Hang Lung Properties Ltd.

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Company Background

Hang Lung Properties is a major Hong Kong real estate developer. It operates a number of upscale shopping malls in mainland China.

After its founding in 1960, the company grew rapidly by building large condominiums along subway lines in Hong Kong. In the Causeway Bay commercial district on Hong Kong Island, the company operates such shopping malls as Fashion Walk and Hang Lung Center, where H&M and other global fashion houses have their flagship stores.

Hang Lung entered mainland China in the early 1990s. In Shanghai's Nanjing Xi Lu shopping district, it opened Plaza 66, a 66-story office building and mall complex that houses the flagship stores of such luxury brands as Louis Vuitton and Chanel. Plaza 66 is said to be one of the most successful commercial complexes in China. Hang Lung has opened similar facilities in the cities of Tianjin, Wuxi and Shenyang.

The company's chairman, Ronnie Chan Chi-chung, is the son of the founder. He earned an MBA at the University of Southern California and has many contacts in the U.S. After becoming chairman in 1991, he began actively investing in the mainland Chinese market.

Chan is known for his straight-talking manner and is often invited to speak at international conferences. He is also known for his philanthropy, making generous donations to Harvard University and other educational institutions through a foundation established by his family.

Business Summary

Hang Lung Properties Ltd. is an investment holding company, which engages in property investment for rental income, property development for sales and leasing, car park management, and property management through its subsidiaries. It operates through the Property Leasing and Property Sales segments. The Property Leasing segment includes property leasing operation in investment properties, such as retail, office, residential, serviced apartments and carparks in mainland China and Hong Kong. The Property Sales segment includes development and sale of the Group's trading properties in Hong Kong. The company was founded on December 19, 1949 and is headquartered in Hong Kong.

Financial Highlights

Dec 2019	HKD	USD
Revenue	8,857M	1,130.41M
Gross Profit	6,492M	828.56M
Operating income	5,853M	747.01M
Income before tax	14,800M	1,888.91M
Net income	6,172M	787.72M
EBITDA	5,949M	759.26M
Diluted EPS	1.37	0.17
Dividends Per Share	0.76	0.09
Total Assets	199,980M	25,665.44M
Total liabilities	52,168M	6,695.24M
Total equity	138,669M	17,796.78M
Operating cash flow	4,132M	527.36M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	10,067M	13,853M	11,748M	9,407M	8,857M
Gross Profit	7,667M	9,713M	8,459M	6,821M	6,492M
Operating income	5,971M	7,995M	6,677M	5,115M	5,853M
Income before tax	6,662M	7,917M	9,902M	9,921M	14,800M
Net income	5,092M	6,195M	8,124M	8,078M	6,172M
EBITDA	7,063M	9,159M	7,922M	6,229M	5,949M
Diluted EPS	1.13	1.38	1.81	1.80	1.37
Dividends Per Share	0.75	0.75	0.75	0.75	0.76
Total Assets	184,018M	174,907M	183,586M	186,453M	199,980M
Total liabilities	49,126M	42,762M	41,341M	42,859M	52,168M
Total equity	128,989M	126,565M	136,158M	137,561M	138,669M
Operating cash flow	5,148M	6,341M	7,968M	4,974M	4,132M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	1,298.53M	1,784.61M	1,507.54M	1,200.24M	1,130.41M
Gross Profit	988.96M	1,251.27M	1,085.48M	870.29M	828.56M
Operating income	770.19M	1,029.95M	856.81M	652.62M	747.01M
Income before tax	859.32M	1,019.90M	1,270.65M	1,265.83M	1,888.91M
Net income	656.81M	798.07M	1,042.49M	1,030.67M	787.72M
EBITDA	911.05M	1,179.90M	1,016.57M	794.76M	759.26M
Diluted EPS	0.14	0.17	0.23	0.22	0.17
Dividends Per Share	0.09	0.09	0.09	0.09	0.09
Total Assets	23,743.79M	22,559.47M	23,484.57M	23,814.62M	25,665.44M
Total liabilities	6,338.71M	5,515.43M	5,288.39M	5,474.14M	6,695.24M
Total equity	16,643.41M	16,324.33M	17,417.52M	17,569.91M	17,796.78M
Operating cash flow	664.03M	816.88M	1,022.48M	634.63M	527.36M

Valuation Measures

Dec 2019
PER	12.46
ROA	3.19%
ROE	4.46%
Operating margin	66.08%
Profit margin	69.68%

Key executives

Chief Executive Officer & Executive Director: Lo Wai-pak
Chief Financial Officer & Executive Director: Hau Cheong Ho
Director-Leasing & Management: Peck Lim Chhoa
Executive Director: Ka Ngok Chan
Head-Corporate Audit: Tin-For Tsang

Shareholders

Hang Lung Group Ltd. (58.0%)
First Eagle Investment Management LLC (4.3%)
APG Asset Management NV (2.2%)
The Vanguard Group, Inc. (1.5%)
Schroder Investment Management Ltd. (0.9%)
BlackRock Fund Advisors (0.8%)
Massachusetts Financial Services Co. (0.8%)
Walter Scott & Partners Ltd. (0.7%)
Invesco Advisers, Inc. (0.7%)
CHAN TAN CHING FEN (0.6%)

Contact Details

Website:http://www.hanglung.com
Address: 28th Floor, Standard Chartered Bank, 4 Des Voeux Road Central, Hong Kong, Hong Kong
Phone: +852.2879.0111

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Competitors

Last Updated on 9 Apr, 2020