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10

Hang Lung GroupSEHK:10 Stock Report

Market Cap

HK$24.9b

7D

-1.4%

1Y

-0.5%

Updated

19 Oct, 2021

Data

Company Financials
10 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends3/6

10 Overview

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and Mainland China.

Price History & Performance

Summary of all time highs, changes and price drops for Hang Lung Group
Historical stock prices
Current Share PriceHK$18.30
52 Week HighHK$17.08
52 Week LowHK$21.60
Beta0.91
1 Month Change1.11%
3 Month Change-3.68%
1 Year Change-0.54%
3 Year Change-7.11%
5 Year Change-40.29%
Change since IPO124.54%

Recent News & Updates

Shareholder Returns

10HK Real EstateHK Market
7D-1.4%0.6%0.7%
1Y-0.5%-12.1%5.7%

Return vs Industry: 10 exceeded the Hong Kong Real Estate industry which returned -12.1% over the past year.

Return vs Market: 10 underperformed the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 10's price volatile compared to industry and market?
10 volatility
10 Beta0.91
Industry Beta0.85
Market Beta1

Stable Share Price: 10 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 10's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19604,315Weber Lohttps://www.hanglung.com/en-US/group/home

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and Mainland China. The company operates through Property Leasing and Property Sales segments. It develops properties for sale and lease, such as large-scale commercial, office, and residential developments.

Hang Lung Group Fundamentals Summary

How do Hang Lung Group's earnings and revenue compare to its market cap?
10 fundamental statistics
Market CapHK$24.94b
Earnings (TTM)HK$1.56b
Revenue (TTM)HK$10.19b

16.0x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
10 income statement (TTM)
RevenueHK$10.19b
Cost of RevenueHK$2.86b
Gross ProfitHK$7.33b
ExpensesHK$5.77b
EarningsHK$1.56b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.15
Gross Margin71.98%
Net Profit Margin15.33%
Debt/Equity Ratio25.5%

How did 10 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

73%

Payout Ratio

Valuation

Is Hang Lung Group undervalued compared to its fair value and its price relative to the market?

15.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 10 (HK$18.3) is trading above our estimate of fair value (HK$11.74)

Significantly Below Fair Value: 10 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 10 is poor value based on its PE Ratio (16x) compared to the Hong Kong Real Estate industry average (7.5x).

PE vs Market: 10 is poor value based on its PE Ratio (16x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 10's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 10 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.4x).


Future Growth

How is Hang Lung Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.9%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hang Lung Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Hang Lung Group performed over the past 5 years?

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 10 has a large one-off loss of HK$1.4B impacting its June 30 2021 financial results.

Growing Profit Margin: 10's current net profit margins (15.3%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: 10's earnings have declined by 16.7% per year over the past 5 years.

Accelerating Growth: 10's earnings growth over the past year (3.3%) exceeds its 5-year average (-16.7% per year).

Earnings vs Industry: 10 earnings growth over the past year (3.3%) underperformed the Real Estate industry 23.4%.


Return on Equity

High ROE: 10's Return on Equity (2%) is considered low.


Financial Health

How is Hang Lung Group's financial position?


Financial Position Analysis

Short Term Liabilities: 10's short term assets (HK$19.2B) exceed its short term liabilities (HK$18.8B).

Long Term Liabilities: 10's short term assets (HK$19.2B) do not cover its long term liabilities (HK$48.4B).


Debt to Equity History and Analysis

Debt Level: 10's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: 10's debt to equity ratio has reduced from 25.8% to 25.5% over the past 5 years.

Debt Coverage: 10's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: 10's interest payments on its debt are well covered by EBIT (31.9x coverage).


Balance Sheet


Dividend

What is Hang Lung Group current dividend yield, its reliability and sustainability?

4.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 10's dividend (4.59%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 10's dividend (4.59%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 10's dividend payments have been volatile in the past 10 years.

Growing Dividend: 10's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.2%), 10's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average board tenure


CEO

Weber Lo (50 yo)

3.25yrs

Tenure

HK$35,500,000

Compensation

Mr. Wai Pak Lo, also known as Weber, has been an Executive Director of Hang Lung Group Limited and Hang Lung Properties Limited since May 16, 2018. Mr. Lo served as Chairman of Citibank (China) Co., Ltd. H...


CEO Compensation Analysis

Compensation vs Market: Weber's total compensation ($USD4.56M) is above average for companies of similar size in the Hong Kong market ($USD697.61K).

Compensation vs Earnings: Weber's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 10's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 10 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hang Lung Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hang Lung Group Limited
  • Ticker: 10
  • Exchange: SEHK
  • Founded: 1960
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$24.945b
  • Shares outstanding: 1.36b
  • Website: https://www.hanglung.com/en-US/group/home

Number of Employees


Location

  • Hang Lung Group Limited
  • Standard Chartered Bank Building
  • 28th Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 10:03
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.