Henderson Land (HLDCY) AI Stock Analysis

• Market Cap: $17.26B
• Dividend Yield: 6.51%
• Average Volume (3M): 28.33K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.31
• Revenue Growth: -19.60%
• EPS Growth: -6.55%
• Country: US
• Employees: 9,970
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.08
• Shares Outstanding: 4,841,387,000
• 10 Day Avg. Volume: 21,925
• 30 Day Avg. Volume: 28,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 4.12
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: $4.00
• Price Target Upside: 10.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $4.00 ▲(10.50% Upside)

Henderson Land shows strong technical momentum and attractive dividend yield, overshadowing concerns about declining revenue and modest ROE. The stock is currently overbought, suggesting potential for short-term correction.

Positive Factors

Strong Cash Flow

Strong cash flow generation indicates effective cash management and provides the company with flexibility to invest in growth opportunities and manage debt.

Low Leverage

Low leverage enhances financial stability, reducing risk and providing the company with the ability to weather economic downturns and invest in strategic initiatives.

Operational Efficiency

High operational efficiency, as indicated by a strong EBITDA margin, supports sustained profitability and competitive positioning in the market.

Negative Factors

Revenue Decline

Declining revenue poses a challenge to growth and profitability, potentially impacting the company's ability to invest in new projects and maintain market share.

Modest ROE

A low ROE indicates limited efficiency in generating profits from shareholder equity, which may affect investor confidence and the company's ability to raise capital.

Profit Margin Reduction

Reduced profit margins suggest challenges in maintaining cost efficiency or pricing power, which could pressure future earnings and strategic investments.

Henderson Land Business Overview & Revenue Model

Company Description

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; trades in building materials; and disposes leasehold land, as well as engages in the food and beverage and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. The company was incorporated in 1976 and is headquartered in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

How the Company Makes Money

Henderson Land generates revenue primarily through the sale and leasing of residential and commercial properties. Its revenue model includes the development and sale of residential units, where it profits from the appreciation of real estate values. Additionally, the company earns rental income from its commercial properties, which include shopping malls and office buildings. Significant partnerships with local and international firms enhance its capabilities in large-scale projects. The company also benefits from government contracts and joint ventures, which contribute to its earnings through diversified real estate investments and development projects.

Henderson Land Financial Statement Overview

Summary

Henderson Land exhibits strong cash flow and low leverage, but faces challenges with revenue decline and modest ROE. Profitability margins are healthy but slightly reduced. Focus on revenue growth and ROE improvement is needed.

Income Statement

The income statement shows some negative trends with a decrease in total revenue from 2023 to 2024. Gross profit margin for 2024 is 36.01%, and net profit margin is 24.92%, indicating stable profitability, but both are lower compared to 2023. EBITDA margin is 43.24% for 2024, reflecting strong operational efficiency. Revenue has decreased by 8.41% from 2023, which is a concern. Overall, the company maintains good margins but faces challenges in revenue growth.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.26 for 2024, suggesting low leverage. Return on equity (ROE) is 1.95% for 2024, showing modest returns on shareholder investments. The equity ratio stands at 60.64%, reflecting financial stability. Overall, the company has a strong balance sheet with prudent debt management, but the ROE has declined compared to previous years.

Cash Flow

Cash flow analysis shows a positive trend with operating cash flow and free cash flow both at 15,297 million for 2024, demonstrating strong cash generation. The free cash flow has increased by 5.79% from 2023, indicating good cash management. The operating cash flow to net income ratio is 2.43, and the free cash flow to net income ratio is 2.43, both indicating efficient cash conversion. Overall, the company exhibits strong cash flow generation and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.26B	27.57B	25.44B	23.89B	25.42B
Gross Profit	9.09B	10.03B	10.26B	12.44B	15.71B
EBITDA	10.92B	12.83B	7.11B	9.80B	13.09B
Net Income	6.30B	9.26B	9.24B	13.20B	10.19B
Balance Sheet
Total Assets	531.24B	542.55B	529.79B	550.30B	461.09B
Cash, Cash Equivalents and Short-Term Investments	18.77B	22.11B	11.74B	11.34B	6.13B
Total Debt	83.25B	161.69B	150.09B	159.48B	96.29B
Total Liabilities	190.66B	198.45B	184.64B	198.13B	128.90B
Stockholders Equity	322.15B	326.54B	327.95B	335.02B	327.61B
Cash Flow
Free Cash Flow	15.30B	14.46B	7.95B	-54.16B	4.51B
Operating Cash Flow	15.30B	14.46B	11.13B	685.00M	7.07B
Investing Cash Flow	-1.87B	16.00M	12.15B	-50.04B	-974.00M
Financing Cash Flow	-21.20B	-5.42B	-21.30B	52.05B	-10.75B

Henderson Land Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLDCY, the sentiment is Positive. The current price of 3.62 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.44, and above the 200-day MA of 2.97, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.86 is Neutral, neither overbought nor oversold. The STOCH value of 99.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLDCY.

Henderson Land Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLDCY	77 Outperform	$17.26B	22.27	1.89%	6.51%	-19.60%	-6.55%
MAA	75 Outperform	$17.29B	29.14	9.58%	4.23%	1.19%	10.52%
AMH	74 Outperform	$12.84B	31.15	5.99%	3.28%	7.19%	15.70%
ESS	71 Outperform	$17.92B	21.19	14.40%	3.76%	7.56%	54.15%
EQR	69 Neutral	$25.55B	25.20	9.20%	4.12%	4.49%	5.87%
CPT	67 Neutral	$15.68B	75.96	3.30%	3.80%	0.76%	-60.70%
Sector *	63 Neutral	$7.15B	13.38	-0.30%	6.85%	4.03%	-25.34%