SGX:H78

Stock Analysis Report

Hongkong Land Holdings

Executive Summary

Hongkong Land Holdings Limited, together with its subsidiaries, engages in the investment, development, and management of real estate properties in Greater China, Southeast Asia, and internationally.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Hongkong Land Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: H78 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

H78

-0.3%

SG Real Estate

0.1%

SG Market


1 Year Return

-17.7%

H78

1.7%

SG Real Estate

5.2%

SG Market

Return vs Industry: H78 underperformed the SG Real Estate industry which returned 1.7% over the past year.

Return vs Market: H78 underperformed the SG Market which returned 5.2% over the past year.


Shareholder returns

H78IndustryMarket
7 Day-2.2%-0.3%0.1%
30 Day-4.2%1.0%2.6%
90 Day-5.4%0.4%2.4%
1 Year-15.0%-17.7%4.8%1.7%9.5%5.2%
3 Year-8.7%-16.3%8.3%-0.3%20.4%7.6%
5 Year-11.5%-23.4%0.6%-12.6%11.8%-6.9%

Price Volatility Vs. Market

How volatile is Hongkong Land Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hongkong Land Holdings undervalued compared to its fair value and its price relative to the market?

7.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: H78 ($5.27) is trading above our estimate of fair value ($4.38)

Significantly Below Fair Value: H78 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: H78 is good value based on its PE Ratio (7.1x) compared to the Real Estate industry average (10.1x).

PE vs Market: H78 is good value based on its PE Ratio (7.1x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: H78's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: H78 is good value based on its PB Ratio (0.3x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Hongkong Land Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H78's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: H78's earnings are forecast to decline over the next 3 years (-2.1% per year).

High Growth Earnings: H78's earnings are forecast to decline over the next 3 years.

Revenue vs Market: H78's revenue (12.3% per year) is forecast to grow faster than the SG market (5.5% per year).

High Growth Revenue: H78's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: H78's Return on Equity is forecast to be low in 3 years time (3%).


Next Steps

Past Performance

How has Hongkong Land Holdings performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H78 has large one-off items impacting its financial results.

Growing Profit Margin: H78's current net profit margins (89.3%) are lower than last year (156.5%).


Past Earnings Growth Analysis

Earnings Trend: H78's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: H78's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H78 had negative earnings growth (-51.9%) over the past year, making it difficult to compare to the Real Estate industry average (-9.3%).


Return on Equity

High ROE: H78's Return on Equity (4.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hongkong Land Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: H78's short term assets ($4.2B) exceeds its short term liabilities ($2.5B)

Long Term Liabilities: H78's short term assets ($4.2B) do not cover its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: H78's debt to equity ratio (13.1%) is considered satisfactory.

Reducing Debt: H78's debt to equity ratio has reduced from 16.8% to 13.1% over the past 5 years.

Debt Coverage: H78's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: H78's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet

Inventory Level: H78 has a low level of unsold assets or inventory.

Debt Coverage by Assets: H78's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Hongkong Land Holdings's current dividend yield, its reliability and sustainability?

4.17%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.5%markettop25%5.5%industryaverage3.2%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: H78's dividend (4.17%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: H78's dividend (4.17%) is low compared to the top 25% of dividend payers in the SG market (5.47%).


Stability and Growth of Payments

Stable Dividend: H78's dividends per share have been stable in the past 10 years.

Growing Dividend: H78's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), H78's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H78's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Robert Wong (57yo)

3.3yrs

Tenure

0

Mr. Yau Chung Wong, also known as Robert, has been Chief Executive and Executive Director of Hongkong Land Holdings Limited since August 1, 2016. Mr. Wong has been Managing Director of The Hongkong Land Co ...


Management Age and Tenure

3.6yrs

Average Tenure

57yo

Average Age

Experienced Management: H78's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

12.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: H78's board of directors are seasoned and experienced ( 12 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

  • Ben Keswick (72yo)

    Chairman & MD

    • Tenure: 6.5yrs
  • Robert Wong (57yo)

    Chief Executive & Executive Director

    • Tenure: 3.3yrs
  • Simon Collier Dixon (46yo)

    CFO & Executive Director

    • Tenure: 3.6yrs
  • Jennifer Lam

    Head of Marketing & Communications

    • Tenure: 7.2yrs
  • Jonathan Lloyd

    Company Secretary

    • Tenure: 1.8yrs

Board Members

  • Edward Percy Keswick Weatherall (62yo)

    Director

    • Tenure: 25.8yrs
  • Simon Lindley Keswick (76yo)

    Non-Executive Director

    • Tenure: 36.8yrs
  • Charles Powell (78yo)

    Director

    • Tenure: 11.4yrs
  • Mark Spencer Greenberg (50yo)

    Director

    • Tenure: 13.4yrs
  • Anthony John Liddell Nightingale (72yo)

    Director

    • Tenure: 13.6yrs
  • Adam Phillip Charles Keswick (46yo)

    Director

    • Tenure: 7.6yrs
  • Yiu Kai Pang (59yo)

    Director

    • Tenure: 12.6yrs
  • Ben Keswick (72yo)

    Chairman & MD

    • Tenure: 6.5yrs
  • Robert Wong (57yo)

    Chief Executive & Executive Director

    • Tenure: 3.3yrs
  • Simon Collier Dixon (46yo)

    CFO & Executive Director

    • Tenure: 3.6yrs

Company Information

Hongkong Land Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hongkong Land Holdings Limited
  • Ticker: H78
  • Exchange: SGX
  • Founded: 1889
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: US$12.533b
  • Shares outstanding: 2.33b
  • Website: https://www.hkland.com

Number of Employees


Location

  • Hongkong Land Holdings Limited
  • One Exchange Square
  • 8th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HKHG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HKLBLSE (London Stock Exchange)YesOrdinary SharesGBUSDJan 1992
HKLJLSE (London Stock Exchange)YesOrdinary SharesGBUSDJan 1992
HKLDLSE (London Stock Exchange)YesOrdinary SharesGBUSDJan 1992
H78SGX (Singapore Exchange)YesOrdinary SharesSGUSDJan 1992
HLHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HNGK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJun 2004

Biography

Hongkong Land Holdings Limited, together with its subsidiaries, engages in the investment, development, and management of real estate properties in Greater China, Southeast Asia, and internationally. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 12:43
End of Day Share Price2019/11/21 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.