Henderson Investment Limited (0097) AI Stock Analysis

• Market Cap: HK$542.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -1.43%
• EPS Growth: 21.29%
• Country: HK
• Employees: 866
• Sector: Real Estate
• Sector Strength: 53
• Industry: Department Stores
• EPS (TTM): -0.01
• Shares Outstanding: 3,047,327,400
• 10 Day Avg. Volume: 375,495
• 30 Day Avg. Volume: 1,047,836
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.17 ▼(-6.67% Downside)

Henderson Investment Limited's overall stock score is primarily impacted by its poor financial performance and valuation. The company faces significant financial challenges, including declining revenue, profitability issues, and liquidity concerns. Technical analysis also indicates bearish momentum, further contributing to the low score. The lack of earnings call data and corporate events does not alter the assessment.

Positive Factors

Diversified property and hotel operations

A diversified mix of property investment, development and hotel operations creates multiple durable revenue streams. This reduces reliance on a single segment, smoothing cash flows across market cycles and supporting long-term asset redeployment and portfolio optimization strategies.

Recurring rental income base

A core rental income base from commercial and residential assets provides stable, recurring cash inflows that support operating coverage and portfolio maintenance. Over months this steady rent roll underpins resilience versus cyclical one‑time sales revenues from developments.

Moderate balance sheet stability / owner financing

Reported moderate balance sheet stability and a reasonable equity ratio imply owner financing provides a buffer against market stress. This structural capital base helps fund development pipelines and absorb valuation shocks, supporting medium‑term strategic flexibility.

Negative Factors

Declining revenue and margins

Sustained declines in revenue and compressed gross and net margins erode internal cash generation and operational leverage. Over several months this reduces reinvestment capacity, weakens competitiveness on new developments, and impairs ability to restore profitability.

Zero operating and free cash flow

Absent operating and free cash flow is a material structural weakness: it limits funding for capex, debt servicing and distributions without external financing. Persisting zero cash generation forces reliance on refinancing or asset sales, increasing execution and liquidity risk.

Rising leverage and debt concerns

An increasing debt‑to‑equity ratio and rising leverage raise fixed charge burdens and reduce balance sheet flexibility. Over the medium term higher leverage increases vulnerability to rate shocks, constrains capital allocation to growth projects, and heightens refinancing risk.

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 significant financial challenges, with declining revenue, deteriorating profitability, and increased leverage. The income statement shows reduced efficiency and profitability, while the balance sheet highlights rising debt levels. The cash flow statement indicates liquidity concerns, with zero operating and free cash flow, necessitating immediate attention to improve financial health.

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: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 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:0097, the sentiment is Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 30.95 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0825	50 Neutral	HK$472.12M	19.00	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$106.60M	-0.28	―	―	-3.03%	-36.45%
0312	42 Neutral	HK$212.04M	-10.63	-2.41%	―	-0.83%	93.83%
0980	41 Neutral	HK$554.85M	-1.43	-404.43%	―	-12.42%	62.88%
0097	39 Underperform	HK$542.42M	-5.82	-9.44%	―	-1.43%	21.29%

Henderson Investment Limited Corporate Events

Henderson Investment Limited Enhances Board Governance with Updated Nomination Committee Duties

Henderson Investment Limited has outlined the responsibilities of its Nomination Committee, emphasizing the importance of maintaining a diverse and skilled Board of Directors. The committee’s duties include reviewing the board’s structure and composition, ensuring board diversity, assessing director independence, and making recommendations for board appointments and succession planning. This initiative is aimed at aligning the board’s capabilities with the company’s corporate strategy, potentially enhancing its governance and operational effectiveness.

The most recent analyst rating on (HK:0097) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Henderson Investment Limited stock, see the HK:0097 Stock Forecast page.