OTCPK:HLDC.Y

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 Analysis

Excellent balance sheet established 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: HLDC.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

HLDC.Y

-1.6%

US Real Estate

-1.1%

US Market


1 Year Return

-10.9%

HLDC.Y

6.5%

US Real Estate

17.9%

US Market

Return vs Industry: HLDC.Y underperformed the US Real Estate industry which returned 6.5% over the past year.

Return vs Market: HLDC.Y underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

HLDC.YIndustryMarket
7 Day-2.9%-1.6%-1.1%
30 Day-2.8%1.5%1.4%
90 Day-6.3%7.4%6.9%
1 Year-7.7%-10.9%7.4%6.5%20.3%17.9%
3 Year15.0%4.8%27.7%24.6%47.8%38.3%
5 Year24.9%9.0%15.0%11.2%71.9%53.0%

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

No news available

Valuation

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

10.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLDC.Y ($4.62) is trading below our estimate of fair value ($5.17)

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


Price To Earnings Ratio

PE vs Industry: HLDC.Y is good value based on its PE Ratio (7.4x) compared to the Real Estate industry average (22.8x).

PE vs Market: HLDC.Y is good value based on its PE Ratio (7.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HLDC.Y is good value based on its PB Ratio (0.6x) compared to the US Real Estate industry average (1.4x).


Next Steps

Future Growth

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

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLDC.Y's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: HLDC.Y's earnings are forecast to decline over the next 3 years (-3.2% per year).

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

Revenue vs Market: HLDC.Y's revenue (5.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HLDC.Y's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLDC.Y's Return on Equity is forecast to be low in 3 years time (5.1%).


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: HLDC.Y has a large one-off gain of HK$8.8B impacting its June 30 2019 financial results.

Growing Profit Margin: HLDC.Y's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: HLDC.Y's earnings have grown by 13.2% per year over the past 5 years.

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

Earnings vs Industry: HLDC.Y had negative earnings growth (-27.8%) over the past year, making it difficult to compare to the Real Estate industry average (-31.1%).


Return on Equity

High ROE: HLDC.Y'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: HLDC.Y's short term assets (HK$132.9B) exceed its short term liabilities (HK$64.4B).

Long Term Liabilities: HLDC.Y's short term assets (HK$132.9B) exceed its long term liabilities (HK$65.3B).


Debt to Equity History and Analysis

Debt Level: HLDC.Y's debt to equity ratio (29%) is considered satisfactory.

Reducing Debt: HLDC.Y's debt to equity ratio has increased from 19.6% to 29% over the past 5 years.

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

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


Balance Sheet

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

Debt Coverage by Assets: HLDC.Y'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?

4.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLDC.Y's dividend (4.99%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HLDC.Y's dividend (4.99%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.4%), HLDC.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLDC.Y's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Martin Lee (47yo)

1.8yrs

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 ($USD2.34M) is below average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ka-Shing Lee
Chairman1.8yrsHK$18.25mno data
Ka-Kit Lee
Chairman0.8yrsHK$20.93mno data
Ko Yin Lam
Vice Chairman & Deputy General Manager27.1yrsHK$31.80mno data
Shau-Kee Lee
Founder & Executive Director44yrsHK$22.58m0.38% HK$85.5m
Kwok Lam Suen
Executive Director18.1yrsHK$15.61mno data
Ying Chee Yip
Executive Director & Assistant General Manager23.1yrsHK$24.57mno data
Woon King Fung Lee
Treasurer & Executive Director44.1yrsHK$10.70m0.051% HK$11.5m
Ping Ho Kwok
Executive Director of Finance Department & Executive Director27.1yrsHK$7.02mno data
Yum Chuen Lau
Executive Director of Finance Department & Executive Director33.1yrsHK$172.00kno data
Ho Ming Wong
Executive Director of Property Development Department & Executive Director9.4yrsHK$25.93mno data

1.8yrs

Average Tenure

69yo

Average Age

Experienced Management: HLDC.Y's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ka-Shing Lee
Chairman1.8yrsHK$18.25mno data
Ka-Kit Lee
Chairman0.8yrsHK$20.93mno data
Ko Yin Lam
Vice Chairman & Deputy General Manager27.1yrsHK$31.80mno data
Shau-Kee Lee
Founder & Executive Director44yrsHK$22.58m0.38% HK$85.5m
Kwok Lam Suen
Executive Director18.1yrsHK$15.61mno data
Ying Chee Yip
Executive Director & Assistant General Manager23.1yrsHK$24.57mno data
Woon King Fung Lee
Treasurer & Executive Director44.1yrsHK$10.70m0.051% HK$11.5m
Ping Ho Kwok
Executive Director of Finance Department & Executive Director27.1yrsHK$7.02mno data
Yum Chuen Lau
Executive Director of Finance Department & Executive Director33.1yrsHK$172.00kno data
Ho Ming Wong
Executive Director of Property Development Department & Executive Director9.4yrsHK$25.93mno data

25.1yrs

Average Tenure

69yo

Average Age

Experienced Board: HLDC.Y's board of directors are seasoned and experienced ( 25.1 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: HLDC.Y
  • Exchange: OTCPK
  • Founded: 1976
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$174.532b
  • Listing Market Cap: HK$22.411b
  • 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:06
End of Day Share Price2020/02/21 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.