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): 0.18
• 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$0.16 ▼(-8.89% 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

Group affiliation

Being part of the Henderson Land group is a durable strategic advantage: it supports access to group property projects, capital allocation decisions, and affiliate cash flows. This affiliation can provide pipeline visibility and strategic support across property cycles for several months to years.

Diversified income streams

A business model driven by dividend receipts, investment gains and property-related share results provides multiple durable cash-generating channels. Diversification between financial investments and property receipts can smooth earnings volatility and preserve long-term cash generation capacity.

Owner financing buffer

A reasonable equity ratio and moderate balance-sheet stability supply a structural buffer against property-market downturns. This improves solvency over months, allowing the company to absorb asset valuation swings and reduces near-term refinancing pressure versus highly levered peers.

Negative Factors

Operating cash flow deficit

The absence of operating and free cash flow is a persistent structural weakness. Without consistent cash generated from operations, the company faces limited internal funding for capex, debt service or dividends and heightened reliance on asset sales or external financing over the medium term.

Rising leverage

Increasing debt levels raise long-term financial vulnerability: higher interest costs and tighter covenants reduce strategic flexibility. In a cyclical property market or rising rate environment, elevated leverage materially increases refinancing and solvency risk over the next several quarters.

Declining revenue and margins

Persistent revenue decline and margin compression undermine sustainable earnings power. Reduced efficiency narrows cash available for reinvestment or distributions and signals structural challenges in operations or portfolio returns that could persist without strategic remediation.

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: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 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:0097, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	57 Neutral	HK$649.17M	25.33	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$102.70M	-0.27	―	―	-3.03%	-36.45%
0312	42 Neutral	HK$192.09M	-10.51	-2.41%	―	-0.83%	93.83%
0980	41 Neutral	HK$532.66M	-1.42	-404.43%	―	-12.42%	62.88%
0097	39 Underperform	HK$542.42M	-5.35	-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.