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

• Market Cap: HK$749.25M
• Dividend Yield: 6.01%
• Average Volume (3M): 87.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -27.39%
• EPS Growth: -196.24%
• Country: HK
• Employees: 340
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Development
• EPS (TTM): -0.88
• Shares Outstanding: 720,429,300
• 10 Day Avg. Volume: 38,063
• 30 Day Avg. Volume: 87,581
• PEG Ratio: N/A
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 125.77
• 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: 55 Neutral
• 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. Business Overview & Revenue Model

Company Description

Hon 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 Money

Hon 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

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

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

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.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.09B	1.05B	1.11B	1.28B	638.48M
Gross Profit	581.35M	556.22M	593.10M	637.97M	375.18M
EBITDA	520.46M	370.09M	466.59M	494.06M	286.18M
Net Income	4.57M	153.42M	91.69M	121.52M	-35.95M
Balance Sheet
Total Assets	19.40B	20.17B	20.54B	20.39B	19.86B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.76B	1.88B	1.91B	2.17B
Total Debt	6.55B	6.15B	5.57B	5.73B	5.88B
Total Liabilities	8.07B	8.29B	8.03B	8.18B	8.36B
Stockholders Equity	11.06B	11.66B	12.26B	11.98B	11.31B
Cash Flow
Free Cash Flow	81.45M	162.37M	395.10M	233.06M	279.28M
Operating Cash Flow	86.99M	163.64M	397.27M	253.97M	286.68M
Investing Cash Flow	-545.66M	-538.23M	-43.80M	-39.59M	-563.32M
Financing Cash Flow	36.71M	349.27M	-485.55M	-568.91M	546.04M

Hon Kwok Land Investment Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0160, the sentiment is Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.05, above the 50-day MA of 1.04, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0160.

Hon Kwok Land Investment Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0496	69 Neutral	HK$716.25M	8.18	1.68%	―	5.63%	-11.50%
Sector *	64 Neutral	$6.88B	15.40	-1.98%	6.96%	4.49%	-24.05%
1278	56 Neutral	HK$1.26B	26.53	1.06%	35.71%	-1.83%	-69.18%
0160	55 Neutral	HK$749.25M	―	-6.26%	6.01%	-27.39%	-196.24%
1176	―	HK$663.80M	―	-97.81%	―	―	―
0846	46 Neutral	HK$1.10B	―	-10.79%	―	-27.84%	-298.63%
1628	39 Underperform	HK$387.22M	―		―	-55.88%	-10.72%

Hon Kwok Land Investment Co., Ltd. Corporate Events

Hon Kwok Land Investment Appoints New Managing Director

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

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

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

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.