847,801
• 30 Day Avg. Volume: 8,748,979
• PEG Ratio: -0.48
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.60
• 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: $25.43
• Price Target Upside: -9.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: HK$29.00 ▲(3.02%Upside)

The overall stock score for Henderson Land Development Co is primarily influenced by its stable financial foundation and attractive valuation, despite operational challenges and overbought technical indicators. The high dividend yield further enhances its appeal, although the risk of a price correction due to overbought conditions should be considered.

Positive Factors

Land Reserves

Henderson Land boasts the largest farmland land reserve in Hong Kong, which is being monetized as the government develops the Northern Metropolis.

Market Response

The recent launch of Eight Southpark in Kowloon City was greeted with encouraging response, indicating potential for future projects.

Valuation

The stock is trading at a 61% discount to the appraised current NAV, making the valuation appear inexpensive.

Negative Factors

Property Demand

Any deterioration in property demand could negatively impact earnings, presenting a risk to the company's financial performance.

Property Development

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

Henderson Land Development Co Business Overview & Revenue Model

Company Description

Henderson Land Development Co., Ltd. (0012) is a leading property development and investment group based in Hong Kong. The company is primarily engaged in the development of residential, commercial, and industrial properties. In addition to property development, Henderson Land also invests in properties for long-term rental purposes and operates a range of related businesses, including construction, infrastructure, and hotel operations. The company is known for its substantial land bank, which supports its development pipeline, and its extensive portfolio of high-quality real estate assets across Hong Kong and mainland China.

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

The company demonstrates a solid financial foundation with strong equity levels and a manageable debt-to-equity ratio. However, inconsistencies in revenue growth and cash flow generation raise concerns about operational efficiency and market challenges.

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: 28.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 28.15 is above the 20-day moving average (MA) of 25.70, above the 50-day MA of 23.32, and above the 200-day MA of 22.57, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 77.42 is Negative, neither overbought nor oversold. The STOCH value of 87.83 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	69 Neutral	$17.89B	11.09	1.69%	9.89%	8.13%	-42.62%
0041	63 Neutral	HK$10.63B	―	-3.12%	7.03%	2.20%	-327.14%
0012	62 Neutral	$139.19B	22.11	1.94%	9.04%	-7.64%	-32.01%
0017	58 Neutral	HK$14.47B	―	-10.34%	8.70%	-56.64%	-3398.20%
Sector *	53 Neutral	$1.21B	3.20	-0.13%	9.61%	-1.86%	-126.37%
0242	47 Neutral	HK$1.87B	―	-2.65%	―	11.74%	-21.82%
0207	46 Neutral	HK$3.37B	―	-0.98%	3.04%	48.92%	-176.75%

Henderson Land Development Co Corporate Events

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.

Henderson Land’s Sale of Kowloon Property to Miramar Group Falls Through

Henderson Land Development announced that a proposed transaction to sell a land lot at No.16 Kimberley Road, Kowloon, along with a new hotel to be built there, to Miramar Group was not approved at an extraordinary general meeting. Despite the cancellation, the company will proceed with its plans to redevelop the property into a 23-storey hotel and commercial complex, and will continue to explore opportunities with Miramar Group regarding the new hotel.