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Henderson Land Development Co (HK:0012)
:0012
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Henderson Land Development Co (0012) AI Stock Analysis

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HK:0012

Henderson Land Development Co

(OTC:0012)

Rating:69Neutral
Price Target:
HK$28.00
▲(1.08% 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
Development Projects
The recent launches of two redevelopment projects received an encouraging response, indicating high visibility of near-term development income.
Land Reserves
Henderson Land boasts the largest farmland land reserve in Hong Kong, allowing it to obtain land for development at a favourable cost.
Negative Factors
Financial Performance
FY24 underlying profit rose by 1% y/y to HKD9.8bn, below analyst estimates due to weaker-than-expected property development profit and larger-than-expected interest expenses.
Property Demand
Any deterioration in property demand could drag the company's earnings.

Henderson Land Development Co (0012) vs. iShares MSCI Hong Kong ETF (EWH)

Henderson Land Development Co Business Overview & Revenue Model

Company DescriptionHenderson Land Development Co. Ltd. (0012) is a leading property developer in Hong Kong, with significant operations across mainland China. The company engages in various sectors including property development, property investment, construction, and hotel operation. Its core offerings encompass residential, commercial, and industrial properties, providing comprehensive real estate solutions to meet diverse market needs.
How the Company Makes MoneyHenderson 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
68
Positive
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
75
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.26B27.34B25.44B23.89B25.42B
Gross Profit8.90B9.80B10.26B12.44B15.71B
EBITDA8.73B12.83B7.11B9.80B13.09B
Net Income6.30B9.26B9.24B13.20B10.19B
Balance Sheet
Total Assets531.24B542.55B529.79B550.30B461.09B
Cash, Cash Equivalents and Short-Term Investments18.77B22.11B11.74B11.34B6.13B
Total Debt154.22B161.69B150.09B159.48B96.29B
Total Liabilities190.66B198.45B184.64B198.13B128.90B
Stockholders Equity322.15B326.54B327.95B335.02B327.61B
Cash Flow
Free Cash Flow15.30B14.46B7.95B-54.16B4.51B
Operating Cash Flow15.30B14.46B11.13B685.00M7.07B
Investing Cash Flow-1.87B16.00M12.15B-50.04B-974.00M
Financing Cash Flow-21.20B-5.42B-21.30B52.05B-10.75B

Henderson Land Development Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.70
Price Trends
50DMA
26.42
Positive
100DMA
23.87
Positive
200DMA
23.10
Positive
Market Momentum
MACD
0.34
Positive
RSI
58.47
Neutral
STOCH
64.87
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 27.7 is above the 20-day moving average (MA) of 26.93, above the 50-day MA of 26.42, and above the 200-day MA of 23.10, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.87 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$19.61B13.461.48%6.06%-9.78%-29.50%
69
Neutral
HK$134.11B21.271.94%6.58%-7.64%-32.01%
62
Neutral
AU$2.95B8.452.58%5.09%18.21%47.14%
59
Neutral
HK$10.96B-3.12%5.98%2.20%-327.14%
57
Neutral
HK$16.28B-10.34%7.68%-56.64%-3398.20%
47
Neutral
HK$2.11B-2.65%11.74%-21.82%
46
Neutral
HK$7.40B-0.98%1.36%48.92%-176.75%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0012
Henderson Land Development Co
27.70
7.07
34.27%
HK:0017
New World Development
6.47
-0.96
-12.92%
HK:0041
Great Eagle Holdings
14.56
4.74
48.33%
HK:0010
Hang Lung Group
14.40
6.73
87.67%
HK:0207
Joy City Property Limited
0.52
0.32
160.00%
HK:0242
Shun Tak Holdings
0.65
-0.05
-7.14%

Henderson Land Development Co Corporate Events

Henderson Land Completes HK$8 Billion Bond Issuance
Jul 16, 2025

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
Jul 8, 2025

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
Jul 8, 2025

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
Jun 13, 2025

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
Jun 3, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025