Hysan Development Co (0014) AI Stock Analysis

• Market Cap: $13.41B
• Dividend Yield: 8.86%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 383.0
• Beta (1Y): 0.69
• Revenue Growth: 3.08%
• EPS Growth: N/A
• Country: HK
• Employees: 520
• Sector: Real Estate
• Sector Strength: 70
• Industry: Real Estate - Services
• EPS (TTM): -0.38
• Shares Outstanding: 1,027,008,200
• 10 Day Avg. Volume: 1,389,014
• 30 Day Avg. Volume: 1,966,554
• PEG Ratio: 3.58
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.79
• 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: $12.98
• Price Target Upside: 0.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Hysan Development Co's overall score of 60 reflects strong technical momentum and solid financial stability through a strong equity position and gross profit margin. However, challenges in profitability and valuation, highlighted by a very high P/E ratio and low net profit margin, weigh down the score. The company should focus on enhancing operational efficiency and managing its valuation to improve its overall attractiveness to investors.

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 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
	EBIT
2.46B	2.28B	2.81B	2.92B	3.23B
	EBITDA
1.02B	-268.00M	-167.00M	2.95B	-1.47B
	Net Income Common Stockholders
35.00M	-872.00M	-1.16B	1.38B	-2.55B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.53B	3.95B	7.77B	8.57B	24.93B
	Total Assets
114.09B	114.53B	119.17B	117.37B	109.75B
	Total Debt
26.51B	25.56B	40.66B	29.31B	29.63B
	Net Debt
24.95B	22.98B	38.10B	22.78B	15.24B
	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: 12.90
• 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 12.9 is above the 20-day moving average (MA) of 12.57, above the 50-day MA of 12.55, and above the 200-day MA of 11.62, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 68.77 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
0113	76 Outperform	$2.64B	10.27	7.44%	9.38%	-12.74%	-17.17%
0083	70 Outperform	$73.75B	19.40	2.17%	7.21%	-30.38%	-43.73%
Sector *	60 Neutral	$2.77B	10.47	0.42%	8531.49%	6.23%	-16.09%
0014	60 Neutral	$13.41B	382.99	0.05%	8.86%	3.08%	―
0084	60 Neutral	HK$90.89M	0.20	70.23%	―	-8.35%	―
0004	60 Neutral	HK$60.57B	―	-2.30%	2.28%	-36.07%	-441.20%
0017	51 Neutral	HK$12.68B	―	-10.34%	9.90%	-56.64%	-3398.20%

Hysan Development Co Corporate Events

Hysan Development Announces 2025 AGM with Key Resolutions

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.

Hysan Development Publishes 2024 Financial Statements to Boost Fund-Raising Efforts

Hysan Development Company Limited has published its audited consolidated financial statements for the year ended December 31, 2024. This move aims to facilitate potential future fund-raising activities in the debt capital markets, indicating a strategic focus on strengthening financial operations and market positioning.

Hysan Development Announces Second Interim Dividend for 2024

Hysan Development Company Limited announced a second interim ordinary dividend of HKD 0.81 per share for the financial year ending December 31, 2024. The dividend reflects the company’s ongoing commitment to providing returns to its shareholders, with payment scheduled for March 19, 2025, potentially impacting the company’s financial strategy and shareholder relations positively.

Hysan Development Reports 6.2% Turnover Increase Amid Retail Growth

Hysan Development Company Limited announced a 6.2% increase in turnover to HK$3,409 million for the year ended 31 December 2024, with a 6.8% rise in Recurring Underlying Profit to HK$1,956 million. This growth was driven by an increase in retail turnover and improved rental income despite challenging market conditions. The retail portfolio saw a 9.5% growth in turnover, although office turnover slightly decreased by 1.5%. A second interim dividend of HK81 cents per share was declared. The completion of Lee Garden Eight and its integrated walkway system is anticipated for the second half of 2026, potentially enhancing connectivity and property appeal.