SEHK:10

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Hang Lung Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 10 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 10's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

10

-1.1%

HK Real Estate

0.4%

HK Market


1 Year Return

2.2%

10

-7.5%

HK Real Estate

11.0%

HK Market

Return vs Industry: 10 exceeded the Hong Kong Real Estate industry which returned -7.5% over the past year.

Return vs Market: 10 underperformed the Hong Kong Market which returned 11% over the past year.


Shareholder returns

10IndustryMarket
7 Day-0.7%-1.1%0.4%
30 Day10.4%5.9%7.0%
90 Day0%-2.3%6.4%
1 Year8.8%2.2%-2.5%-7.5%15.5%11.0%
3 Year-21.3%-31.1%1.7%-11.2%4.1%-6.8%
5 Year-6.2%-22.6%45.8%16.9%34.9%12.3%

Long-Term Price Volatility Vs. Market

How volatile is Hang Lung Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 10 (HK$19.28) is trading below our estimate of fair value (HK$29.42)

Significantly Below Fair Value: 10 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 10 is poor value based on its PE Ratio (17.4x) compared to the HK Real Estate industry average (8.7x).

PE vs Market: 10 is poor value based on its PE Ratio (17.4x) compared to the Hong Kong market (11.1x).


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).


Next Steps

Future Growth

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

18.9%

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.


Next Steps

Past Performance

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

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 10 has a large one-off gain of HK$3.8B impacting its June 30 2020 financial results.

Growing Profit Margin: 10's current net profit margins (16.3%) are lower than last year (63.8%).


Past Earnings Growth Analysis

Earnings Trend: 10's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 10's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 10 had negative earnings growth (-74.6%) over the past year, making it difficult to compare to the Real Estate industry average (1%).


Return on Equity

High ROE: 10's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Hang Lung Group's financial position?


Financial Position Analysis

Short Term Liabilities: 10's short term assets (HK$12.4B) do not cover its short term liabilities (HK$14.6B).

Long Term Liabilities: 10's short term assets (HK$12.4B) do not cover its long term liabilities (HK$41.2B).


Debt to Equity History and Analysis

Debt Level: 10's debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: 10's debt to equity ratio has reduced from 27.1% to 22.4% over the past 5 years.

Debt Coverage: 10's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: 10 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 10's dividend (4.25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 10's dividend (4.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.59%).


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 (73.8%), 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?

6.1yrs

Average board tenure


CEO

Weber Lo (49 yo)

2.42yrs

Tenure

HK$36,900,000

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 joining in May 16, 2018. Mr. Lo served as Chairman of Citibank (China) ...


CEO Compensation Analysis

Compensation vs Market: Weber's total compensation ($USD4.76M) is above average for companies of similar size in the Hong Kong market ($USD676.26K).

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


Board Members

NamePositionTenureCompensationOwnership
Chichung Chan
Executive Chairman of the Board29.92yrsHK$43.00m0.87%
HK$ 231.1m
Wai Pak Lo
CEO & Executive Director2.42yrsHK$36.90mno data
Wenbwo Chan
Vice Chair of the Board0.25yrHK$12.60mno data
Hau Cheong Ho
CFO & Executive Director10.25yrsHK$11.40mno data
Sik On Ip
Independent Non-Executive Director22.42yrsHK$1.20mno data
Ka Ki Chang
Non-Executive Director 5.75yrsHK$900.00kno data
Lokchung Chan
Non-Executive Director34.92yrsHK$700.00kno data
Lap-Chee Tsui
Independent Non-Executive Director6.08yrsHK$900.00kno data
Pak Wai Liu
Independent Non-Executive Director5.75yrsHK$1.10mno data
Cheung Liao
Independent Non-Executive Director6.08yrsHK$900.00kno data
Chung Yang
Non-Executive Director5.25yrsHK$700.00kno data

6.1yrs

Average Tenure

68yo

Average Age

Experienced Board: 10's board of directors are considered experienced (6.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 company bio, 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$26.688b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
10SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
HNLG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
10SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
10SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
HNLG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 1992

Biography

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and Mainland China. The company operates through four segments: Property Leasing in Mainland China, Pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 10:15
End of Day Share Price2020/12/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.