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Hysan Development Co (HK:0014)
:0014

Hysan Development Co (0014) AI Stock Analysis

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HK

Hysan Development Co

(OTC:0014)

Rating:63Neutral
Price Target:
HK$14.00
▼(-0.28%Downside)
Hysan Development Co's overall stock score is primarily influenced by its solid technical analysis indicators and strong dividend yield. However, the high P/E ratio and financial performance challenges, such as low net profit margin and reliance on non-operating cash flow sources, weigh on the score. The lack of earnings call and corporate events data means these factors are excluded from consideration.
Positive Factors
Portfolio Expansion
Rejuvenation works and portfolio expansion to bode well for long-term rental value.
Rental Growth
Rental earnings to improve with portfolio expansion and rejuvenation works.
Valuation
The stock is trading at a 79% discount to our current assessed NAV, indicating potential for growth.
Negative Factors
Interest Rates
Any prolonged high-interest rate environment could adversely affect its earnings and valuation.
Leasing Demand
Any further deterioration in leasing demand for office and retail properties in Causeway Bay could drag Hysan Development’s earnings and share price performance.

Hysan Development Co (0014) vs. iShares MSCI Hong Kong ETF (EWH)

Hysan Development Co Business Overview & Revenue Model

Company DescriptionHysan is a leading property investment, management and development company in Hong Kong, with a portfolio of more than 4 million square feet of high-quality office, retail and residential properties. Operating primarily in the city's prime retail/office district of Causeway Bay, we are focused on delighting our customers and providing investors with outstanding returns.
How the Company Makes MoneyHysan Development Co makes money primarily through its property leasing and management activities. The company's revenue streams include rental income from its extensive portfolio of retail, office, and residential properties, particularly in premium locations like Causeway Bay. Hysan's strategic focus on high-traffic, high-demand areas allows it to command premium rental rates. Additionally, the company generates income through property development and sales, although this is less frequent compared to its rental operations. Hysan's partnerships and joint ventures with other property developers and investors also contribute to its earnings by expanding its project portfolio and leveraging shared expertise and resources.

Hysan Development Co Financial Statement Overview

Summary
Hysan Development Co shows strengths in maintaining a strong gross profit margin and equity position, indicating robust cost management and financial stability. However, challenges like low net profit margin, inconsistent ROE, and reliance on non-operating cash flow sources highlight areas for improvement. The company needs to focus on enhancing operational efficiency and profitability to sustain financial health.
Income Statement
55
Neutral
Hysan Development Co has seen fluctuations in its revenue over the years, with a noticeable decline recently. The gross profit margin remains strong at 81.05%, indicating efficient cost management. However, net profit margin is weak at 1.03%, reflecting profitability challenges. The absence of EBIT in the latest report and negative EBITDA in some years suggest operational inefficiencies impacting overall profitability.
Balance Sheet
70
Positive
The company maintains a solid equity position with an equity ratio of 66.10%, indicating financial stability. However, the debt-to-equity ratio is 0.35, suggesting moderate leverage which could pose risks if not managed properly. Return on equity shows variability, indicating inconsistent returns for shareholders.
Cash Flow
60
Neutral
Free cash flow has shown consistent growth, with a notable increase of 6.02% recently, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is high at 67.31, indicating effective conversion of income into cash. However, free cash flow to net income ratio is very high, suggesting reliance on non-operating sources for cash flow.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.41B3.21B3.71B3.69B3.99B
Gross Profit
2.76B2.59B3.14B3.19B3.50B
EBIT
2.46B2.28B2.81B2.92B3.23B
EBITDA
1.02B-268.00M-167.00M2.95B-1.47B
Net Income Common Stockholders
35.00M-872.00M-1.16B1.38B-2.55B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.53B3.95B7.77B8.57B24.93B
Total Assets
114.09B114.53B119.17B117.37B109.75B
Total Debt
26.51B25.56B40.66B29.31B29.63B
Net Debt
24.95B22.98B38.10B22.78B15.24B
Total Liabilities
36.66B34.84B45.98B40.15B32.96B
Stockholders Equity
75.43B77.41B70.20B73.87B73.68B
Cash FlowFree Cash Flow
2.32B2.19B1.50B1.66B1.80B
Operating Cash Flow
2.36B2.21B1.52B1.73B1.82B
Investing Cash Flow
-1.29B2.14B-12.10B-7.42B-6.22B
Financing Cash Flow
-2.09B-4.32B6.53B-2.17B15.19B

Hysan Development Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.04
Price Trends
50DMA
12.64
Positive
100DMA
12.11
Positive
200DMA
11.87
Positive
Market Momentum
MACD
0.22
Negative
RSI
78.24
Negative
STOCH
89.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0014, the sentiment is Positive. The current price of 14.04 is above the 20-day moving average (MA) of 12.99, above the 50-day MA of 12.64, and above the 200-day MA of 11.87, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 78.24 is Negative, neither overbought nor oversold. The STOCH value of 89.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0014.

Hysan Development Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
HK$14.42B411.730.05%8.86%3.08%
61
Neutral
$2.83B10.920.41%8438.90%5.75%-21.03%
$3.86B13.611.63%8.24%
$7.73B61.770.47%6.84%
DEVI6
€1.91B15.9119.23%1.72%
50
Neutral
HK$54.54B-10.33%1.95%-23.86%-472.97%
45
Neutral
HK$83.62M-9.14%-32.00%-45.23%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0014
Hysan Development Co
14.04
3.39
31.78%
HLPPF
Hang Lung Properties
0.81
-0.06
-6.90%
WRFRF
Wharf Real Estate Investment Co
2.32
-0.35
-13.11%
DE:VI6
Sunevision Holdings Ltd.
0.77
0.48
165.52%
HK:0181
Fujian Holdings Limited
0.07
>-0.01
-12.50%
HK:1821
ESR Group Limited
12.84
1.94
17.80%

Hysan Development Co Corporate Events

Hysan Development Announces AGM Results and Board Changes
Jun 5, 2025

Hysan Development Company Limited announced the results of its 2025 Annual General Meeting, where all proposed resolutions were passed by shareholders. Significant changes in the board’s composition were made, including the retirement of Mr. Poon Chung Yin Joseph as an Independent Non-Executive Director. Mr. Churchouse Frederick Peter and Ms. Wong Ching Ying Belinda were appointed to new roles within the board committees. These changes are expected to impact the company’s governance and strategic direction.

The most recent analyst rating on (HK:0014) stock is a Sell with a HK$13.00 price target. To see the full list of analyst forecasts on Hysan Development Co stock, see the HK:0014 Stock Forecast page.

Hysan Development Announces Board Composition and Roles
Jun 5, 2025

Hysan Development Company Limited has announced the composition of its board of directors and their respective roles within the company’s board committees. This announcement provides clarity on the governance structure and highlights the involvement of independent non-executive directors, which is crucial for maintaining transparency and accountability in the company’s operations.

The most recent analyst rating on (HK:0014) stock is a Sell with a HK$13.00 price target. To see the full list of analyst forecasts on Hysan Development Co stock, see the HK:0014 Stock Forecast page.

Hysan Development Announces 2025 AGM with Key Resolutions
Mar 28, 2025

Hysan Development Company Limited announced its upcoming Annual General Meeting to be held on June 5, 2025. The meeting will address several key resolutions, including the re-election of directors, reappointment of auditors, and granting of mandates for share allotment and repurchase. These resolutions aim to enhance the company’s operational flexibility and shareholder value, potentially impacting its market positioning and stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.