Henderson Investment Limited (0097) AI Stock Analysis

• Market Cap: €868.49M
• Dividend Yield: N/A
• Average Volume (3M): 10.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -1.43%
• EPS Growth: 21.29%
• Country: HK
• Employees: 866
• Sector: Financial
• Sector Strength: 70
• Industry: Department Stores
• EPS (TTM): -0.01
• Shares Outstanding: 3,047,327,400
• 10 Day Avg. Volume: 1,647,793
• 30 Day Avg. Volume: 10,480,743
• PEG Ratio: -0.03
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 1.81
• 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: 54 Neutral
• Price Target: ―

The overall stock score for Henderson Investment Limited is impacted significantly by the weak financial performance, characterized by declining revenue, profitability issues, and liquidity concerns. Despite positive technical trends suggesting short-term momentum, the valuation remains unattractive due to ongoing financial difficulties. Strategic improvements in financial management are essential for enhancing the company's market perception and investor confidence.

Henderson Investment Limited Business Overview & Revenue Model

Company Description

Henderson Investment Limited, an investment holding company, engages in the operation of department stores in Hong Kong. It operates five department stores under the Citistore name; five household specialty stores under the name Citilife; two department stores-cum-supermarkets under the APITA name; and two supermarkets under the UNY name. The company is based in Central, Hong Kong. Henderson Investment Limited is a subsidiary of Henderson Land Development Company Limited.

How the Company Makes Money

Henderson Investment generates revenue primarily through rental income from its property portfolio, which includes commercial office spaces and residential units. Additionally, the company earns income from its hotel operations, drawing revenue from room bookings, dining services, and event hosting. The company may also engage in property development projects, selling completed units or properties for profit. Key revenue streams are bolstered by the company's strategic partnerships with local and international firms in real estate development and investment, as well as its ability to leverage market trends to maximize returns on its investments.

Henderson Investment Limited Financial Statement Overview

Summary

Henderson Investment Limited faces several financial challenges across its income statement, balance sheet, and cash flow metrics. Persistent revenue decline, profitability issues, and increased leverage pose significant risks. The lack of cash flow generation exacerbates the financial strain, demanding strategic initiatives to stabilize and improve financial performance. The company needs to address these challenges to enhance its financial standing and investor confidence.

Income Statement

The income statement reveals significant challenges, with declining revenue and deteriorating profitability. The gross profit margin and net profit margin have both decreased notably, indicating reduced efficiency and profitability. The company has experienced losses in recent years, with a sharp decline in EBIT and EBITDA margins. These factors reflect a struggling financial position in its income generation capacity.

Balance Sheet

The balance sheet shows moderate stability but highlights concerns over rising debt levels. The debt-to-equity ratio has increased, reflecting higher leverage and potential financial risk. The equity ratio indicates a reasonable level of owner financing, but declining stockholders' equity raises concerns about the company's ability to withstand financial pressures. Overall, the balance sheet suggests a need for cautious financial management.

Cash Flow

The cash flow statement indicates significant financial strain, with zero operating cash flow and free cash flow in the latest period. The sharp decline in free cash flow growth and the inability to generate positive cash flows from operations highlight liquidity concerns. The financial health is under stress, requiring immediate attention to improve cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	1.53B	1.55B	1.79B	1.77B	1.83B
Gross Profit	24.00M	7.00M	69.00M	163.00M	188.00M	248.00M
EBITDA	-35.00M	-51.00M	246.00M	323.00M	333.00M	452.00M
Net Income	-97.00M	-125.00M	-72.00M	-5.00M	34.00M	127.00M
Balance Sheet
Total Assets	2.17B	2.28B	2.54B	2.47B	2.30B	2.43B
Cash, Cash Equivalents and Short-Term Investments	116.00M	154.00M	85.00M	260.00M	360.00M	415.00M
Total Debt	568.00M	666.00M	924.00M	745.00M	502.00M	674.00M
Total Liabilities	1.15B	1.22B	1.36B	1.20B	972.00M	1.08B
Stockholders Equity	1.02B	1.05B	1.17B	1.27B	1.32B	1.35B
Cash Flow
Free Cash Flow	192.00M	177.00M	147.00M	231.00M	278.00M	351.00M
Operating Cash Flow	200.00M	203.00M	209.00M	315.00M	326.00M	396.00M
Investing Cash Flow	-4.00M	-25.00M	-57.00M	-79.00M	-43.00M	-19.00M
Financing Cash Flow	-153.00M	-139.00M	-327.00M	-336.00M	-338.00M	-305.00M

Henderson Investment Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0097, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.21, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0097.

Henderson Investment Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0825	57 Neutral	HK$548.00M	21.67	0.72%	―	-12.99%	89.87%
0097	54 Neutral	€868.49M	―	-9.44%	―	-1.43%	21.29%
0312	45 Neutral	HK$227.01M	-11.52	-4.50%	―	-0.83%	93.83%
0984	42 Neutral	HK$109.20M	-0.28	―	―	-3.03%	-36.45%
0980	41 Neutral	HK$614.03M	-1.59	―	―	-12.42%	62.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Henderson Investment Limited Corporate Events

Henderson Investment Limited Announces 2025 AGM and Key Resolutions

Henderson Investment Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 3, 2025, at the Four Seasons Hotel in Hong Kong. Key agenda items include the review of financial statements, re-election of directors, re-appointment of auditors, and the consideration of resolutions for share buybacks and issuing additional shares. The resolutions, if passed, would allow the company to buy back up to 10% of its shares and issue up to 20% more shares, potentially impacting its market operations and shareholder value.

Henderson Investment Limited Announces Change of Share Registrar

Henderson Investment Limited has announced a change in its share registrar, effective from April 7, 2025. The company will transition from Tricor Standard Limited to Tricor Investor Services Limited for the handling of share registration and transfer processes. This change is expected to streamline operations related to share management, potentially impacting stakeholders by altering the procedural aspects of share transfers and collections.

Henderson Investment Limited Announces Board Composition and Committee Roles

Henderson Investment Limited has announced the composition of its board of directors, which includes a mix of executive and independent non-executive directors. The board is led by Dr. Lee Ka Shing as Chairman and Managing Director, with Dr. Lee Ka Kit and Dr. Lam Ko Yin, Colin serving as Vice Chairmen. The company has also detailed the roles and functions of its board committees, including the Audit, Remuneration, Nomination, Corporate Governance, and Whistleblowing Committees. This announcement reflects the company’s commitment to structured governance and transparency in its operations, potentially strengthening its market position and stakeholder confidence.

Henderson Investment Limited Faces Increased Losses Amid Retail Sector Challenges

Henderson Investment Limited reported a significant increase in its annual loss, reaching HK$125 million for 2024, primarily due to accounting treatments related to lease renewals and rising outbound travel affecting local retail. The company decided not to distribute a final dividend due to these losses. The retail sector in Hong Kong faced a downturn, with a 7.3% decrease in total retail sales, impacting the company’s operations. Despite these challenges, Henderson Investment Limited has been working on integrating its subsidiaries, Citistore and Unicorn, to improve efficiency and expand its customer base through loyalty program integration. Citistore has actively engaged in promotional activities to boost brand awareness and operational efficiency.

Henderson Investment Limited Appoints Helen Zee as Independent Director

Henderson Investment Limited has announced the appointment of Ms. Helen Zee as an Independent Non-executive Director and a member of the Nomination Committee, effective March 21, 2025. Ms. Zee brings nearly two decades of experience in investment banking and corporate finance, having held senior roles at Haitong International Capital Limited and serving as an independent director for several listed companies. Her appointment is expected to strengthen the company’s governance and strategic oversight, with her extensive experience in public service and corporate governance providing valuable insights.

Henderson Investment Secures New Tenancy for UNY Store

Henderson Investment Limited, through its wholly-owned subsidiary Unicorn, has entered into a tenancy agreement with Link Properties for premises at Lok Fu Estate, Kowloon, Hong Kong. This agreement, effective from July 2025 to June 2028, involves a base rent of HK$1,704,294 per month and additional charges for air-conditioning, management, and government rates. The transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, impacting the company’s financial statements by recognizing a right-of-use asset valued at approximately HK$57 million. This strategic move allows Unicorn to continue operating its department store-cum-supermarket, UNY, at the same location, potentially strengthening its market presence.

Henderson Investment Limited Issues Profit Warning with Increased Losses Expected

Henderson Investment Limited has issued a profit warning, expecting a significant increase in losses for the year ending December 2024, with an anticipated loss of HK$125 million compared to HK$72 million in 2023. This projected increase is largely due to the cumulative effects of renewing shop lease agreements and the adverse impact of rising outbound travel and cross-border shopping on the Group’s financial performance.