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Henderson Land Development

SEHK:12
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
12
SEHK
HK$205B
Market Cap
  1. Home
  2. HK
  3. Real Estate
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 last earnings update was 67 days ago. More info.


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12 Share Price and Events
7 Day Returns
7.8%
SEHK:12
2.4%
HK Real Estate
3.9%
HK Market
1 Year Returns
13%
SEHK:12
-4.7%
HK Real Estate
-9.3%
HK Market
12 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Henderson Land Development (12) 7.8% -2% -0.2% 13% 40.4% 54.3%
HK Real Estate 2.4% 3.4% -3.4% -4.7% 55.9% 53.4%
HK Market 3.9% 3.5% -3.6% -9.3% 24.9% 7.4%
1 Year Return vs Industry and Market
  • 12 outperformed the Real Estate industry which returned -4.7% over the past year.
  • 12 outperformed the Market in Hong Kong which returned -9.3% over the past year.
Price Volatility
12
Industry
5yr Volatility vs Market

12 Value

 Is Henderson Land Development undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Henderson Land Development to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Henderson Land Development.

SEHK:12 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:12
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.035 (1 + (1- 25%) (43.13%))
1.247
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.247 * 6.65%)
10.3%

Discounted Cash Flow Calculation for SEHK:12 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Henderson Land Development is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:12 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 10.3%)
2019 6,289.00 Analyst x1 5,701.84
2020 9,254.20 Analyst x2 7,606.86
2021 15,426.00 Analyst x1 11,496.17
2022 20,205.46 Est @ 30.98% 13,652.18
2023 24,709.07 Est @ 22.29% 15,136.42
2024 28,712.75 Est @ 16.2% 15,946.85
2025 32,141.96 Est @ 11.94% 16,184.74
2026 35,022.25 Est @ 8.96% 15,988.61
2027 37,429.57 Est @ 6.87% 15,492.26
2028 39,455.44 Est @ 5.41% 14,806.09
Present value of next 10 years cash flows HK$132,012.02
SEHK:12 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$39,455.44 × (1 + 2%) ÷ (10.3% – 2%)
HK$485,195.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$485,195.10 ÷ (1 + 10.3%)10
HK$182,074.78
SEHK:12 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$132,012.02 + HK$182,074.78
HK$314,086.80
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$314,086.80 / 4,841.39
HK$64.88
SEHK:12 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$64.88
Current discount Discount to share price of HK$43.45
= -1 x (HK$43.45 - HK$64.88) / HK$64.88
33%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Henderson Land Development is available for.
Intrinsic value
33%
Share price is HK$43.45 vs Future cash flow value of HK$64.88
Current Discount Checks
For Henderson Land Development to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Henderson Land Development's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Henderson Land Development's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Henderson Land Development's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Henderson Land Development's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:12 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$6.44
SEHK:12 Share Price ** SEHK (2019-06-24) in HKD HK$43.45
Hong Kong Real Estate Industry PE Ratio Median Figure of 188 Publicly-Listed Real Estate Companies 6.29x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Henderson Land Development.

SEHK:12 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:12 Share Price ÷ EPS (both in HKD)

= 43.45 ÷ 6.44

6.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Henderson Land Development is overvalued based on earnings compared to the HK Real Estate industry average.
  • Henderson Land Development is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Henderson Land Development's expected growth come at a high price?
Raw Data
SEHK:12 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
-19.7%per year
Hong Kong Real Estate Industry PEG Ratio Median Figure of 60 Publicly-Listed Real Estate Companies 0.27x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.78x

*Line of best fit is calculated by linear regression .

SEHK:12 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.75x ÷ -19.7%

-0.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Henderson Land Development earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Henderson Land Development's assets?
Raw Data
SEHK:12 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$64.69
SEHK:12 Share Price * SEHK (2019-06-24) in HKD HK$43.45
Hong Kong Real Estate Industry PB Ratio Median Figure of 229 Publicly-Listed Real Estate Companies 0.57x
Hong Kong Market PB Ratio Median Figure of 2,172 Publicly-Listed Companies 0.94x
SEHK:12 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:12 Share Price ÷ Book Value per Share (both in HKD)

= 43.45 ÷ 64.69

0.67x

* Primary Listing of Henderson Land Development.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Henderson Land Development is overvalued based on assets compared to the HK Real Estate industry average.
X
Value checks
We assess Henderson Land Development's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Henderson Land Development has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

12 Future Performance

 How is Henderson Land Development expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Henderson Land Development expected to grow at an attractive rate?
  • Henderson Land Development's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Henderson Land Development's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Henderson Land Development's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:12 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:12 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts -19.7%
SEHK:12 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 13.3%
Hong Kong Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 5.6%
Hong Kong Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 16.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:12 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:12 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 34,492 4,383 18,821 8
2020-12-31 30,019 10,039 16,255 12
2019-12-31 29,193 12,551 15,786 11
SEHK:12 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 21,982 3,824 31,157
2018-09-30 25,102 -9,651 31,962
2018-06-30 24,714 -24,123 32,390
2018-03-31 24,584 -12,959 31,412
2017-12-31 27,960 -797 30,809
2017-09-30 26,653 4,210 27,863
2017-06-30 28,724 8,896 26,378
2017-03-31 27,146 7,613 24,147
2016-12-31 25,568 6,330 21,916
2016-09-30 23,958 21,004
2016-06-30 22,347 -3,446 20,091
2016-03-31 22,994 -2,112 20,709

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Henderson Land Development's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Henderson Land Development's revenue is expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:12 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Henderson Land Development Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:12 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.86 5.95 2.88 9.00
2020-12-31 3.37 4.94 2.82 11.00
2019-12-31 3.26 4.07 2.93 10.00
SEHK:12 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 6.44
2018-09-30 6.60
2018-06-30 6.69
2018-03-31 6.49
2017-12-31 6.36
2017-09-30 5.76
2017-06-30 5.45
2017-03-31 4.99
2016-12-31 4.53
2016-09-30 4.34
2016-06-30 4.15
2016-03-31 4.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Henderson Land Development is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Henderson Land Development's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Henderson Land Development has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

12 Past Performance

  How has Henderson Land Development performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Henderson Land Development's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Henderson Land Development's year on year earnings growth rate has been positive over the past 5 years.
  • Henderson Land Development's 1-year earnings growth is less than its 5-year average (1.1% vs 15.9%)
  • Henderson Land Development's earnings growth has not exceeded the HK Real Estate industry average in the past year (1.1% vs 6.3%).
Earnings and Revenue History
Henderson Land Development's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Henderson Land Development Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:12 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 21,982.00 31,157.00 2,547.00
2018-09-30 25,101.50 31,961.50 2,656.00
2018-06-30 24,714.00 32,390.00 2,520.00
2018-03-31 24,583.50 31,411.50 2,783.00
2017-12-31 27,960.00 30,809.00 3,291.00
2017-09-30 26,652.50 27,863.00 3,362.50
2017-06-30 28,724.00 26,378.00 3,532.00
2017-03-31 27,146.00 24,147.00 3,323.50
2016-12-31 25,568.00 21,916.00 3,115.00
2016-09-30 23,957.50 21,003.50 3,157.50
2016-06-30 22,347.00 20,091.00 3,200.00
2016-03-31 22,994.00 20,708.50 3,289.00
2015-12-31 23,641.00 21,326.00 3,378.00
2015-09-30 24,731.00 19,232.00 3,345.00
2015-06-30 25,821.00 17,138.00 3,312.00
2015-03-31 24,596.00 16,945.00 3,267.00
2014-12-31 23,371.00 16,752.00 3,222.00
2014-09-30 23,322.00 17,201.50 3,267.00
2014-06-30 23,273.00 17,651.00 3,312.00
2014-03-31 23,281.00 16,799.50 3,249.00
2013-12-31 23,289.00 15,948.00 3,186.00
2013-09-30 20,145.00 18,086.50 3,001.00
2013-06-30 17,001.00 20,225.00 2,816.00
2013-03-31 16,296.50 20,213.00 2,775.00
2012-12-31 15,592.00 20,201.00 2,734.00
2012-09-30 13,666.00 18,150.50 2,619.50
2012-06-30 11,740.00 16,093.00 2,505.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Henderson Land Development has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Henderson Land Development used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.
  • Henderson Land Development has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Henderson Land Development's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Henderson Land Development has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

12 Health

 How is Henderson Land Development's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Henderson Land Development's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Henderson Land Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Henderson Land Development's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Henderson Land Development's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Henderson Land Development Company Filings, last reported 5 months ago.

SEHK:12 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 317,992.00 88,220.00 16,697.00
2018-09-30 317,992.00 88,220.00 16,697.00
2018-06-30 307,295.00 89,134.00 17,656.00
2018-03-31 307,295.00 89,134.00 17,656.00
2017-12-31 297,943.00 81,376.00 24,673.00
2017-09-30 298,612.00 81,376.00 24,673.00
2017-06-30 281,114.00 79,667.00 25,366.00
2017-03-31 281,114.00 79,667.00 25,366.00
2016-12-31 269,301.00 57,624.00 22,966.00
2016-09-30 269,301.00 57,624.00 22,966.00
2016-06-30 260,108.00 56,509.00 17,663.00
2016-03-31 260,108.00 56,509.00 17,663.00
2015-12-31 256,269.00 53,872.00 11,779.00
2015-09-30 256,269.00 53,872.00 11,779.00
2015-06-30 250,986.00 44,697.00 10,022.00
2015-03-31 250,986.00 44,697.00 10,022.00
2014-12-31 243,217.00 49,196.00 10,303.00
2014-09-30 243,217.00 49,196.00 10,303.00
2014-06-30 235,494.00 46,240.00 13,297.00
2014-03-31 235,494.00 46,240.00 13,297.00
2013-12-31 228,000.00 53,257.00 13,953.00
2013-09-30 228,000.00 53,257.00 13,953.00
2013-06-30 217,486.00 46,900.00 13,658.00
2013-03-31 217,486.00 46,900.00 13,658.00
2012-12-31 209,852.00 50,161.00 12,538.00
2012-09-30 209,901.00 50,161.00 12,538.00
2012-06-30 195,441.00 50,401.00 11,806.00
  • Henderson Land Development's level of debt (27.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (23.3% vs 27.7% today).
  • Debt is not well covered by operating cash flow (4.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.4x coverage).
X
Financial health checks
We assess Henderson Land Development's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Henderson Land Development has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

12 Dividends

 What is Henderson Land Development's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.77%
Current annual income from Henderson Land Development dividends. Estimated to be 4.2% next year.
If you bought HK$2,000 of Henderson Land Development shares you are expected to receive HK$75 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Henderson Land Development's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Henderson Land Development's dividend is below the markets top 25% of dividend payers in Hong Kong (5.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:12 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Hong Kong Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 143 Stocks 4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:12 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.93 10.00
2020-12-31 1.80 15.00
2019-12-31 1.77 13.00
SEHK:12 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-05-28 1.636 3.949
2018-08-23 1.573 4.089
2018-03-21 1.413 3.522
2017-08-22 1.248 2.928
2017-03-21 1.165 3.121
2016-08-23 1.120 3.376
2016-03-21 0.990 3.024
2015-08-20 0.779 2.479
2015-03-23 0.683 1.889
2014-09-18 0.671 2.052
2014-03-20 0.598 2.093
2013-08-22 0.598 2.371
2013-06-17 0.544 2.023
2012-06-11 0.513 1.933
2011-08-25 0.513 2.417
2011-03-17 0.513 2.017
2010-08-26 0.667 2.447
2010-03-30 0.667 2.690
2009-08-28 0.308 1.124

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Henderson Land Development's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Henderson Land Development's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Henderson Land Development afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Henderson Land Development has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

12 Management

 What is the CEO of Henderson Land Development's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Lee
COMPENSATION HK$18,651,000
AGE 46
TENURE AS CEO 1.1 years
CEO Bio

Mr. Ka-Shing Lee, also known as Martin, has been a Joint Chairmen of The Hong Kong and China Gas Company Limited since May 28, 2019. He has been Chairman and Managing Director of Henderson Land Development Company Limited since May 28, 2019 and has been its General Manager since 2019. He has been a Non-Executive Director of The Hong Kong and China Gas Company Limited since September 3, 1999. He has been the Chairman and Managing Director of Henderson Investments Ltd., since July 1, 2015. Mr. Lee has been the Chairman and Chief Executive Officer of Miramar Hotel & Investment Co., Ltd. since June 12, 2014 and June 7, 2012 respectively. He was Deputy General Manager at Henderson Land Development Co. Ltd until May 28, 2019. He served as Managing Director of Miramar Hotel & Investment Co. Ltd. from August 1, 2006 to June 7, 2012. Mr. Lee was Vice Chairman of Henderson Land Development Co. Ltd. since 2005 until May 28, 2019 and it’s Executive Director since December 17, 1993. He served as Vice Chairman of Henderson Investments Limited from 2005 to July 1, 2015. Mr. Lee has been an Executive Director of Henderson China Holdings Ltd. since 1995 and Henderson Cyber Limited since April 2000. He has been an Executive Director of Henderson Investments Limited since 1993. He serves as a Vice Chairman of Henderson Development Limited and a Director of Hopkins (Cayman) Limited (“Hopkins”), Rimmer (Cayman) Limited (“Rimmer”), Riddick (Cayman) Limited (“Riddick”), Disralei Investment Limited (“Disralei Investment”), Medley Investment Limited (“Medley Investment”), Faxson Investment Limited (“Faxson Investment”), Chelco Investment Limited (“Chelco Investment”) and Macrostar Investment Limited (“Macrostar Investment”). He has been an Executive Director of Miramar Hotel and Investment Company Limited since 2004. He serves as a Director at Henderson Land MTN (S) PTE Limited. Mr. Lee serves as a Director of Markshing Investment Limited, Banshing Investment Limited, Believegood Limited, Covite Investment Limited, Best Selection Investments Limited and Felix Technology Limited. Mr. Lee was appointed as a Justice of the Peace by the Government of the Hong Kong Special Administrative Region in 2017. He is also a Committee Member of the 13th Beijing Committee of the Chinese People’s Political Consultative Conference. He is a Member of The Court of The Hong Kong Polytechnic University. He was educated in Canada.

CEO Compensation
  • Martin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Martin's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Henderson Land Development management team in years:

1.1
Average Tenure
68
Average Age
  • The average tenure for the Henderson Land Development management team is less than 2 years, this suggests a new team.
Management Team

Martin Lee

TITLE
Chairman
COMPENSATION
HK$19M
AGE
46
TENURE
1.1 yrs

Peter Lee

TITLE
Chairman
COMPENSATION
HK$21M
AGE
55
TENURE
0.1 yrs

Colin Lam

TITLE
Vice Chairman & Deputy General Manager
COMPENSATION
HK$32M
AGE
67

Shau-Kee Lee

TITLE
Founder & Executive Director
COMPENSATION
HK$23M
AGE
90
TENURE
43.3 yrs

Kwok Lam Suen

TITLE
Executive Director
COMPENSATION
HK$16M
AGE
71

John Yip

TITLE
Executive Director & Assistant General Manager
COMPENSATION
HK$25M
AGE
69

Woon King Fung Lee

TITLE
Treasurer & Executive Director
COMPENSATION
HK$11M
AGE
79

Patrick Kwok

TITLE
Executive Director of Finance Department & Executive Director
COMPENSATION
HK$8M
AGE
65

Eddie Lau

TITLE
Executive Director of Finance Department & Executive Director
COMPENSATION
HK$472K
AGE
72

Augustine Wong

TITLE
Executive Director of Property Development Department & Executive Director
COMPENSATION
HK$26M
AGE
57
Board of Directors Tenure

Average tenure and age of the Henderson Land Development board of directors in years:

24.4
Average Tenure
68
Average Age
  • The average tenure for the Henderson Land Development board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Martin Lee

TITLE
Chairman
COMPENSATION
HK$19M
AGE
46
TENURE
0.1 yrs

Peter Lee

TITLE
Chairman
COMPENSATION
HK$21M
AGE
55
TENURE
0.1 yrs

Colin Lam

TITLE
Vice Chairman & Deputy General Manager
COMPENSATION
HK$32M
AGE
67
TENURE
26.4 yrs

Shau-Kee Lee

TITLE
Founder & Executive Director
COMPENSATION
HK$23M
AGE
90
TENURE
43.3 yrs

Kwok Lam Suen

TITLE
Executive Director
COMPENSATION
HK$16M
AGE
71
TENURE
17.4 yrs

John Yip

TITLE
Executive Director & Assistant General Manager
COMPENSATION
HK$25M
AGE
69
TENURE
22.4 yrs

Woon King Fung Lee

TITLE
Treasurer & Executive Director
COMPENSATION
HK$11M
AGE
79
TENURE
43.4 yrs

Patrick Kwok

TITLE
Executive Director of Finance Department & Executive Director
COMPENSATION
HK$8M
AGE
65
TENURE
26.4 yrs

Eddie Lau

TITLE
Executive Director of Finance Department & Executive Director
COMPENSATION
HK$472K
AGE
72
TENURE
32.4 yrs

Augustine Wong

TITLE
Executive Director of Property Development Department & Executive Director
COMPENSATION
HK$26M
AGE
57
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Henderson Land Development's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Henderson Land Development has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

12 News

Simply Wall St News

Should You Consider Henderson Land Development Company Limited (HKG:12)?

In the case of Henderson Land Development Company Limited (HKG:12), there's is a highly-regarded dividend payer that has been able to sustain great financial health over the past. … SEHK:12 Historical Debt, June 22nd 2019 For those seeking income streams from their portfolio, 12 is a robust dividend payer as well. … SEHK:12 Historical Dividend Yield, June 22nd 2019 Next Steps: For Henderson Land Development, I've compiled three relevant factors you should look at: Future Outlook: What are well-informed industry analysts predicting for 12’s future growth?

Simply Wall St -

Why Henderson Land Development Company Limited (HKG:12) Is A Financially Healthy Company

On top of this, 12 has produced HK$3.8b in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 4.3%, signalling that 12’s current level of operating cash is not high enough to cover debt. … Looking at 12’s HK$62b in current liabilities, the company has been able to meet these commitments with a current assets level of HK$134b, leading to a 2.15x current account ratio. … The current ratio is the number you get when you divide current assets by current liabilities.

Simply Wall St -

Is Henderson Land Development Company Limited (HKG:12) A Smart Pick For Income Investors?

Could Henderson Land Development Company Limited (HKG:12) be an attractive dividend share to own for the long haul? … Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. Henderson Land Development paid out 25% of its profit as dividends, over the trailing twelve month period. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Henderson Land Development paid out 186% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Henderson Land Development paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Henderson Land Development's ability to maintain its dividend. Is Henderson Land Development's Balance Sheet Risky? As Henderson Land Development has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Henderson Land Development has grown its earnings per share at 14% per annum over the past five years. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Does Henderson Land Development Company Limited's (HKG:12) CEO Pay Compare Well With Peers?

Our data indicates that Henderson Land Development Company Limited is worth HK$209b, and total annual CEO compensation is HK$22m. … It would therefore appear that Henderson Land Development Company Limited pays Shau-Kee Lee more than the median CEO remuneration at large companies, in the same market. … We compared total CEO remuneration at Henderson Land Development Company Limited with the amount paid at other large companies.

Simply Wall St -

Why Henderson Land Development Company Limited's (HKG:12) High P/E Ratio Isn't Necessarily A Bad Thing

We'll show how you can use Henderson Land Development Company Limited's (HKG:12) P/E ratio to inform your assessment of the investment opportunity. … Looking at earnings over the last twelve months, Henderson Land Development has a P/E ratio of 6.82. … How Do You Calculate Henderson Land Development's P/E Ratio

Simply Wall St -

When Should You Buy Henderson Land Development Company Limited (HKG:12)?

saw a decent share price growth in the teens level on the SEHK over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

What Kind Of Shareholders Own Henderson Land Development Company Limited (HKG:12)?

If you want to know who really controls Henderson Land Development Company Limited (HKG:12), then you'll have to look at the makeup of its share registry. … Henderson Land Development is a pretty big company. … View our latest analysis for Henderson Land Development

Simply Wall St -

Want To Invest In Henderson Land Development Company Limited (HKG:12)? Here's How It Performed Lately

Investors may find my commentary, albeit very high-level and brief, on Henderson Land Development Company Limited (HKG:12) useful as an attempt to give more color around how Henderson Land Development is currently performing. … See our latest analysis for Henderson Land Development? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which 12 is growing has slowed down

Simply Wall St -

What You Must Know About Henderson Land Development Company Limited's (HKG:12) Financial Health

With a market capitalization of HK$196b, Henderson Land Development Company Limited (HKG:12) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … View our latest analysis for Henderson Land Development?

Simply Wall St -

Can You Imagine How Henderson Land Development's Shareholders Feel About The 69% Share Price Increase?

To wit, the Henderson Land Development share price has climbed 69% in five years, easily topping the market return of 37%. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Henderson Land Development achieved compound earnings per share (EPS) growth of 9.0% per year.

Simply Wall St -

12 Company Info

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 Store Operation, Other Businesses, and Utility and Energy. 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 Store Operation segment operates and manages department stores. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials, as well as disposes leasehold land. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally-friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

Details
Name: Henderson Land Development Company Limited
12
Exchange: SEHK
Founded: 1976
HK$204,548,600,876
4,841,387,003
Website: http://www.hld.com
Address: Henderson Land Development Company Limited
Two International Finance Centre,
72-76 Floors,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 12 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 17. Aug 1981
OTCPK HLDV.F Ordinary Shares Pink Sheets LLC US USD 17. Aug 1981
DB HLD Ordinary Shares Deutsche Boerse AG DE EUR 17. Aug 1981
SHSC 12 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 17. Aug 1981
SZSC 12 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 17. Aug 1981
OTCPK HLDC.Y SPONSORED ADR Pink Sheets LLC US USD 19. Nov 1992
Number of employees
Current staff
Staff numbers
8,954
Henderson Land Development employees.
Industry
Diversified Real Estate Activities
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 12:44
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/21
Last earnings filing: 2019/04/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.