OTCPK:HLPP.Y

Stock Analysis Report

Executive Summary

Hang Lung Properties Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong and Mainland China.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Hang Lung Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.8%

HLPP.Y

-10.9%

US Real Estate

-10.6%

US Market


1 Year Return

-5.9%

HLPP.Y

-1.6%

US Real Estate

5.2%

US Market

Return vs Industry: HLPP.Y underperformed the US Real Estate industry which returned 0.5% over the past year.

Return vs Market: HLPP.Y underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

HLPP.YIndustryMarket
7 Day-3.8%-10.9%-10.6%
30 Day3.7%-9.8%-8.5%
90 Day8.8%-5.2%-4.6%
1 Year-2.3%-5.9%-0.8%-1.6%7.4%5.2%
3 Year0.3%-10.5%13.5%10.7%31.7%23.2%
5 Year-4.2%-20.6%5.7%2.2%56.4%39.3%

Price Volatility Vs. Market

How volatile is Hang Lung Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hang Lung Properties undervalued compared to its fair value and its price relative to the market?

12.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLPP.Y ($11.42) is trading above our estimate of fair value ($6.14)

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


Price To Earnings Ratio

PE vs Industry: HLPP.Y is good value based on its PE Ratio (12.9x) compared to the Real Estate industry average (21.4x).

PE vs Market: HLPP.Y is good value based on its PE Ratio (12.9x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HLPP.Y is good value based on its PB Ratio (0.6x) compared to the US Real Estate industry average (1.3x).


Next Steps

Future Growth

How is Hang Lung Properties forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLPP.Y's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: HLPP.Y's earnings are forecast to decline over the next 3 years (-2.4% per year).

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

Revenue vs Market: HLPP.Y's revenue (10.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HLPP.Y's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLPP.Y's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Hang Lung Properties performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLPP.Y has a large one-off gain of HK$8.8B impacting its December 31 2019 financial results.

Growing Profit Margin: HLPP.Y's current net profit margins (69.7%) are lower than last year (85%).


Past Earnings Growth Analysis

Earnings Trend: HLPP.Y's earnings have declined by -5.2% per year over the past 5 years.

Accelerating Growth: HLPP.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: HLPP.Y had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Real Estate industry average (-31.1%).


Return on Equity

High ROE: HLPP.Y's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Hang Lung Properties's financial position?


Financial Position Analysis

Short Term Liabilities: HLPP.Y's short term assets (HK$11.2B) do not cover its short term liabilities (HK$12.4B).

Long Term Liabilities: HLPP.Y's short term assets (HK$11.2B) do not cover its long term liabilities (HK$39.7B).


Debt to Equity History and Analysis

Debt Level: HLPP.Y's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: HLPP.Y's debt to equity ratio has reduced from 25.3% to 20.5% over the past 5 years.

Debt Coverage: HLPP.Y's debt is not well covered by operating cash flow (15.6%).

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


Balance Sheet

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

Debt Coverage by Assets: HLPP.Y's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Hang Lung Properties's current dividend yield, its reliability and sustainability?

4.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLPP.Y's dividend (4.28%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: HLPP.Y's dividend (4.28%) is in the top 25% of dividend payers in the US market (3.96%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), HLPP.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLPP.Y's dividends in 3 years are forecast to be covered by earnings (64.3% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Weber Lo (48yo)

1.6yrs

Tenure

HK$32,880,000

Compensation

Mr. Wai Pak Lo, also known as Weber, has been an Executive Director of Hang Lung Group Limited and Hang Lung Properties Limited since joining in May 16, 2018. He serves as Chief Executive Officer of Hang L ...


CEO Compensation Analysis

Compensation vs Market: Weber's total compensation ($USD4.22M) is below average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Insufficient data to compare Weber's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Chichung Chan
Chairman of the Board29.1yrsHK$38.70m0.36% HK$37.2m
Wai Pak Lo
CEO & Director1.6yrsHK$32.88mno data
Hau Cheong Ho
CFO & Executive Director9.4yrsHK$9.50mno data
Wenbwo Chan
Executive Director3.3yrsHK$9.30mno data
Chuk Fai Kwan
Director of Corporate Communications & Investor Relations0yrsno datano data
Ka Man Yan
General Counsel & Company Secretary0yrsno datano data
Wing Chan
Director of Marketing0yrsno datano data
Janet Shun Poon
Deputy Director of Human Resources0.8yrsno datano data
Wai Man Mak
Group Financial Controller & Director8.6yrsno datano data

1.6yrs

Average Tenure

54yo

Average Age

Experienced Management: HLPP.Y's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chichung Chan
Chairman of the Board29.1yrsHK$38.70m0.36% HK$37.2m
Wai Pak Lo
CEO & Director1.6yrsHK$32.88mno data
Hau Cheong Ho
CFO & Executive Director9.4yrsHK$9.50mno data
Wenbwo Chan
Executive Director3.3yrsHK$9.30mno data
Ronald Joseph Arculli
Independent Non-Executive Director40.1yrsHK$900.00k0.016% HK$1.7m
Nan Lok Chen
Non-Executive Director9.6yrsHK$59.40mno data
Wai Leung Yuen
Independent Non-Executive Director28.1yrsHK$700.00k0.18% HK$18.2m
Hsin-Kang Chang
Independent Non-Executive Director4.8yrsHK$1.00mno data
Chiu Ho
Independent Non-Executive Director11.8yrsHK$1.10mno data
Ka Ching Chan
Independent Non-Executive Director5.3yrsHK$900.00kno data

9.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: HLPP.Y's board of directors are considered experienced (9.5 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

Hang Lung Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hang Lung Properties Limited
  • Ticker: HLPP.Y
  • Exchange: OTCPK
  • Founded: 1949
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$79.879b
  • Listing Market Cap: HK$10.249b
  • Shares outstanding: 4.50b
  • Website: https://www.hanglung.com

Number of Employees


Location

  • Hang Lung Properties Limited
  • Standard Chartered Bank Building
  • 28th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AOPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
101SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
101SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
101SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
HLPP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 1995

Biography

Hang Lung Properties Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong and Mainland China. The company operates through Property Leasing in Mainland China, Property Leasing in Hong Kong, and Property Sales in Hong Kong segments. The company is involved in the property leasing business; and development and sale of properties. Its investment properties portfolio includes retail, office, residential, serviced apartment, and car park properties. The company also engages in the apartment operating and management; car park and project management; and property agency activities. In addition, it provides management and financial services. The company was incorporated in 1949 and is headquartered in Central, Hong Kong. Hang Lung Properties Limited is a subsidiary of Hang Lung Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:14
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.