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Finance

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 2021 HKDUSD
Revenue10,330M1,328.98M
Gross Profit7,380M949.46M
Operating income6,788M873.29M
Income before tax6,880M885.13M
Net income3,868M497.63M
EBITDA6,849M881.14M
Diluted EPS0.850.11
Dividends Per Share0.780.10
Total Assets224,235M28,761.72M
Total liabilities71,851M9,216.03M
Total equity141,719M18,177.72M
Operating cash flow1,437M184.87M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 11,748M 9,407M 8,857M 8,999M 10,330M
Gross Profit 8,459M 6,821M 6,492M 6,507M 7,380M
Operating income 6,677M 5,115M 5,853M 5,976M 6,788M
Income before tax 9,902M 9,921M 14,800M -775M 6,880M
Net income 8,124M 8,078M 6,172M -2,571M 3,868M
EBITDA 7,922M 6,229M 5,949M 6,024M 6,849M
Diluted EPS 1.81 1.80 1.37 -0.57 0.85
Dividends Per Share 0.75 0.75 0.76 0.76 0.78
Total Assets 183,586M 186,453M 199,980M 211,316M 224,235M
Total liabilities 41,341M 42,859M 52,168M 63,128M 71,851M
Total equity 136,158M 137,561M 138,669M 138,295M 141,719M
Operating cash flow 7,968M 4,974M 4,132M 2,261M 1,437M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 1,507.54M 1,200.24M 1,130.41M 1,160.26M 1,328.98M
Gross Profit 1,085.48M 870.29M 828.56M 838.96M 949.46M
Operating income 856.81M 652.62M 747.01M 770.50M 873.29M
Income before tax 1,270.65M 1,265.83M 1,888.91M -99.92M 885.13M
Net income 1,042.49M 1,030.67M 787.72M -331.48M 497.63M
EBITDA 1,016.57M 794.76M 759.26M 776.68M 881.14M
Diluted EPS 0.23 0.22 0.17 -0.07 0.11
Dividends Per Share 0.09 0.09 0.09 0.09 0.10
Total Assets 23,484.57M 23,814.62M 25,665.44M 27,253.04M 28,761.72M
Total liabilities 5,288.39M 5,474.14M 6,695.24M 8,141.50M 9,216.03M
Total equity 17,417.52M 17,569.91M 17,796.78M 17,835.65M 18,177.72M
Operating cash flow 1,022.48M 634.63M 527.36M 291.51M 184.87M

Valuation Measures

Dec 2021
PER18.65
ROA1.77%
ROE2.76%
Operating margin65.71%
Profit margin37.44%

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. (59.2%)
  • APG Asset Management NV (4.9%)
  • Schroder Investment Management Ltd. (1.4%)
  • Walter Scott & Partners Ltd. (1.2%)
  • The Vanguard Group, Inc. (1.2%)
  • BlackRock Fund Advisors (0.9%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.7%)
  • CHAN TAN CHING FEN (0.6%)
  • State Street Global Advisors Asia Ltd. (0.4%)
  • Massachusetts Financial Services Co. (0.3%)

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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    Last Updated on 15 Aug, 2022

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