Harbour Centre Development Limited (0051) AI Stock Analysis

• Market Cap: HK$3.15B
• Dividend Yield: 1.1%
• Average Volume (3M): 20.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -14.25%
• EPS Growth: 34.57%
• Country: HK
• Employees: 1,200
• Sector: Real Estate
• Sector Strength: 59
• Industry: Real Estate - Development
• EPS (TTM): -0.28
• Shares Outstanding: 708,750,000
• 10 Day Avg. Volume: 10,400
• 30 Day Avg. Volume: 20,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 53 Neutral
• Price Target: HK$4.50 ▼(-1.10% Downside)

The overall stock score is primarily influenced by mixed financial performance, with a strong balance sheet but declining revenues and persistent net losses. Technical analysis suggests potential for price correction due to overbought conditions, while valuation metrics highlight profitability challenges with a negative P/E ratio. The lack of earnings call data and corporate events means these factors do not influence the score.

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: property sales, rental income from investment properties, and hospitality operations. The property development sector focuses on the sale of residential and commercial properties, which constitutes a significant portion of the company's income. The property investment segment provides a steady stream of rental income through leasing office spaces, retail units, and other properties. Additionally, the company's hotel operations contribute to its earnings by offering lodging, dining, and event services. Strategic partnerships and market positioning in prime locations further enhance its revenue-generating capability.

Harbour Centre Development Limited Financial Statement Overview

Summary

Harbour Centre Development Limited shows a mixed financial picture. The income statement reveals declining revenues and persistent net losses, signaling challenges in achieving profitability. The balance sheet is strong with a robust equity base and low leverage, indicating financial health. Cash flows are stable but impacted 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
EBITDA	618.00M	129.00M	116.00M	811.00M	-932.00M
Net Income	-70.00M	-107.00M	-227.00M	32.00M	-1.08B
Balance Sheet
Total Assets	15.80B	16.90B	18.85B	20.53B	23.97B
Cash, Cash Equivalents and Short-Term Investments	431.00M	381.00M	634.00M	1.09B	1.29B
Total Debt	365.00M	526.00M	1.10B	1.45B	2.81B
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: Positive
• Last Price: 4.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 4.55 is above the 20-day moving average (MA) of 4.47, above the 50-day MA of 4.19, and below the 200-day MA of 4.59, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 61.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	63 Neutral	$6.82B	13.55	-1.43%	7.27%	4.64%	-34.02%
0051	53 Neutral	HK$3.15B	―	-1.83%	1.10%	-14.25%	34.57%
FRTCF	―	$307.88M	―	-11.87%	23.12%	―	―
GZUHF	―	$425.47M	―	-71.13%	―	―	―
KWGPF	―	$145.80M	―	-95.62%	―	―	―
SIOPF	―	$394.87M	―	-380.16%	―	―	―
16H0	―	€326.52M	―	-139.73%	―	―	―

Harbour Centre Development Limited Corporate Events

Harbour Centre Development Reports Interim Loss Amid Economic Challenges

Harbour Centre Development Limited reported an underlying net loss of HK$86 million for the first half of 2025, primarily due to higher impairment provisions for its development properties and a revaluation deficit on investment properties. The company did not declare an interim dividend, reflecting the challenging economic conditions impacting its operations. Despite increased occupancy in its Hong Kong hotels, the company faces pressure from subdued consumer spending and competition, particularly in Mainland China, where its hospitality sector continues to struggle. The company’s retail portfolio in Hong Kong also experienced a decline in revenue and operating profit.

Harbour Centre Development Limited Announces Board Meeting for Interim Results

Harbour Centre Development Limited has announced a board meeting scheduled for August 5, 2025, to approve the interim results for the first half of the year and consider an interim dividend. This announcement may impact the company’s financial strategies and shareholder returns, as the interim results and potential dividend payments are key indicators of the company’s performance and financial health.

Harbour Centre Development Issues Profit Warning Amid Increased Losses

Harbour Centre Development Limited has issued a profit warning, indicating a significant increase in losses for the first half of 2025, primarily due to impairment provisions on development properties and revaluation deficits on investment properties. Despite this, the company maintains that its overall financial, business, and trading positions remain healthy, advising shareholders and investors to exercise caution.

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.