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Hysan DevelopmentSEHK:14 Stock Report

Market Cap

HK$27.5b

7D

0.4%

1Y

4.3%

Updated

17 Oct, 2021

Data

Company Financials +
14 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance1/6
Financial Health3/6
Dividends4/6

14 Overview

Hysan is a leading property investment, management and development company in Hong Kong, with a portfolio of more than 4 million square feet of high-quality office, retail and residential properties.

Price History & Performance

Summary of all time highs, changes and price drops for Hysan Development
Historical stock prices
Current Share PriceHK$26.50
52 Week HighHK$24.00
52 Week LowHK$33.80
Beta0.89
1 Month Change5.16%
3 Month Change-14.24%
1 Year Change4.33%
3 Year Change-29.89%
5 Year Change-25.35%
Change since IPO219.28%

Recent News & Updates

Sep 29
Hysan Development (HKG:14) Has A Somewhat Strained Balance Sheet

Hysan Development (HKG:14) Has A Somewhat Strained Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 07
We Like The Quality Of Hysan Development's (HKG:14) Earnings

We Like The Quality Of Hysan Development's (HKG:14) Earnings

Hysan Development Company Limited's ( HKG:14 ) recent earnings report didn't offer any surprises, with the shares...

Shareholder Returns

14HK Real EstateHK Market
7D0.4%0.03%1.1%
1Y4.3%-12.5%5.3%

Return vs Industry: 14 exceeded the Hong Kong Real Estate industry which returned -12.5% over the past year.

Return vs Market: 14 matched the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 14's price volatile compared to industry and market?
14 volatility
14 Beta0.89
Industry Beta0.85
Market Beta1

Stable Share Price: 14 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 14's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a467n/ahttps://www.hysan.com.hk

Hysan is a leading property investment, management and development company in Hong Kong, with a portfolio of more than 4 million square feet of high-quality office, retail and residential properties. Operating primarily in the city’s prime retail/office district of Causeway Bay, we are focused on delighting our customers and providing investors with outstanding returns.

Hysan Development Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
14 income statement (TTM)
RevenueHK$3.83b
Cost of RevenueHK$489.00m
Gross ProfitHK$3.34b
ExpensesHK$2.74b
EarningsHK$596.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.58
Gross Margin87.23%
Net Profit Margin15.57%
Debt/Equity Ratio30.6%

How did 14 perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

251%

Payout Ratio

Valuation

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

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 14 (HK$26.5) is trading below our estimate of fair value (HK$31.14)

Significantly Below Fair Value: 14 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 14 is poor value based on its PE Ratio (46.1x) compared to the Hong Kong Real Estate industry average (7.4x).

PE vs Market: 14 is poor value based on its PE Ratio (46.1x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 14 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 14 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.4x).


Future Growth

How is Hysan Development forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 14's forecast earnings growth (16% per year) is above the savings rate (1.5%).

Earnings vs Market: 14's earnings (16% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 14's earnings are forecast to grow, but not significantly.

Revenue vs Market: 14's revenue (9.3% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 14's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 14's Return on Equity is forecast to be low in 3 years time (3.2%).


Past Performance

How has Hysan Development performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 14 has a large one-off loss of HK$1.3B impacting its June 30 2021 financial results.

Growing Profit Margin: 14 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 14's earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: 14 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 14 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (23.4%).


Return on Equity

High ROE: 14's Return on Equity (1.3%) is considered low.


Financial Health

How is Hysan Development's financial position?


Financial Position Analysis

Short Term Liabilities: 14's short term assets (HK$11.5B) exceed its short term liabilities (HK$1.8B).

Long Term Liabilities: 14's short term assets (HK$11.5B) do not cover its long term liabilities (HK$27.6B).


Debt to Equity History and Analysis

Debt Level: 14's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: 14's debt to equity ratio has increased from 7.2% to 30.6% over the past 5 years.

Debt Coverage: 14's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: 14's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Dividend

What is Hysan Development current dividend yield, its reliability and sustainability?

5.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 14's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 14's dividend (5.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


Stability and Growth of Payments

Stable Dividend: 14's dividends per share have been stable in the past 10 years.

Growing Dividend: 14's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (251.4%), 14's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 14's dividends in 3 years are forecast to be covered by earnings (59.9% payout ratio).


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Hysan Development has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 14's management team is seasoned and experienced (9.6 years average tenure).


Board Members

Experienced Board: 14's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 14 insiders have only sold shares 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

Hysan Development Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hysan Development Company Limited
  • Ticker: 14
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$27.461b
  • Shares outstanding: 1.04b
  • Website: https://www.hysan.com.hk

Number of Employees


Location

  • Hysan Development Company Limited
  • Lee Garden One
  • 33 Hysan Avenue
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:05
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
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.