NOT FOR DISTRIBUTION
Header cover image

Hang Lung Properties

Market Cap

HK$89.9b

Last Updated

2021/05/06 10:36 UTC

Data Sources

Company Financials +

Executive Summary

Hang Lung Properties Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong and Mainland China. More Details


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 101 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 101's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-7.7%

101

-0.3%

HK Real Estate

-1.6%

HK Market


1 Year Return

22.8%

101

7.4%

HK Real Estate

27.1%

HK Market

Return vs Industry: 101 exceeded the Hong Kong Real Estate industry which returned 7.8% over the past year.

Return vs Market: 101 underperformed the Hong Kong Market which returned 28.4% over the past year.


Shareholder returns

101IndustryMarket
7 Day-7.7%-0.3%-1.6%
30 Day-2.9%-0.8%-1.8%
90 Day-4.1%8.3%-2.6%
1 Year27.4%22.8%12.6%7.4%32.0%27.1%
3 Year21.5%7.0%-5.4%-17.4%4.7%-6.4%
5 Year73.4%41.2%64.3%30.5%59.5%32.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 101 (HK$19.98) is trading above our estimate of fair value (HK$17.49)

Significantly Below Fair Value: 101 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 101 is unprofitable, so we can't compare its PE Ratio to the HK Real Estate industry average.

PE vs Market: 101 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 101's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 101 is overvalued based on its PB Ratio (0.6x) compared to the HK Real Estate industry average (0.5x).


Future Growth

How is Hang Lung Properties forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

60.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 101 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 101 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 101's is expected to become profitable in the next 3 years.

Revenue vs Market: 101's revenue (15.9% per year) is forecast to grow faster than the Hong Kong market (12.8% per year).

High Growth Revenue: 101's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 101's Return on Equity is forecast to be low in 3 years time (5%).


Past Performance

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

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 101 is currently unprofitable.

Growing Profit Margin: 101 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 101 is unprofitable, and losses have increased over the past 5 years at a rate of 16.9% per year.

Accelerating Growth: Unable to compare 101's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 101 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (5.9%).


Return on Equity

High ROE: 101 has a negative Return on Equity (-1.39%), as it is currently unprofitable.


Financial Health

How is Hang Lung Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 101's short term assets (HK$17.9B) do not cover its short term liabilities (HK$19.1B).

Long Term Liabilities: 101's short term assets (HK$17.9B) do not cover its long term liabilities (HK$44.1B).


Debt to Equity History and Analysis

Debt Level: 101's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: 101's debt to equity ratio has increased from 24.3% to 26% over the past 5 years.

Debt Coverage: 101's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: 101 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is Hang Lung Properties's current dividend yield, its reliability and sustainability?

3.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 101's dividend (3.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).

High Dividend: 101's dividend (3.8%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.03%).


Stability and Growth of Payments

Stable Dividend: 101's dividend payments have been volatile in the past 10 years.

Growing Dividend: 101's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 101 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 101's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Weber Lo (49 yo)

2.83yrs

Tenure

HK$34,700,000

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 ($USD4.47M) is above average for companies of similar size in the Hong Kong market ($USD850.49K).

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


Leadership Team

Experienced Management: 101's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 101's board of directors are considered experienced (8.6 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 Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hang Lung Properties Limited
  • Ticker: 101
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$89.870b
  • Shares outstanding: 4.50b
  • Website: https://www.hanglung.com

Number of Employees


Location

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

Listings


Biography

Hang Lung Properties Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong and Mainland China. The company operates through Propert...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 10:36
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
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.