Harbour Centre Development Limited (0051) AI Stock Analysis

• Market Cap: HK$2.79B
• Dividend Yield: 1.27%
• Average Volume (3M): 35.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -14.25%
• EPS Growth: 34.57%
• Country: HK
• Employees: 1,200
• Sector: Real Estate
• Sector Strength: 73
• Industry: Real Estate - Development
• EPS (TTM): -0.10
• Shares Outstanding: 708,750,000
• 10 Day Avg. Volume: 47,900
• 30 Day Avg. Volume: 35,200
• PEG Ratio: 0.03
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ―

Harbour Centre Development Limited faces challenges with declining revenues and ongoing net losses, negatively impacting its financial performance. Despite a strong balance sheet with low leverage, bearish technical indicators suggest downward pressure on stock price. Valuation is unattractive due to negative earnings. The company's ability to enhance profitability and reverse negative trends will be crucial for future performance.

Harbour Centre Development Limited Business Overview & Revenue Model

Company Description

Harbour Centre Development Limited, an investment holding company, engages in the hotel ownership, and property investment and development activities in Hong Kong, Mainland China, and internationally. It engages in the acquisition, development, and sale of trading properties, as well as invests in and leases properties. The company also operates The Murray hotel, Marco Polo Hongkong Hotel, Marco Polo Changzhou hotel, and Niccolo Suzhou. In addition, it provides finance and bank deposit services; and engages in the equity investment in global capital markets. The company is based in Kowloon, Hong Kong.

How the Company Makes Money

Harbour Centre Development Limited generates revenue through several key streams. The primary source of income comes from the sale and leasing of residential and commercial properties. The company develops properties and sells them to generate revenue, while also leasing a portion of its portfolio to earn rental income. Additionally, the company invests in premium retail spaces that attract high-end tenants, thereby securing stable and recurring rental income. Harbour Centre Development Limited also benefits from strategic partnerships and joint ventures that enhance its development capabilities and market reach. These collaborations often lead to increased revenue through shared investments in large-scale projects. The company's financial success is also supported by its ability to manage and optimize the value of its investment properties, ensuring long-term growth and sustainability.

Harbour Centre Development Limited Financial Statement Overview

Summary

Mixed financial performance with declining revenues and persistent net losses impacting profitability. However, strong balance sheet with high equity ratio and low leverage indicates financial stability. Cash flows are stable but affected by ongoing losses.

Income Statement

The company has shown a decline in total revenue over the past year, with a decrease from $1,579 million in 2023 to $1,354 million in 2024. While the gross profit margin improved due to better cost management (from 22.4% in 2023 to 58.3% in 2024), the net profit margin remains negative, indicating ongoing profitability challenges. The EBIT and EBITDA margins are moderately healthy, but the overall negative net income affects the score.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio of 89.97% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.03, showcasing limited leverage, which is a positive sign. Return on equity is negative due to net losses, posing a risk to shareholder value.

Cash Flow

The company has managed steady free cash flow despite fluctuations in operating cash flow, with a slight decline in free cash flow from $253 million in 2023 to $212 million in 2024. The operating cash flow to net income ratio indicates efficiency in converting net income into cash, though the negative net income impacts this assessment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.35B	1.58B	1.14B	4.48B	3.31B
	Gross Profit
790.00M	354.00M	489.00M	1.10B	915.00M
	EBIT
404.00M	408.00M	-179.00M	451.00M	-165.00M
	EBITDA
618.00M	129.00M	116.00M	811.00M	-932.00M
	Net Income Common Stockholders
-70.00M	-107.00M	-227.00M	32.00M	-1.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
431.00M	381.00M	634.00M	1.09B	1.29B
	Total Assets
15.80B	16.90B	18.85B	20.53B	23.97B
	Total Debt
365.00M	526.00M	1.10B	1.45B	2.81B
	Net Debt
-66.00M	145.00M	464.00M	361.00M	1.52B
	Total Liabilities
1.47B	2.46B	3.52B	4.59B	8.04B
	Stockholders Equity
14.22B	14.33B	15.13B	15.62B	15.48B
Cash Flow		Free Cash Flow
212.00M	253.00M	-153.00M	1.10B	163.00M
	Operating Cash Flow
224.00M	278.00M	-147.00M	1.13B	170.00M
	Investing Cash Flow
-12.00M	44.00M	175.00M	243.00M	152.00M
	Financing Cash Flow
-154.00M	-567.00M	-394.00M	-1.61B	-1.00B

Harbour Centre Development Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0051, the sentiment is Negative. The current price of 3.93 is below the 20-day moving average (MA) of 3.96, below the 50-day MA of 3.96, and below the 200-day MA of 4.71, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0051.

Harbour Centre Development Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
0051	52 Neutral	HK$2.79B	―	-0.49%	1.27%	-14.25%	34.57%
FRTCF		$366.31M	―	-6.89%	6.68%	―	―
GZUHF		$434.99M	―	-71.13%	―	―	―
KWGPF		$134.92M	―	-95.62%	―	―	―
SIOPF		$352.55M	―	-380.16%	―	―	―
16H0		€340.16M	―	-139.73%	―	―	―

Harbour Centre Development Limited Corporate Events

Harbour Centre Development Limited Successfully Passes All AGM Resolutions

Harbour Centre Development Limited held its Annual General Meeting on 7 May 2025, where all proposed resolutions were passed with significant support. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share buy-back and issuance. The AGM saw active participation from shareholders, with no restrictions or abstentions affecting the voting process.

Harbour Centre Development Limited Announces Board Composition

Harbour Centre Development Limited has announced the composition of its board of directors and the membership of its board committees. The board includes a mix of executive and independent non-executive directors, with Stephen T. H. Ng serving as Chairman. The announcement provides clarity on the roles within the board, which could impact the company’s governance and strategic direction.

Harbour Centre Development Limited Announces AGM and Key Resolutions

Harbour Centre Development Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 7, 2025, at the Marco Polo Hongkong Hotel. The meeting will address key agenda items including the adoption of financial statements for the year ending December 31, 2024, re-election of retiring directors, and re-appointment of auditors. Additionally, resolutions will be considered regarding the company’s share buy-back program and the issuance of additional shares, which could impact shareholder value and the company’s market operations.

Harbour Centre Development to Forfeit Unclaimed 2018 Dividends

Harbour Centre Development Limited announced the forfeiture of unclaimed dividends from 2018, which will revert to the company if not claimed by April 24, 2025. This move impacts shareholders who have yet to claim their dividends, highlighting the importance of timely financial management for stakeholders.