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Hon Kwok Land Investment Co., Ltd. (HK:0160)
:0160
Hong Kong Market

Hon Kwok Land Investment Co., Ltd. (0160) AI Stock Analysis

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HK

Hon Kwok Land Investment Co., Ltd.

(0160)

Rating:55Neutral
Price Target:
The company's strong operational margins and solid balance sheet are offset by declining net income and weakened cash flow, resulting in a moderate financial performance score. Technical indicators show a neutral to slightly positive trend. However, the negative P/E ratio is a significant concern, despite the attractive dividend yield. Overall, the stock is moderately positioned with potential risks and limited upside.

Hon Kwok Land Investment Co., Ltd. (0160) vs. iShares MSCI Hong Kong ETF (EWH)

Hon Kwok Land Investment Co., Ltd. Business Overview & Revenue Model

Company DescriptionHon Kwok Land Investment Company, Limited, an investment holding company, engages in the property development, investment, and related activities in Hong Kong and Mainland China. It operates through three segments: Property Development; Property Investment; and Property, Carpark Management, and Others. The company's properties include commercial/office buildings, hotels, serviced apartment, and residential buildings. It also provides management services for residential and commercial properties. In addition, the company engages in carpark management, property holding and letting, project management, and sub-leasing activities. Further, it provides nominee, financing, and money lending services. The company is based in Central, Hong Kong. Hon Kwok Land Investment Company, Limited is a subsidiary of Chinney Investments, Limited.
How the Company Makes MoneyHon Kwok Land Investment Co., Ltd. generates revenue primarily through the development, sale, and leasing of properties. The company invests in real estate projects, which it either sells for a profit after development or retains for rental income. Key revenue streams include the sale of residential and commercial units, rental income from investment properties, and property management services. The company's earnings are significantly influenced by real estate market conditions, government regulations, and economic factors in Hong Kong and Mainland China. Strategic partnerships with local developers and contractors, as well as joint ventures for large-scale projects, also play a crucial role in enhancing revenue opportunities.

Hon Kwok Land Investment Co., Ltd. Financial Statement Overview

Summary
Hon Kwok Land Investment Co., Ltd. shows strong operational margins but faces challenges with declining net income and inconsistent revenue growth. The balance sheet remains solid with a strong equity base, though increasing leverage is a concern. Cash flow performance has weakened, necessitating careful management to ensure liquidity and financial stability.
Income Statement
55
Neutral
The company's gross profit margin is healthy, but there's a noticeable decline in net profit margin due to a sharp drop in net income. Revenue growth has been inconsistent, with a decline observed in the most recent period. EBIT and EBITDA margins remain solid, indicating good operational efficiency despite revenue fluctuations.
Balance Sheet
60
Neutral
The debt-to-equity ratio has increased slightly, suggesting higher leverage, which could pose a risk if not managed well. However, the equity ratio remains strong, indicating a stable capital structure. Return on equity has sharply decreased, driven by lower net income, which is a concern for shareholder returns.
Cash Flow
50
Neutral
The company experienced a significant drop in free cash flow, leading to a negative growth rate. Operating cash flow remains positive but has decreased, impacting cash flow stability. The operating cash flow to net income ratio is high due to low net income, indicating potential cash flow challenges.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue760.43M1.09B1.05B1.11B1.28B638.48M
Gross Profit410.40M581.35M556.22M593.10M637.97M375.18M
EBITDA323.43M520.46M370.09M466.59M494.06M286.18M
Net Income-123.64M4.57M153.42M91.69M121.52M-35.95M
Balance Sheet
Total Assets19.96B19.40B20.17B20.54B20.39B19.86B
Cash, Cash Equivalents and Short-Term Investments1.26B1.30B1.76B1.88B1.91B2.17B
Total Debt6.56B6.55B6.15B5.57B5.73B5.88B
Total Liabilities8.18B8.07B8.29B8.03B8.18B8.36B
Stockholders Equity11.46B11.06B11.66B12.26B11.98B11.31B
Cash Flow
Free Cash Flow6.07M81.45M162.37M395.10M233.06M279.28M
Operating Cash Flow12.93M86.99M163.64M397.27M253.97M286.68M
Investing Cash Flow-298.76M-545.66M-538.23M-43.80M-39.59M-563.32M
Financing Cash Flow-323.07M36.71M349.27M-485.55M-568.91M546.04M

Hon Kwok Land Investment Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.06
Price Trends
50DMA
1.04
Positive
100DMA
1.04
Positive
200DMA
1.11
Negative
Market Momentum
MACD
<0.01
Negative
RSI
62.88
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0160, the sentiment is Positive. The current price of 1.06 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 1.04, and below the 200-day MA of 1.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.88 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0160.

Hon Kwok Land Investment Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
C$1.24B0.83-8.20%5.11%9.89%-25.14%
55
Neutral
HK$763.66M-6.26%5.90%-27.39%-196.24%
HK$566.44M-97.81%
69
Neutral
HK$642.79M7.131.68%5.63%-11.50%
54
Neutral
HK$1.12B23.471.06%3.39%-1.83%-69.18%
44
Neutral
HK$664.19M-10.79%-27.84%-298.63%
40
Neutral
HK$467.28M
-55.88%-10.72%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0160
Hon Kwok Land Investment Co., Ltd.
1.07
-0.18
-14.40%
HK:1176
Zhuguang Holdings Group Co., Ltd.
0.06
-0.06
-50.00%
HK:1278
China New Town Development Co. Ltd.
0.14
0.07
100.00%
HK:1628
Yuzhou Group Holdings Co., Ltd.
0.05
>-0.01
-16.67%
HK:0496
Kasen International Holdings Ltd.
0.32
0.08
33.33%
HK:0846
Mingfa Group (International) Co. Ltd.
0.11
-0.14
-56.00%

Hon Kwok Land Investment Co., Ltd. Corporate Events

Hon Kwok Land Investment Appoints New Managing Director
Mar 31, 2025

Hon Kwok Land Investment Co., Ltd. has announced the appointment of Mr. Donald Yin-Shing Lam as the new Managing Director, effective April 1, 2025. Mr. Lam, who has extensive experience in the banking sector, will oversee the company’s financial management and operations. This strategic leadership change is expected to enhance the company’s operational efficiency and strengthen its market position.

Hon Kwok Land Investment Co., Ltd. Announces Board Composition and Committee Roles
Mar 31, 2025

Hon Kwok Land Investment Co., Ltd. has announced the composition of its Board of Directors and their roles within the company. The Board includes a mix of executive, non-executive, and independent non-executive directors, with Mr. James Sing-Wai Wong serving as Chairman and Mr. Donald Yin-Shing Lam as Managing Director. The announcement also details the membership of the company’s three Board committees: Audit, Remuneration, and Nomination, highlighting the roles of various directors within these committees. This update provides stakeholders with clarity on the governance structure and leadership roles within Hon Kwok Land Investment, which is crucial for informed decision-making and maintaining transparency.

Chinney Group Mourns Passing of Founder Dr. Wong
Feb 17, 2025

Hon Kwok Land Investment Co., Ltd. and its affiliated companies within the Chinney Group are mourning the passing of their founder, Dr. James Sai-Wing Wong, who was instrumental in their establishment and growth since 1975. Despite his passing, the companies have assured stakeholders that there will be no impact on their operations, as the business strategies laid out by their respective Boards will continue to be followed. The Boards extend their condolences to Dr. Wong’s family and recognize his significant contributions and leadership.

Hon Kwok Expands in Japan with Osaka Hotel Acquisition
Feb 7, 2025

Hon Kwok Land Investment Co., Ltd. has announced a significant acquisition of a hotel property in Osaka, Japan, through its joint venture entity, The Bauhinia Hotels Group Japan 5. This acquisition, valued at approximately JPY1,220 million, reflects Hon Kwok’s strategic move to expand its footprint in the Japanese hospitality sector. The transaction structure involves The Bauhinia Hotels Group Japan 5 assuming rights from Green Estate under an existing sale contract, with the property completion date extended to February 28, 2025. The acquisition is deemed a discloseable transaction under Hong Kong’s Listing Rules, highlighting its relevance to stakeholders while not requiring shareholder approval.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025