Hysan Development Co (0014) AI Stock Analysis

• Market Cap: $15.34B
• Dividend Yield: 10.76%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 438.1
• Beta (1Y): 0.70
• Revenue Growth: 3.08%
• EPS Growth: N/A
• Country: HK
• Employees: 520
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): -0.38
• Shares Outstanding: 1,027,008,200
• 10 Day Avg. Volume: 2,502,037
• 30 Day Avg. Volume: 2,140,394
• PEG Ratio: 0.12
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.35
• 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: $18.60
• Price Target Upside: 23.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$16.00 ▲(6.24%Upside)

Hysan Development Co's strengths lie in its strong gross profit margin and technical momentum, suggesting operational efficiency and positive market sentiment. However, high P/E ratio and overbought technical indicators pose risks, while the attractive dividend yield offers some support.

Positive Factors

Portfolio Expansion

Portfolio expansion and rejuvenation works underpinned rental growth despite market challenges.

Rental Income

Rental earnings to improve with portfolio expansion and rejuvenation works.

Valuation Potential

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 Business Overview & Revenue Model

Company Description

Hysan Development Company Limited is a leading property investment, management, and development company based in Hong Kong. Established in 1923, the company primarily operates in the commercial, retail, and residential sectors, with a significant presence in the Causeway Bay area. It focuses on creating sustainable and vibrant communities through its portfolio of high-quality properties, including shopping malls, office spaces, and residential complexes.

How the Company Makes Money

Hysan 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.41B	3.21B	3.71B	3.69B	3.99B
Gross Profit	2.76B	2.59B	3.14B	3.19B	3.50B
EBITDA	1.02B	-268.00M	-167.00M	2.95B	-1.47B
Net Income	35.00M	-872.00M	-1.16B	1.38B	-2.55B
Balance Sheet
Total Assets	114.09B	114.53B	119.17B	117.37B	109.75B
Cash, Cash Equivalents and Short-Term Investments	2.53B	3.95B	7.77B	8.57B	24.93B
Total Debt	26.51B	25.56B	40.66B	29.31B	29.63B
Total Liabilities	36.66B	34.84B	45.98B	40.15B	32.96B
Stockholders Equity	75.43B	77.41B	70.20B	73.87B	73.68B
Cash Flow
Free Cash Flow	2.32B	2.19B	1.50B	1.66B	1.80B
Operating Cash Flow	2.36B	2.21B	1.52B	1.73B	1.82B
Investing Cash Flow	-1.29B	2.14B	-12.10B	-7.42B	-6.22B
Financing Cash Flow	-2.09B	-4.32B	6.53B	-2.17B	15.19B

Hysan Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.06
• 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:0014, the sentiment is Positive. The current price of 15.06 is above the 20-day moving average (MA) of 14.06, above the 50-day MA of 13.31, and above the 200-day MA of 12.19, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 72.04 is Negative, neither overbought nor oversold. The STOCH value of 93.27 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0101	77 Outperform	$38.37B	16.51	1.63%	10.43%	9.02%	-47.36%
1686	74 Outperform	€18.74B	19.43	19.23%	1.41%	12.91%	5.31%
0014	62 Neutral	$15.34B	438.12	0.05%	10.76%	3.08%	―
Sector *	61 Neutral	AU$2.87B	8.06	4.17%	5.05%	17.25%	41.52%
1997	59 Neutral	$73.17B	82.11	0.47%	4.98%	-2.96%	-81.31%
1821	50 Neutral	HK$54.97B	―	-10.33%	1.93%	-23.86%	-472.97%
0181	45 Neutral	HK$87.06M	―	-9.14%	―	-32.00%	-45.23%

Hysan Development Co Corporate Events

Hysan Development Announces AGM Results and Board Changes

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

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.