Hysan Development Co (0014) AI Stock Analysis

• Market Cap: $16.57B
• Dividend Yield: 6.67%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 2.60%
• EPS Growth: 50.07%
• Country: HK
• Employees: 520
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.00
• Shares Outstanding: 1,027,008,200
• 10 Day Avg. Volume: 1,439,746
• 30 Day Avg. Volume: 1,892,161
• PEG Ratio: -3.34
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 3.57
• P/FCF Ratio: 5.24
• Enterprise Value/Market Cap: 3.09
• Enterprise Value/Revenue: 14.10
• Enterprise Value/Gross Profit: 15.65
• Enterprise Value/Ebitda: 18.96
• 1Y Price Target: $16.80
• Price Target Upside: 1.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$17.00 ▲(2.97% Upside)

Hysan Development Co's stock score is primarily influenced by its solid technical analysis, indicating positive market momentum. However, the financial performance shows areas for improvement, particularly in profitability and operational efficiency. The valuation is a concern due to the negative P/E ratio, though the high dividend yield provides some compensation for investors seeking income.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, which can sustain profitability and competitive pricing over the long term.

Solid Equity Position

A solid equity position provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Strong Cash Generation

Consistent growth in free cash flow demonstrates strong cash generation capabilities, supporting reinvestment and shareholder returns.

Negative Factors

Low Net Profit Margin

A low net profit margin reflects profitability challenges, which can hinder the company's ability to generate sufficient returns for shareholders.

Inconsistent ROE

Inconsistent ROE indicates variable returns for shareholders, which can affect investor confidence and the company's ability to attract capital.

Reliance on Non-Operating Cash Flow

Dependence on non-operating cash flow sources can be risky, as it may not be sustainable, impacting long-term financial health.

Hysan Development Co Business Overview & Revenue Model

Company Description

Hysan Development Co. (0014) is a leading property investment and development company based in Hong Kong. Established in 1970, the company primarily focuses on the development and management of prime commercial and retail properties, with a significant presence in the burgeoning real estate market. Its portfolio includes notable assets such as office buildings, shopping centers, and residential projects, catering to a diverse clientele in both the corporate and consumer sectors.

How the Company Makes Money

Hysan Development generates revenue primarily through leasing and property management services associated with its commercial and retail properties. The company earns regular income from long-term leases with corporate tenants and retail operators, which are often structured with rental escalations to ensure growth in revenue over time. Additionally, Hysan engages in property development, which allows it to realize profits from the sale of residential units and commercial spaces. Strategic partnerships with retailers and businesses enhance its revenue streams, while its focus on prime locations contributes to high occupancy rates and premium rental income. The company also benefits from potential capital appreciation of its properties, which can significantly impact its earnings when properties are sold or refinanced.

Hysan Development Co Financial Statement Overview

Summary

Hysan Development Co demonstrates robust cost management with a strong gross profit margin and solid equity position. However, the company faces challenges such as low net profit margin, inconsistent ROE, and reliance on non-operating sources for cash flow, indicating the need for improved operational efficiency and profitability.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.63B	3.41B	3.21B	3.71B	3.69B	3.99B
Gross Profit	3.27B	2.76B	2.59B	3.14B	3.19B	3.50B
EBITDA	2.70B	1.02B	-268.00M	2.84B	2.64B	3.25B
Net Income	-63.00M	35.00M	-872.00M	-1.16B	1.38B	-2.55B
Balance Sheet
Total Assets	115.45B	114.09B	114.53B	119.17B	117.37B	109.75B
Cash, Cash Equivalents and Short-Term Investments	3.60B	2.53B	3.95B	7.77B	8.57B	24.93B
Total Debt	28.64B	26.51B	25.56B	40.66B	29.31B	18.97B
Total Liabilities	38.64B	36.66B	34.84B	35.75B	29.49B	22.31B
Stockholders Equity	75.10B	75.43B	77.41B	70.20B	73.87B	73.68B
Cash Flow
Free Cash Flow	2.06B	2.32B	2.19B	1.50B	1.66B	1.80B
Operating Cash Flow	2.07B	2.36B	2.21B	1.52B	1.73B	1.82B
Investing Cash Flow	-1.87B	-1.29B	2.14B	-8.62B	-7.42B	-6.22B
Financing Cash Flow	1.23B	-2.09B	-4.32B	2.17B	-2.17B	15.19B

Hysan Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 16.51 is above the 20-day moving average (MA) of 16.05, above the 50-day MA of 15.87, and above the 200-day MA of 13.72, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 76.72 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0101	71 Outperform	$43.03B	20.28	1.52%	5.94%	-9.76%	-28.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0014	60 Neutral	$16.57B	-52.25	-0.48%	6.67%	2.60%	50.07%
1686	60 Neutral	€13.62B	13.82	18.68%	2.08%	9.90%	7.68%
1997	54 Neutral	$68.98B	-148.89	-0.25%	5.40%	-3.87%	-124.27%
0181	49 Neutral	HK$115.70M	17.12	1.89%	―	-32.86%	―

Hysan Development Co Corporate Events

Hysan Development Announces Sale of Bamboo Grove Residential Unit

Hysan Development Company Limited announced a connected transaction involving the sale of a residential unit at Bamboo Grove by its wholly-owned subsidiary, Kwong Wan, to a purchaser wholly-owned by Mr. Zhang Yong, an independent non-executive Director. The transaction, valued at HK$53,540,000, is subject to announcement and reporting requirements but exempt from independent shareholders’ approval due to its size under the Listing Rules. This sale aligns with market valuations and reflects the company’s ongoing asset management strategy.

The most recent analyst rating on (HK:0014) stock is a Buy with a HK$18.40 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 Bamboo Grove Residential Units Disposal

Hysan Development Company Limited announced the disposal of residential units at Bamboo Grove, involving transactions with connected persons under the Listing Rules. The sales, totaling HK$133,620,000, are subject to announcement and reporting requirements but exempt from independent shareholders’ approval, reflecting strategic asset management and compliance with regulatory standards.

The most recent analyst rating on (HK:0014) stock is a Buy with a HK$18.40 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 New Lease Agreement with Jebsen & Co.

Hysan Development Company Limited has announced a new lease agreement between its subsidiary Earn Extra and Jebsen & Co. for office premises in Hysan Place, Hong Kong. This new three-year lease, effective from October 2025, replaces an existing lease and is classified as a continuing connected transaction under Hong Kong’s Listing Rules. The transaction is notable for its exemption from certain regulatory requirements, reflecting its strategic importance in maintaining Hysan’s commercial property portfolio and relationships with key stakeholders.

The most recent analyst rating on (HK:0014) stock is a Buy with a HK$18.63 price target. To see the full list of analyst forecasts on Hysan Development Co stock, see the HK:0014 Stock Forecast page.

Hysan Development Co Reports Modest Growth Amid Challenges

Hysan Development Co, a prominent player in Hong Kong’s property investment and management sector, is known for its strategic focus on retail, office, and residential properties, with a significant emphasis on sustainable development.

Hysan Development Announces Interim Dividend for 2025

Hysan Development Company Limited has announced an interim dividend of HKD 0.27 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may influence investor perception positively, reinforcing its stable financial performance in the real estate sector.

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 Reports Growth in Turnover and Profit Amid Strategic Initiatives

Hysan Development Company Limited reported a 2.2% increase in turnover and a 1.2% rise in recurring underlying profit for the first half of 2025. The company’s retail sector saw a 2.1% growth, driven by a rejuvenated portfolio and luxury flagship stores, while the office sector experienced a 0.8% increase in turnover with improved occupancy rates. The Lee Gardens connectivity project is progressing as planned, aiming to enhance the area into a walkable neighborhood. Additionally, Hysan launched an HK$8 billion capital recycling program, maintaining its interim dividend at HK27 cents per share.

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.