Hang Lung Properties Ltd.

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 2022	HKD	USD
Revenue	10,353M	1,322.13M
Gross Profit	7,259M	927.01M
Operating income	6,609M	844.00M
Income before tax	5,826M	744.01M
Net income	3,836M	489.88M
EBITDA	6,687M	853.96M
Diluted EPS	0.85	0.10
Dividends Per Share	0.78	0.09
Total Assets	212,688M	27,250.39M
Total liabilities	69,542M	8,909.98M
Total equity	133,381M	17,089.28M
Operating cash flow	--	--
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	9,407M	8,857M	8,999M	10,330M	10,353M
Gross Profit	6,821M	6,492M	6,507M	7,380M	7,259M
Operating income	5,115M	5,853M	5,976M	6,788M	6,609M
Income before tax	9,921M	14,800M	-775M	6,880M	5,826M
Net income	8,078M	6,172M	-2,571M	3,868M	3,836M
EBITDA	6,229M	5,949M	6,024M	6,849M	6,687M
Diluted EPS	1.80	1.37	-0.57	0.85	0.85
Dividends Per Share	0.75	0.76	0.76	0.78	0.78
Total Assets	186,453M	199,980M	211,316M	224,235M	212,688M
Total liabilities	42,859M	52,168M	63,128M	71,851M	69,542M
Total equity	137,561M	138,669M	138,295M	141,719M	133,381M
Operating cash flow	4,974M	4,132M	2,261M	1,437M	--

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	1,200.24M	1,130.41M	1,160.26M	1,328.98M	1,322.13M
Gross Profit	870.29M	828.56M	838.96M	949.46M	927.01M
Operating income	652.62M	747.01M	770.50M	873.29M	844.00M
Income before tax	1,265.83M	1,888.91M	-99.92M	885.13M	744.01M
Net income	1,030.67M	787.72M	-331.48M	497.63M	489.88M
EBITDA	794.76M	759.26M	776.68M	881.14M	853.96M
Diluted EPS	0.22	0.17	-0.07	0.11	0.10
Dividends Per Share	0.09	0.09	0.09	0.10	0.09
Total Assets	23,814.62M	25,665.44M	27,253.04M	28,761.72M	27,250.39M
Total liabilities	5,474.14M	6,695.24M	8,141.50M	9,216.03M	8,909.98M
Total equity	17,569.91M	17,796.78M	17,835.65M	18,177.72M	17,089.28M
Operating cash flow	634.63M	527.36M	291.51M	184.87M	--

Valuation Measures

Dec 2022
PER	17.89
ROA	1.75%
ROE	2.78%
Operating margin	63.83%
Profit margin	37.05%

Key executives

Chief Executive Officer & Executive Director: Pak Lo Wai
Chief Financial Officer & Executive Director: Ka Kui Chiu
Deputy Director-Human Resources & Administration: Shun Ngar Poon
Director-Leasing & Management: Peck Lim Chhoa
Executive Director: Ka Ngok Chan

Shareholders

Hang Lung Group Ltd. (60.1%)
APG Asset Management NV (4.9%)
Schroder Investment Management Ltd. (1.5%)
The Vanguard Group, Inc. (1.2%)
Walter Scott & Partners Ltd. (1.0%)
BlackRock Fund Advisors (0.8%)
Schroder Investment Management (Hong Kong) Ltd. (0.6%)
CHAN TAN CHING FEN (0.6%)
State Street Global Advisors Asia Ltd. (0.4%)
Norges Bank Investment Management (0.4%)

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 24 Mar, 2023