Hysan Development Co (0014) AI Stock Analysis

• Market Cap: $22.02B
• Dividend Yield: 5.77%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• 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: 2.19
• Enterprise Value/Revenue: 13.29
• Enterprise Value/Gross Profit: 14.75
• Enterprise Value/Ebitda: 17.87
• 1Y Price Target: $21.39
• Price Target Upside: 1.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$22.50 ▲(6.23% Upside)

Hysan Development Co's overall stock score is driven by its strong technical momentum and solid financial stability, despite profitability challenges and valuation concerns. The attractive dividend yield provides some support, but the negative P/E ratio and overbought technical indicators suggest caution.

Positive Factors

High Gross Margin

An 81% gross margin in its property operations indicates strong pricing power and tight control of direct property costs. This durable margin supports healthy cash generation, funds reinvestment in maintenance and tenant services, and cushions leasing income during cyclical rent pressures.

Strong Balance Sheet Equity

A ~66% equity ratio and moderate leverage provide long-term financial resilience, reducing refinancing and interest-rate pressure. This balance-sheet strength allows management to fund selective redevelopments, sustain distributions and absorb shocks in the Hong Kong property cycle without over-reliance on external debt.

Reliable Cash Generation

Consistent FCF growth and a high operating-cash-to-income conversion demonstrate the firm's ability to convert earnings into cash. For a landlord/developer, durable cash generation underpins recurring distributions, asset upkeep and selective capex, supporting operational continuity across medium-term horizons.

Negative Factors

Very Low Net Profitability

A net margin near 1% indicates minimal retained earnings after costs and non-operating items. Persistently low profitability constrains internal funding for capex and redevelopment, increases sensitivity to revenue or cost shocks, and reduces strategic flexibility amid property market volatility.

Revenue Volatility

Fluctuating revenue and a recent decline reduce predictability of rental and development cash flows. For an asset-heavy landlord/developer, inconsistent top-line trends complicate leasing strategies, capital allocation and timing of project rollouts, raising execution risk over coming quarters.

Reliance on Non-operating Cash

A very high FCF-to-net-income ratio and notes of non-operating contributions imply material cash from asset disposals or one-offs. Dependence on such sources undermines the sustainability of dividends and capex funding and increases variability in cash available for core operations over the medium term.

Hysan Development Co Business Overview & Revenue Model

Company Description

Hysan 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 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 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	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: 21.18
• 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 21.18 is above the 20-day moving average (MA) of 20.24, above the 50-day MA of 19.06, and above the 200-day MA of 15.77, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 50.51 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	HK$47.73B	25.71	1.52%	5.92%	-9.76%	-28.29%
1686	66 Neutral	HK$15.82B	16.04	18.68%	2.54%	9.90%	7.68%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0014	61 Neutral	$22.02B	-68.61	-0.48%	5.77%	2.60%	50.07%
1997	60 Neutral	HK$82.52B	-176.02	-0.25%	5.04%	-3.87%	-124.27%
0181	49 Neutral	HK$135.17M	20.00	1.89%	―	-32.86%	―

Hysan Development Co Corporate Events

Hysan Development Sets February Board Meeting to Approve 2025 Results and Consider Second Interim Dividend

Hysan Development Company Limited has scheduled a board meeting for 26 February 2026 to consider and approve the final results of the company and its subsidiaries for the financial year ended 31 December 2025, with a view to publishing the annual figures thereafter. At the same meeting, the board will also consider the payment of a second interim dividend for 2025, signalling the company’s intention to maintain its dividend policy and providing investors with visibility on potential shareholder returns pending full-year results.

The most recent analyst rating on (HK:0014) stock is a Buy with a HK$22.50 price target. To see the full list of analyst forecasts on Hysan Development Co stock, see the HK:0014 Stock Forecast page.

Hysan Tightens Nomination Committee Mandate to Bolster Governance and Diversity

Hysan Development Company Limited has amended and restated the terms of reference for its Nomination Committee, effective 1 January 2026, to strengthen governance around board composition, diversity and succession planning. The updated mandate formalizes the committee’s role in reviewing the Board’s structure, skills mix and independence, overseeing succession planning for directors and senior management, monitoring implementation and effectiveness of nomination and diversity policies (including gender diversity targets at board and workforce levels), and supervising broader human capital matters. It also sets membership requirements—at least three members, a majority being independent non-executive directors and at least one of a different gender—along with rules on quorum, meeting frequency, and in-camera sessions, underscoring Hysan’s focus on board effectiveness and diversity as part of its corporate strategy.

The most recent analyst rating on (HK:0014) stock is a Hold with a HK$19.00 price target. To see the full list of analyst forecasts on Hysan Development Co stock, see the HK:0014 Stock Forecast page.