Harbour Centre Development Limited (0051) AI Stock Analysis

• Market Cap: HK$3.10B
• Dividend Yield: 1.16%
• Average Volume (3M): 11.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -9.42%
• EPS Growth: -153.41%
• Country: HK
• Employees: 1,200
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.28
• Shares Outstanding: 708,750,000
• 10 Day Avg. Volume: 9,800
• 30 Day Avg. Volume: 11,310
• PEG Ratio: 1.48
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 16.67
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$4.50 ▲(4.41% Upside)

Harbour Centre Development Limited's overall stock score is primarily influenced by its strong balance sheet and stable cash flows, which are offset by declining revenues and persistent net losses. Technical analysis indicates neutral momentum, while valuation is hindered by a negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance Sheet Strength

A high equity ratio and low leverage indicate financial stability, providing the company with a solid foundation to weather economic fluctuations and invest in growth opportunities.

Gross Profit Margin Improvement

Improved gross profit margins suggest effective cost management, which can enhance profitability and provide more resources for strategic investments and debt reduction.

Cash Flow Stability

Stable free cash flow indicates efficient operations and the ability to fund capital expenditures and service debt, supporting long-term financial health.

Negative Factors

Declining Revenue

Decreasing revenue signals potential challenges in market demand or competitive positioning, which could hinder future growth and profitability.

Net Losses

Ongoing net losses can erode shareholder value and limit the company's ability to reinvest in its business, posing a risk to long-term sustainability.

Negative Net Profit Margin

A negative net profit margin reflects inefficiencies and could impact the company's ability to generate sufficient returns, affecting long-term viability.

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 primarily through rental income from its commercial and retail properties. The company leases space to various tenants, including retail brands and corporate offices, which provides a steady stream of cash flow. Additionally, the firm may engage in property development projects, where it earns profits from the sale of newly developed properties or through joint ventures with other developers. The company's strategic partnerships with local and international businesses enhance its market reach and contribute to its earnings through synergies and shared resources. Overall, the combination of rental income and property sales forms the core of its revenue model.

Harbour Centre Development Limited Financial Statement Overview

Summary

The company exhibits a mixed financial performance. While the balance sheet is strong with high equity and low leverage, the income statement shows declining revenues and persistent net losses, impacting profitability. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.35B	1.58B	1.14B	4.48B	3.31B
Gross Profit	677.00M	790.00M	354.00M	489.00M	1.10B	915.00M
EBITDA	498.00M	618.00M	129.00M	116.00M	737.00M	-932.00M
Net Income	-261.00M	-70.00M	-107.00M	-197.00M	-24.00M	-1.12B
Balance Sheet
Total Assets	16.09B	15.80B	16.90B	18.85B	20.53B	23.97B
Cash, Cash Equivalents and Short-Term Investments	596.00M	431.00M	381.00M	634.00M	1.09B	1.29B
Total Debt	429.00M	365.00M	526.00M	1.10B	1.45B	2.81B
Total Liabilities	1.39B	1.47B	2.46B	3.52B	4.59B	8.04B
Stockholders Equity	14.60B	14.22B	14.33B	15.13B	15.62B	15.48B
Cash Flow
Free Cash Flow	286.00M	212.00M	253.00M	-153.00M	1.10B	163.00M
Operating Cash Flow	293.00M	224.00M	278.00M	-147.00M	1.13B	170.00M
Investing Cash Flow	42.00M	-12.00M	44.00M	175.00M	243.00M	152.00M
Financing Cash Flow	-7.00M	-154.00M	-567.00M	-394.00M	-1.61B	-1.00B

Harbour Centre Development Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.31 is above the 20-day moving average (MA) of 4.30, above the 50-day MA of 4.31, and above the 200-day MA of 4.26, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0051	54 Neutral	HK$3.10B	-11.90	-1.83%	1.16%	-9.42%	-153.41%
0035	45 Neutral	$2.29B	-1.54	-14.14%	15.28%	-9.95%	-77.31%
1396	44 Neutral	HK$6.60B	118.48	11.82%	―	-28.71%	―
2777	41 Neutral	HK$1.91B	-0.09	-89.23%	―	-71.42%	-11.91%
0813	38 Underperform	$1.66B	-0.03	―	―	-22.55%	30.07%
1813	37 Underperform	HK$543.21M	-0.26	-55.49%	―	-29.26%	88.87%

Harbour Centre Development Limited Corporate Events

HCDL Enters New Property Services Agreement to Enhance Operational Efficiency

Harbour Centre Development Limited, along with Wharf Group and WREIC Group, has entered into a New Master Property Services Agreement effective from January 1, 2026, to December 31, 2028. This agreement aims to regulate ongoing connected transactions related to property services among members of the WAC Group. The agreement is crucial for maintaining operational continuity and compliance with the Listing Rules, although it is exempt from certain approval requirements. This strategic move is expected to streamline property service operations across the group’s diverse real estate portfolio, potentially enhancing efficiency and market positioning.

The most recent analyst rating on (HK:0051) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Harbour Centre Development Limited stock, see the HK:0051 Stock Forecast page.