Hopson Development Holdings Limited (0754) AI Stock Analysis

• Market Cap: HK$14.98B
• Dividend Yield: N/A
• Average Volume (3M): 3.18M
• Price to Earnings (P/E): 125.4
• Beta (1Y): 1.57
• Revenue Growth: 9.62%
• EPS Growth: -95.91%
• Country: HK
• Employees: 8,506
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Development
• EPS (TTM): -0.25
• Shares Outstanding: 3,792,540,500
• 10 Day Avg. Volume: 4,027,185
• 30 Day Avg. Volume: 3,184,317
• PEG Ratio: 2.45
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.00
• 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: HK$3.49
• Price Target Upside: -11.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: HK$4.00 ▲(1.27%Upside)

The primary concern is the company's financial performance, marked by high leverage and cash flow difficulties. Technical analysis suggests potential short-term gains, but with significant risk due to overbought indicators. Valuation metrics indicate the stock is overvalued, which, combined with declining profitability, presents a cautionary outlook.

Hopson Development Holdings Limited Business Overview & Revenue Model

Company Description

Hopson Development Holdings Limited, an investment holding company, primarily develops residential and commercial properties in the People's Republic of China and Hong Kong. The company operates through five segments: Property Development, Commercial Properties Investment, Property Management, Infrastructure, and Investments. It invests in and rents properties; manages restaurants, hotels, and properties; and operates hotels. The company also provides construction, water supply, clubhouse and residential, consultancy, and architectural design services. In addition, it engages in design and renovation services; sale of properties; and home decoration services, as well as investment in private and listed equity. The company was founded in 1992 and is headquartered in Central, Hong Kong. Hopson Development Holdings Limited is a subsidiary of Sounda Properties Limited.

How the Company Makes Money

Hopson Development Holdings Limited makes money through a diversified revenue model centered around property development, property investment, and property management services. The primary revenue stream comes from the sale of developed residential properties, which includes high-rise apartments, villas, and townhouses. Additionally, the company generates income from its commercial properties, such as office buildings and shopping malls, through leasing and rental activities. Hopson also invests in hospitality properties, earning revenue from hotel operations and related services. Property management services provide a stable and recurring income source, as the company manages and maintains various developments, ensuring a steady cash flow. Strategic partnerships with local governments and other real estate firms, as well as a focus on urbanization trends in China, significantly contribute to Hopson's earnings.

Hopson Development Holdings Limited Financial Statement Overview

Summary

Moderate revenue growth is overshadowed by declining net income and profitability. The balance sheet is stable but heavily leveraged, and cash flow issues indicate potential liquidity problems.

Income Statement

The company has shown moderate revenue growth with a recent increase of 10.34% in 2024. However, net income has dropped significantly from previous years, affecting the net profit margin, which is now at a low 0.32%. Gross profit margin stands at 23.12%, indicating challenges in cost management. EBIT and EBITDA margins are also under pressure, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 0.83, indicating a moderate level of leverage. However, the equity ratio of 36.31% suggests that the company is heavily reliant on liabilities to finance its assets. Return on equity has declined due to reduced net income, posing potential risks to shareholder returns.

Cash Flow

Cash flows are under significant stress with no reported operating or free cash flow in 2024. Previously, there was a positive free cash flow in 2023, but the lack of data for 2024 indicates potential liquidity issues. The absence of cash flow metrics this year raises concerns about the company's ability to generate cash from its operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.83B	34.29B	29.85B	34.15B	34.38B
Gross Profit	8.75B	9.50B	10.88B	16.56B	21.84B
EBITDA	6.09B	7.71B	6.83B	12.59B	18.23B
Net Income	119.58M	2.92B	8.76B	9.76B	13.63B
Balance Sheet
Total Assets	256.88B	288.69B	298.71B	346.23B	300.87B
Cash, Cash Equivalents and Short-Term Investments	11.91B	16.60B	19.85B	42.45B	51.67B
Total Debt	76.25B	88.47B	98.20B	119.35B	117.42B
Total Liabilities	157.97B	187.71B	200.34B	233.20B	203.00B
Stockholders Equity	93.28B	95.36B	93.15B	96.33B	88.01B
Cash Flow
Free Cash Flow	8.50B	15.67B	7.54B	12.83B	-36.88B
Operating Cash Flow	8.71B	15.83B	7.70B	13.20B	-36.43B
Investing Cash Flow	4.62B	-1.50B	-13.05B	-1.62B	6.32B
Financing Cash Flow	-10.68B	-16.90B	-13.21B	-5.87B	44.29B

Hopson Development Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0754, the sentiment is Positive. The current price of 3.95 is above the 20-day moving average (MA) of 3.49, above the 50-day MA of 3.24, and above the 200-day MA of 3.25, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 73.42 is Negative, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0754.

Hopson Development Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.05B	16.90	2.45%	5.19%	-0.30%	1.21%
0754	52 Neutral	HK$14.98B	125.40	0.12%	―	9.62%	-95.91%
CTRYF	―	$1.80B	―	-341.41%	―	―	―
SNCNQ	―	$2.53B	―	-49.73%	―	―	―
1030	63 Neutral	HK$18.37B	34.44	1.07%	―	-26.43%	―
0817	54 Neutral	HK$19.58B	25.75	1.81%	3.17%	-19.50%	―
9993	45 Neutral	HK$11.57B	―	-46.88%	―	-29.20%	-1542.77%

Hopson Development Holdings Limited Corporate Events

Hopson Development Reports Strong Sales in First Half of 2025

Hopson Development Holdings Limited reported unaudited operating statistics for the first half of 2025, with gross contracted sales reaching approximately RMB7,928 million. The company recorded significant property and decoration sales, indicating robust performance in its core real estate market. However, the figures are subject to change due to potential uncertainties in the sales process, and detailed financials will be available in the interim report.

Hopson Development Holdings Updates Nomination Committee Terms

Hopson Development Holdings Limited has revised the terms of reference for its Nomination Committee, which is responsible for overseeing the nomination and appointment of directors to the company’s board. The committee, composed primarily of independent non-executive directors, is tasked with ensuring board diversity and succession planning, and it holds the authority to seek independent professional advice and resources as needed. This update reflects the company’s commitment to maintaining robust corporate governance practices and adapting to evolving market and regulatory requirements.

Hopson Development Reports RMB6,033 Million in Contracted Sales for Early 2025

Hopson Development Holdings Limited reported unaudited gross contracted sales of approximately RMB6,033 million for the five months ending May 31, 2025, with property sales contributing RMB5,642 million and decoration sales RMB391 million. The announcement highlights the company’s operational performance, indicating a significant contribution from property sales, and advises stakeholders to exercise caution due to potential variations in sales figures.

Hopson Development Holdings Successfully Passes All AGM Resolutions

Hopson Development Holdings Limited announced that all resolutions proposed at their Annual General Meeting held on June 13, 2025, were successfully passed. These resolutions included the re-election of directors, the re-appointment of auditors, and the granting of mandates related to share allotment and repurchase. The successful passing of these resolutions indicates strong shareholder support and is likely to positively impact the company’s governance and operational strategies.

Hopson Development Reports Strong Sales for Early 2025

Hopson Development Holdings Limited reported gross contracted sales of approximately RMB4,744 million for the first four months of 2025, with property sales contributing RMB4,406 million and decoration sales RMB338 million. The announcement highlights the company’s robust sales performance, indicating a strong market presence despite potential uncertainties in sales figures, and advises stakeholders to exercise caution in securities dealings.