SEHK:12

Stock Analysis Report

Henderson Land Development

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.

Snowflake

Fundamentals

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.8%

12

-6.0%

HK Real Estate

-4.2%

HK Market


1 Year Return

5.7%

12

1.7%

HK Real Estate

-2.6%

HK Market

Return vs Industry: 12 exceeded the Hong Kong Real Estate industry which returned 1.7% over the past year.

Return vs Market: 12 exceeded the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

12IndustryMarket
7 Day-6.8%-6.0%-4.2%
30 Day-5.0%-2.9%-1.4%
90 Day-3.8%1.6%3.5%
1 Year9.8%5.7%5.7%1.7%0.9%-2.6%
3 Year29.4%16.9%43.3%29.4%19.6%7.6%
5 Year34.6%15.8%58.5%33.1%18.6%-1.0%

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

Valuation

Is Henderson Land Development undervalued compared to its fair value and its price relative to the market?

7.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 12 (HK$36.8) is trading above our estimate of fair value (HK$29.89)

Significantly Below Fair Value: 12 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 12 is poor value based on its PE Ratio (7.5x) compared to the Real Estate industry average (6.2x).

PE vs Market: 12 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (10.1x).


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 (0.6x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Henderson Land Development forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-1.0%

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 (-1% per year).

Earnings vs Market: 12's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: 12's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 12's revenue (8.6% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 12's revenue (8.6% 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 (5.3%).


Next Steps

Past Performance

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

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 12 has large one-off items impacting its financial results.

Growing Profit Margin: 12's current net profit margins (139.3%) are higher than last year (116.1%).


Past Earnings Growth Analysis

Earnings Trend: 12's earnings have grown by 13.2% 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 (-27.8%) over the past year, making it difficult to compare to the Real Estate industry average (-13%).


Return on Equity

High ROE: 12's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Henderson Land Development's financial position?


Financial Position Analysis

Short Term Liabilities: 12's short term assets (HK$132.9B) exceeds its short term liabilities (HK$64.4B)

Long Term Liabilities: 12's short term assets (132.9B) exceeds its long term liabilities (65.3B)


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 19.6% to 29% over the past 5 years.

Debt Coverage: 12's debt is well covered by operating cash flow (25.9%).

Interest Coverage: 12 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 12 has a high level of physical assets or inventory.

Debt Coverage by Assets: 12's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

4.89%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.3%markettop25%6.4%industryaverage4.6%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: 12's dividend (4.89%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 12's dividend (4.89%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.38%).


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 reasonably low payout ratio (34.4%), 12's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 12's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Martin Lee (47yo)

1.5yrs

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 ($USD2.33M) is above average for companies of similar size in the Hong Kong market ($USD815.37K).

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


Management Age and Tenure

1.5yrs

Average Tenure

69yo

Average Age

Experienced Management: 12's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

24.8yrs

Average Tenure

69yo

Average Age

Experienced Board: 12's board of directors are seasoned and experienced ( 24.8 years average tenure).


Insider Trading

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.


Management Team

  • Shau-Kee Lee (91yo)

    Founder & Executive Director

    • Tenure: 43.8yrs
    • Compensation: HK$22.58m
  • Augustine Wong (58yo)

    Executive Director of Property Development Department & Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$25.93m
  • Peter Lee (56yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: HK$20.93m
  • Martin Lee (47yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$18.25m
  • Colin Lam (68yo)

    Vice Chairman & Deputy General Manager

    • Tenure: 26.8yrs
    • Compensation: HK$31.80m
  • Eddie Lau (73yo)

    Executive Director of Finance Department & Executive Director

    • Tenure: 32.8yrs
    • Compensation: HK$172.00k
  • Kwok Lam Suen (72yo)

    Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$15.61m
  • John Yip (70yo)

    Executive Director & Assistant General Manager

    • Tenure: 22.8yrs
    • Compensation: HK$24.57m
  • Patrick Kwok (66yo)

    Executive Director of Finance Department & Executive Director

    • Tenure: 26.8yrs
    • Compensation: HK$7.02m
  • Woon King Fung Lee (80yo)

    Treasurer & Executive Director

    • Tenure: 43.8yrs
    • Compensation: HK$10.70m

Board Members

  • Shau-Kee Lee (91yo)

    Founder & Executive Director

    • Tenure: 43.8yrs
    • Compensation: HK$22.58m
  • Augustine Wong (58yo)

    Executive Director of Property Development Department & Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$25.93m
  • Peter Lee (56yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: HK$20.93m
  • Martin Lee (47yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$18.25m
  • Colin Lam (68yo)

    Vice Chairman & Deputy General Manager

    • Tenure: 26.8yrs
    • Compensation: HK$31.80m
  • Eddie Lau (73yo)

    Executive Director of Finance Department & Executive Director

    • Tenure: 32.8yrs
    • Compensation: HK$172.00k
  • Kwok Lam Suen (72yo)

    Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$15.61m
  • John Yip (70yo)

    Executive Director & Assistant General Manager

    • Tenure: 22.8yrs
    • Compensation: HK$24.57m
  • Patrick Kwok (66yo)

    Executive Director of Finance Department & Executive Director

    • Tenure: 26.8yrs
    • Compensation: HK$7.02m
  • Woon King Fung Lee (80yo)

    Treasurer & Executive Director

    • Tenure: 43.8yrs
    • Compensation: HK$10.70m

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$178.163b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLDV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1981
12SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 1981
HLDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1981
12SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 1981
12SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 1981
HLDC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 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 Proper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:38
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.