Henderson Land Development
Market Cap
HK$154.0b
Last Updated
2020/04/09 12:50 UTC
Data Sources
Company Financials +
Executive Summary
Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.6% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Henderson Land Development's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 12's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
8.6%
12
4.6%
HK Real Estate
3.6%
HK Market
1 Year Return
-29.0%
12
-22.4%
HK Real Estate
-18.5%
HK Market
Return vs Industry: 12 underperformed the Hong Kong Real Estate industry which returned -26.2% over the past year.
Return vs Market: 12 underperformed the Hong Kong Market which returned -22% over the past year.
Shareholder returns
| 12 | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.6% | 4.6% | 3.6% |
| 30 Day | -9.7% | -4.5% | -3.8% |
| 90 Day | -15.4% | -14.4% | -13.2% |
| 1 Year | -26.2%-29.0% | -18.7%-22.4% | -15.5%-18.5% |
| 3 Year | -5.1%-14.2% | 18.1%5.0% | 0.7%-9.5% |
| 5 Year | 2.3%-12.0% | 30.2%8.4% | -14.0%-27.8% |
Price Volatility Vs. Market
How volatile is Henderson Land Development's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Henderson Land Development Company Limited (HKG:12) Analysts Just Trimmed Their Revenue Forecasts By 11%2 months ago | Simply Wall St
We're Not So Sure You Should Rely on Henderson Land Development's (HKG:12) Statutory Earnings3 months ago | Simply Wall St
What Kind Of Investor Owns Most Of Henderson Land Development Company Limited (HKG:12)?Valuation
Is Henderson Land Development undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 12 (HK$30.05) is trading below our estimate of fair value (HK$106.62)
Significantly Below Fair Value: 12 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 12 is poor value based on its PE Ratio (8.6x) compared to the Real Estate industry average (6.3x).
PE vs Market: 12 is good value based on its PE Ratio (8.6x) compared to the Hong Kong market (9.1x).
Price to Earnings Growth Ratio
PEG Ratio: 12's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 12 is overvalued based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.4x).
Next Steps
Future Growth
How is Henderson Land Development forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 12's earnings are forecast to decline over the next 3 years (-4.6% per year).
Earnings vs Market: 12's earnings are forecast to decline over the next 3 years (-4.6% per year).
High Growth Earnings: 12's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 12's revenue (7.1% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).
High Growth Revenue: 12's revenue (7.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 12's Return on Equity is forecast to be low in 3 years time (4.7%).
Next Steps
Past Performance
How has Henderson Land Development performed over the past 5 years?
7.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 12 has high quality earnings.
Growing Profit Margin: 12's current net profit margins (70.3%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: 12's earnings have grown by 7.9% per year over the past 5 years.
Accelerating Growth: 12's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 12 had negative earnings growth (-45.5%) over the past year, making it difficult to compare to the Real Estate industry average (2%).
Return on Equity
High ROE: 12's Return on Equity (5.2%) is considered low.
Next Steps
Financial Health
How is Henderson Land Development's financial position?
Financial Position Analysis
Short Term Liabilities: 12's short term assets (HK$128.8B) exceed its short term liabilities (HK$59.2B).
Long Term Liabilities: 12's short term assets (HK$128.8B) exceed its long term liabilities (HK$70.7B).
Debt to Equity History and Analysis
Debt Level: 12's debt to equity ratio (29%) is considered satisfactory.
Reducing Debt: 12's debt to equity ratio has increased from 20.2% to 29% over the past 5 years.
Debt Coverage: 12's debt is well covered by operating cash flow (25.4%).
Interest Coverage: 12 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Henderson Land Development's current dividend yield, its reliability and sustainability?
5.58%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 12's dividend (5.99%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.65%).
High Dividend: 12's dividend (5.99%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.26%).
Stability and Growth of Payments
Stable Dividend: 12's dividend payments have been volatile in the past 10 years.
Growing Dividend: 12's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.3%), 12's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 12's dividends in 3 years are forecast to be covered by earnings (57.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Martin Lee (47yo)
1.92s
Tenure
HK$18,251,000
Compensation
Mr. Ka-Shing Lee, also known as Martin, has been a Joint Chairmen of The Hong Kong and China Gas Company Limited since May 28, 2019. He has been Chairman and Managing Director of Henderson Land Developmen ...
CEO Compensation Analysis
Compensation vs Market: Martin's total compensation ($USD2.35M) is above average for companies of similar size in the Hong Kong market ($USD985.88K).
Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.92yrs | HK$18.25m | no data | |
| Chairman | 0.92yr | HK$20.93m | no data | |
| Vice Chairman & Deputy General Manager | 27.25yrs | HK$31.80m | no data | |
| Founder & Executive Director | 44.17yrs | HK$22.58m | 0.38% HK$587.4m | |
| Executive Director of Finance Department | 33.25yrs | HK$172.00k | no data | |
| Executive Director | 18.25yrs | HK$15.61m | no data | |
| Executive Director & Assistant General Manager | 23.25yrs | HK$24.57m | no data | |
| Treasurer & Executive Director | 44.25yrs | HK$10.70m | 0.051% HK$79.3m | |
| Executive Director of Finance Department & Executive Director | 27.25yrs | HK$7.02m | no data | |
| Executive Director of Property Development Department & Executive Director | 9.58yrs | HK$25.93m | no data |
1.9yrs
Average Tenure
69yo
Average Age
Experienced Management: 12's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.92yrs | HK$18.25m | no data | |
| Chairman | 0.92yr | HK$20.93m | no data | |
| Vice Chairman & Deputy General Manager | 27.25yrs | HK$31.80m | no data | |
| Founder & Executive Director | 44.17yrs | HK$22.58m | 0.38% HK$587.4m | |
| Executive Director of Finance Department | 33.25yrs | HK$172.00k | no data | |
| Executive Director | 18.25yrs | HK$15.61m | no data | |
| Executive Director & Assistant General Manager | 23.25yrs | HK$24.57m | no data | |
| Treasurer & Executive Director | 44.25yrs | HK$10.70m | 0.051% HK$79.3m | |
| Executive Director of Finance Department & Executive Director | 27.25yrs | HK$7.02m | no data | |
| Executive Director of Property Development Department & Executive Director | 9.58yrs | HK$25.93m | no data |
25.3yrs
Average Tenure
69yo
Average Age
Experienced Board: 12's board of directors are seasoned and experienced ( 25.3 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Henderson Land Development Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Henderson Land Development Company Limited
- Ticker: 12
- Exchange: SEHK
- Founded: 1976
- Industry: Diversified Real Estate Activities
- Sector: Real Estate
- Market Cap: HK$153.956b
- Shares outstanding: 4.84b
- Website: https://www.hld.com
Number of Employees
Location
- Henderson Land Development Company Limited
- Two International Finance Centre
- 72-76 Floors
- Central
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HLDV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 1981 |
| 12 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Aug 1981 |
| HLD | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 1981 |
| 12 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Aug 1981 |
| 12 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Aug 1981 |
| HLDC.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Nov 1992 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 12:50 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.