SEHK:51

Stock Analysis Report

Harbour Centre Development

Executive Summary

Harbour Centre Development Limited, an investment holding company, engages in the hotel ownership and property investment activities in Hong Kong, Mainland China, and internationally.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Harbour Centre Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

51

-1.9%

HK Real Estate

-0.6%

HK Market


1 Year Return

-12.3%

51

9.8%

HK Real Estate

0.9%

HK Market

Return vs Industry: 51 underperformed the Hong Kong Real Estate industry which returned 9.8% over the past year.

Return vs Market: 51 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

51IndustryMarket
7 Day-2.0%-1.9%-0.6%
30 Day-3.5%2.8%0.8%
90 Day-7.9%-8.9%-5.7%
1 Year-10.4%-12.3%13.9%9.8%4.6%0.9%
3 Year-2.5%-11.6%36.9%22.6%15.8%4.2%
5 Year7.8%-11.1%58.3%32.8%17.8%-1.9%

Price Volatility Vs. Market

How volatile is Harbour Centre Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Harbour Centre 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: 51 (HK$12.54) is trading below our estimate of fair value (HK$54.64)

Significantly Below Fair Value: 51 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 51 is poor value based on its PE Ratio (12x) compared to the Real Estate industry average (6.3x).

PE vs Market: 51 is poor value based on its PE Ratio (12x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 51's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 51 is overvalued based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Harbour Centre Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 51's forecast earnings growth (15.5% per year) is above the savings rate (2%).

Earnings vs Market: 51's earnings (15.5% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 51's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 51's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 51's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 51's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Harbour Centre Development performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 51's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: 51's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 51 had negative earnings growth (-34%) over the past year, making it difficult to compare to the Real Estate industry average (-12.8%).


Return on Equity

High ROE: 51's Return on Equity (4.1%) is considered low.


Return on Assets

ROA vs Industry: 51 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 51's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Harbour Centre Development's financial position?


Financial Position Analysis

Short Term Liabilities: 51's short term assets (HK$7.5B) exceeds its short term liabilities (HK$6.8B)

Long Term Liabilities: 51's short term assets (7.5B) exceeds its long term liabilities (2.8B)


Debt to Equity History and Analysis

Debt Level: 51's debt to equity ratio (14.2%) is considered satisfactory

Reducing Debt: 51's debt to equity ratio has reduced from 39.8% to 14.2% over the past 5 years.

Debt Coverage: 51's debt is well covered by operating cash flow (85.4%).

Interest Coverage: 51's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet

Inventory Level: 51 has a high level of physical assets or inventory.

Debt Coverage by Assets: 51's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Harbour Centre Development's current dividend yield, its reliability and sustainability?

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.3%markettop25%6.2%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 51's dividend (2.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 51's dividend (2.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.22%).

Stable Dividend: 51's dividend payments have been volatile in the past 10 years.

Growing Dividend: 51's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), 51's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.2yrs

Average board tenure


CEO

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


Board Age and Tenure

4.2yrs

Average Tenure

67yo

Average Age

Experienced Board: 51's board of directors are considered experienced (4.2 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


Management Team

  • Kevin Hui (62yo)

    Company Secretary & Non-executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$60.00k
  • Catherine Tsang

    Investor Relations Manager

    • Tenure: 0yrs
  • IR Contact

    Investor Relations Contact

    • Tenure: 0yrs

Board Members

  • Stephen Ng (67yo)

    Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: HK$1.14m
  • Roger Luk (68yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$40.00k
  • Michael Sze (74yo)

    Independent Non-executive Director

    • Tenure: 12.4yrs
    • Compensation: HK$85.00k
  • Kevin Hui (62yo)

    Company Secretary & Non-executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$60.00k
  • David Lie-A-Cheong (60yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: HK$5.00k
  • Ivan Ting (44yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: HK$5.00k
  • Brian Tang (69yo)

    Independent Non-executive Director

    • Tenure: 11.1yrs
    • Compensation: HK$85.00k
  • Frankie Yick (65yo)

    Non-executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$60.00k
  • Peter Pao (68yo)

    Non-executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$35.00k

Company Information

Harbour Centre Development Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harbour Centre Development Limited
  • Ticker: 51
  • Exchange: SEHK
  • Founded: 1965
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$8.990b
  • Shares outstanding: 709.00m
  • Website: https://www.harbourcentre.com.hk

Number of Employees


Location

  • Harbour Centre Development Limited
  • Ocean Centre
  • 16th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
51SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Harbour Centre Development Limited, an investment holding company, engages in the hotel ownership and property investment activities in Hong Kong, Mainland China, and internationally. The company operates  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:40
End of Day Share Price2019/10/23 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.