Hang Lung Properties (0101) AI Stock Analysis

• Market Cap: $45.91B
• Dividend Yield: 5.81%
• Average Volume (3M): 9.47M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.02
• Revenue Growth: -9.76%
• EPS Growth: -28.29%
• Country: HK
• Employees: 3,930
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.33
• Shares Outstanding: 5,056,646,500
• 10 Day Avg. Volume: 8,853,264
• 30 Day Avg. Volume: 9,466,734
• PEG Ratio: -0.28
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 2.57
• P/FCF Ratio: 6.03
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 9.31
• Enterprise Value/Gross Profit: 11.76
• Enterprise Value/Ebitda: 16.16
• 1Y Price Target: $10.04
• Price Target Upside: 9.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$10.00 ▲(9.17% Upside)

Hang Lung Properties demonstrates a strong technical position with positive price trends and moderate bullish momentum. Financial performance is mixed, with stable revenue growth but declining profit margins. The valuation is slightly high, but the dividend yield offers some appeal.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low leverage and strong equity provides financial flexibility and resilience against economic fluctuations.

Cash Generation Ability

Strong operating cash flow indicates efficient cash generation, supporting ongoing operations and potential investments in growth opportunities.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and attract new tenants, enhancing long-term business stability.

Negative Factors

Declining Profit Margins

Declining profit margins suggest challenges in cost management and pricing power, which could impact future profitability and competitiveness.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity constraints, limiting the company's ability to invest in new projects or return capital to shareholders.

Reduced Return on Equity

A decrease in return on equity suggests less efficient use of shareholder funds, potentially affecting investor confidence and capital raising capabilities.

Hang Lung Properties Business Overview & Revenue Model

Company Description

Hang Lung Properties Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong and Mainland China. The company operates through Property Leasing and Property Sales segments. The company is involved in the development, sale, and leasing of properties. Its investment properties portfolio includes shopping malls, office, residential, serviced apartment, hotel, and car parking properties, as well as industrial premises. The company also engages in the apartment operating and management; project management; and property agency activities. In addition, it provides management and financial services. The company was incorporated in 1949 and is headquartered in Central, Hong Kong. Hang Lung Properties Limited is a subsidiary of Hang Lung Group Limited.

How the Company Makes Money

Hang Lung Properties generates revenue through multiple streams, primarily from leasing and management of its commercial properties, including shopping malls and office spaces. The company earns rental income from long-term leases with tenants, which constitute a significant portion of its revenue. Additionally, Hang Lung engages in property sales, realizing profits from the sale of residential units in its developments. The firm also benefits from strategic partnerships with retailers and businesses, enhancing its portfolio's attractiveness and occupancy rates. Furthermore, the company's focus on developing high-quality properties in prime locations contributes to its earnings potential, as these assets tend to command higher rents and attract premium tenants.

Hang Lung Properties Financial Statement Overview

Summary

Hang Lung Properties shows moderate revenue growth and a stable balance sheet with low leverage. However, declining profit margins and negative free cash flow growth indicate potential challenges in sustaining profitability.

Income Statement

Hang Lung Properties shows moderate revenue growth with a 8.6% increase from the previous year. However, there's a significant drop in gross profit margin from 71.7% to 57.4%, and net profit margin also declined from 38.3% to 19.1%. The EBITDA margin remains strong at 44.4%, but the absence of EBIT margin due to zero EBIT is concerning.

Balance Sheet

The company maintains a stable financial position with a low debt-to-equity ratio of 0.44 and a strong equity ratio of 59.4%. However, the return on equity has decreased to 16.4%, indicating reduced profitability on shareholder investments. The balance sheet reflects strong equity and manageable debt levels.

Cash Flow

Operating cash flow has increased significantly to HKD 4.96 billion. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, free cash flow growth rate is negative due to higher capital expenditures, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.10B	11.24B	10.35B	10.35B	10.33B	9.00B
Gross Profit	8.00B	6.46B	7.42B	7.26B	7.38B	6.51B
EBITDA	5.82B	5.00B	6.83B	6.69B	6.85B	6.02B
Net Income	2.00B	2.15B	3.97B	3.84B	3.87B	-2.57B
Balance Sheet
Total Assets	221.37B	221.65B	217.30B	212.69B	224.24B	211.32B
Cash, Cash Equivalents and Short-Term Investments	6.91B	10.30B	5.35B	5.23B	8.52B	6.32B
Total Debt	48.36B	57.64B	50.98B	45.82B	46.03B	38.24B
Total Liabilities	78.29B	80.60B	75.18B	69.54B	71.85B	63.13B
Stockholders Equity	133.13B	131.59B	132.41B	133.38B	141.72B	138.29B
Cash Flow
Free Cash Flow	5.64B	4.79B	632.00M	1.44B	-123.00M	306.00M
Operating Cash Flow	4.31B	4.96B	3.71B	4.14B	2.73B	3.41B
Investing Cash Flow	-3.12B	-3.17B	-2.94B	-2.56B	-1.42B	-2.20B
Financing Cash Flow	-85.00M	3.21B	-607.00M	-4.57B	1.98B	2.31B

Hang Lung Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0101, the sentiment is Neutral. The current price of 9.16 is above the 20-day moving average (MA) of 9.04, above the 50-day MA of 8.87, and above the 200-day MA of 7.42, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0101.

Hang Lung Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0101	71 Outperform	$45.91B	21.64	1.52%	5.81%	-9.76%	-28.29%
2669	69 Neutral	HK$15.60B	9.37	30.27%	3.73%	―	―
6098	66 Neutral	$20.63B	13.91	3.72%	4.87%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0014	61 Neutral	$16.57B	-52.25	-0.48%	5.84%	2.60%	50.07%
1997	60 Neutral	$68.98B	-148.89	-0.25%	5.21%	-3.87%	-124.27%
2602	58 Neutral	HK$26.21B	20.66	7.08%	1.70%	5.75%	-31.63%

Hang Lung Properties Corporate Events

Hang Lung Properties Announces Board Composition and Roles

Hang Lung Properties Limited has announced the composition of its board of directors and their respective roles. The board includes executive directors such as Adriel Chan, who serves as Chair, and Weber Wai Pak Lo, the Chief Executive Officer. The announcement also details the membership of three board committees: the Executive Committee, the Audit Committee, and the Nomination and Remuneration Committee. This update provides clarity on the leadership structure of the company, which is crucial for stakeholders to understand the governance and strategic direction of Hang Lung Properties.

Hang Lung Properties Appoints Andrew Weir as Non-Executive Director

Hang Lung Properties Limited has announced the appointment of Mr. Andrew Walter Bougourd Ross Weir as a Non-Executive Director, effective October 1, 2025. Mr. Weir brings extensive experience in auditing, finance, and governance, having held significant roles in organizations such as Standard Chartered Bank and KPMG. His appointment is expected to strengthen the company’s governance and strategic direction, leveraging his expertise in international finance and real estate.