OTCPK:HDVT.Y

Stock Analysis Report

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Executive Summary

Henderson Investment Limited, an investment holding company, engages in the operation of department stores in Hong Kong. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Henderson Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HDVT.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

HDVT.Y

-4.8%

US Multiline Retail

-5.3%

US Market


1 Year Return

-37.2%

HDVT.Y

16.8%

US Multiline Retail

10.4%

US Market

Return vs Industry: HDVT.Y underperformed the US Multiline Retail industry which returned 19.5% over the past year.

Return vs Market: HDVT.Y underperformed the US Market which returned 12% over the past year.


Shareholder returns

HDVT.YIndustryMarket
7 Day0%-4.8%-5.3%
30 Day-25.8%-2.1%-2.1%
90 Dayn/a11.7%1.7%
1 Year-35.1%-37.2%18.7%16.8%12.9%10.4%
3 Year-33.4%-41.7%89.6%78.8%34.3%25.4%
5 Year-15.7%-33.8%87.4%64.4%73.7%54.3%

Price Volatility Vs. Market

How volatile is Henderson Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Henderson Investment 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: HDVT.Y ($0.25) is trading below our estimate of fair value ($2.91)

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


Price To Earnings Ratio

PE vs Industry: HDVT.Y is good value based on its PE Ratio (10.4x) compared to the US Multiline Retail industry average (22.8x).

PE vs Market: HDVT.Y is good value based on its PE Ratio (10.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HDVT.Y is good value based on its PB Ratio (0.7x) compared to the US Multiline Retail industry average (3.2x).


Next Steps

Future Growth

How is Henderson Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Henderson Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Henderson Investment is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Henderson Investment's filings and announcementshere.
  • Explore growth companies in the Retail industry.

Past Performance

How has Henderson Investment performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDVT.Y has high quality earnings.

Growing Profit Margin: HDVT.Y's current net profit margins (5.4%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: HDVT.Y's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: HDVT.Y's earnings growth over the past year (27.2%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: HDVT.Y earnings growth over the past year (27.2%) underperformed the Multiline Retail industry 43.6%.


Return on Equity

High ROE: HDVT.Y's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Henderson Investment's financial position?


Financial Position Analysis

Short Term Liabilities: HDVT.Y's short term assets (HK$525.0M) do not cover its short term liabilities (HK$631.0M).

Long Term Liabilities: HDVT.Y's short term assets (HK$525.0M) do not cover its long term liabilities (HK$549.0M).


Debt to Equity History and Analysis

Debt Level: HDVT.Y is debt free.

Reducing Debt: HDVT.Y had no debt 5 years ago.

Debt Coverage: HDVT.Y has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HDVT.Y has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Henderson Investment current dividend yield, its reliability and sustainability?

6.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDVT.Y's dividend (6.56%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: HDVT.Y's dividend (6.56%) is in the top 25% of dividend payers in the US market (4.78%)


Stability and Growth of Payments

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

Growing Dividend: HDVT.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.5%), HDVT.Y's dividend payments are 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

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

15.9yrs

Average board tenure


CEO

Martin Lee (48 yo)

5.25yrs

Tenure

HK$50,000

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 Development ...


Board Members

NamePositionTenureCompensationOwnership
Ka-Shing Lee
Chairman & MD5.25yrsHK$50.00kno data
Ko Yin Lam
Vice Chairman27.75yrsHK$50.00kno data
Ka-Kit Lee
Vice Chairman27.75yrsHK$50.00kno data
Ning Li
Executive Director5.83yrsHK$50.00kno data
Ping Keung Ko
Independent Non-Executive Director16yrsHK$250.00kno data
Che Keung Kwong
Independent Non-Executive Director16.17yrsHK$250.00kno data
King Cheong Wu
Independent Non-Executive Director15.75yrsHK$250.00kno data
Siu Kee Au
Independent Non-Executive Director5.25yrsHK$250.00kno data

15.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: HDVT.Y's board of directors are seasoned and experienced ( 15.9 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 Investment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Henderson Investment Limited
  • Ticker: HDVT.Y
  • Exchange: OTCPK
  • Founded:
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: HK$929.435m
  • Listing Market Cap: HK$119.852m
  • Shares outstanding: 3.05b
  • Website: https://www.hilhk.com

Number of Employees


Location

  • Henderson Investment Limited
  • Two International Finance Centre
  • 72-76 Floors
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
97SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
HDVT.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1995

Biography

Henderson Investment Limited, an investment holding company, engages in the operation of department stores in Hong Kong. It operates six department stores under the Citistore name; and two general merchand ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:09
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.