Henderson Land Development Full Year 2024 Earnings: Misses Expectations

Henderson Land Development (HKG:12) Full Year 2024 Results

Key Financial Results

• Revenue: HK$25.3b (down 8.4% from FY 2023).
• Net income: HK$6.30b (down 32% from FY 2023).
• Profit margin: 25% (down from 34% in FY 2023). The decrease in margin was primarily driven by lower revenue.
• EPS: HK$1.30 (down from HK$1.91 in FY 2023).

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All figures shown in the chart above are for the trailing 12 month (TTM) period

Henderson Land Development Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 4.3%.

The primary driver behind last 12 months revenue was the Property Development - Hong Kong segment contributing a total revenue of HK$11.7b (46% of total revenue). Notably, cost of sales worth HK$16.4b amounted to 65% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to HK$2.35b (90% of total expenses). Explore how 12's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Real Estate industry in Hong Kong.

Performance of the Hong Kong Real Estate industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for Henderson Land Development that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.