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Finance

Henderson Land Development Co. Ltd.

Company Background

Henderson Land Development is a major property developer that is based and listed in Hong Kong. It builds residential properties, including luxury condominiums, as well as office and commercial complexes, such as the International Finance Centre on Hong Kong Island and the World Financial Centre in Beijing.

Its chairman, Lee Shau-kee, was a founding member of leading Hong Kong real estate developer Sun Hung Kai Properties. But in 1976, he branched out and created Henderson Land Development.

With the money generated from the company's listing on the Hong Kong stock exchange, Lee began acquiring old buildings and farmland and developed the land for sale. This strategy has enabled Henderson Land to grow rapidly over the years. The company is now the biggest landowner in Hong Kong's New Territories.

Group company Hong Kong and China Gas is the dominant supplier of city gas in Hong Kong. It also supplies city gas across the mainland, and boasts more than 20 million customers.

Henderson Land's subsidiaries also include Hong Kong Ferry Holdings and Miramar Hotel and Investment.

Lee is a high-profile stock investor and has been called the "Warren Buffett of Asia." His comments on stock markets attract keen attention from the Hong Kong public.

Business Summary

Henderson Land Development Co. Ltd. is an investment holding company, which engages in the property development and investment, construction, infrastructure, hotel operation, finance, department store operation, and project management. It operates through the following business segments: Property Development; Property Leasing; Department Store Operation; Others Businesses; and Utility and Energy. The Property Development segment involves in the development and sale of properties. The Property Leasing segment offers leasing of properties. The Department Store Operation segment comprises of department store operations and management. The Other Businesses segment is comprised of hotel operation and management, construction, provision of finance, investment holding, project management, property management, agency services, cleaning and security guard services, as well as the trading of building materials and disposal of leasehold land. The Utility and Energy segment consists of production, distribution and marketing of gas, water supply, and energy businesses. The company was founded by Shau Kee Lee in 1976 and is headquartered in Hong Kong.

Financial Highlights

Dec 2019 HKDUSD
Revenue24,373M3,110.70M
Gross Profit12,995M1,658.54M
Operating income9,119M1,163.85M
Income before tax13,265M1,693.00M
Net income16,994M2,168.93M
EBITDA10,097M1,288.67M
Diluted EPS3.510.44
Dividends Per Share1.800.22
Total Assets455,245M58,426.16M
Total liabilities129,852M16,665.21M
Total equity320,851M41,178.03M
Operating cash flow8,850M1,129.51M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 23,878M 26,167M 28,026M 22,308M 24,373M
Gross Profit 11,209M 11,465M 12,682M 12,321M 12,995M
Operating income 6,817M 6,946M 8,581M 8,899M 9,119M
Income before tax 15,038M 16,661M 33,382M 33,495M 13,265M
Net income 21,326M 21,916M 30,809M 31,157M 16,994M
EBITDA 7,798M 7,934M 9,512M 9,777M 10,097M
Diluted EPS 4.41 4.53 5.78 6.43 3.51
Dividends Per Share 0.99 1.16 1.41 1.63 1.80
Total Assets 336,269M 355,498M 410,998M 441,106M 455,245M
Total liabilities 80,000M 86,197M 113,055M 123,114M 129,852M
Total equity 251,247M 263,534M 292,574M 313,153M 320,851M
Operating cash flow 1,793M 9,048M 1,913M 3,721M 8,850M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 3,080.00M 3,370.96M 3,596.38M 2,846.29M 3,110.70M
Gross Profit 1,445.84M 1,476.98M 1,627.39M 1,572.04M 1,658.54M
Operating income 879.32M 894.81M 1,101.14M 1,135.43M 1,163.85M
Income before tax 1,939.74M 2,146.35M 4,283.68M 4,273.65M 1,693.00M
Net income 2,750.82M 2,823.33M 3,953.51M 3,975.35M 2,168.93M
EBITDA 1,005.85M 1,022.09M 1,220.61M 1,247.45M 1,288.67M
Diluted EPS 0.56 0.58 0.74 0.82 0.44
Dividends Per Share 0.12 0.15 0.18 0.20 0.22
Total Assets 43,388.70M 45,852.07M 52,575.44M 56,340.05M 58,426.16M
Total liabilities 10,322.38M 11,117.67M 14,462.15M 15,724.67M 16,665.21M
Total equity 32,418.33M 33,990.57M 37,426.47M 39,997.31M 41,178.03M
Operating cash flow 231.27M 1,165.61M 245.48M 474.76M 1,129.51M

Valuation Measures

Dec 2019
PER10.89
ROA3.79%
ROE5.36%
Operating margin37.41%
Profit margin69.72%

Key executives

  • Co-Chairman & Co-Managing Director: Ka Kit Lee
  • Co-Chairman & Co-Managing Director: Ka Shing Lee
  • Chief Financial Officer & Executive Director: Andrew Fung
  • GM-Information Technology Department: Tak Cheung Kum
  • Chief Treasurer & Executive Director: Woon King Fung Lee

Shareholders

  • LEE SHAU KEE FAMILY (72.4%)
  • The Vanguard Group, Inc. (1.0%)
  • BlackRock Fund Advisors (0.4%)
  • LEE SHAU KEE (0.3%)
  • Norges Bank Investment Management (0.3%)
  • State Street Global Advisors Asia Ltd. (0.3%)
  • Hang Seng Investment Management Ltd. (0.1%)
  • Third Avenue Management LLC (0.1%)
  • Dimensional Fund Advisors LP (0.1%)
  • Geode Capital Management LLC (0.1%)

Contact Details

  • Website:http://www.hld.com
  • Address: 72-76/F, Two International Finance Centre, Hong Kong, Hong Kong
  • Phone: +852.2908.8888

Related Companies

  • Team Glory Development Ltd.
  • Hang Oi Charitable Foundation Ltd.
  • Henderson Warmth Foundation Ltd.
  • Prosperwell Properties Ltd.
  • Hong Kong Concrete Precasting Product Co., Ltd.
  • Tactwin Development Ltd.
  • Profit Best Development Ltd.
  • Davenport Investment Ltd.
  • Henderson International Finance Ltd.
  • St. Helena Holdings Co. Ltd.
  • Broad Capital Ltd.
  • Future Home Ltd.
  • Ginca Construction Machinery Co. Ltd.
  • Dorway Investment Ltd.
  • Shanghai Hengzhi Properties Development Co. Ltd.
  • Henderson Real Estate Finance Ltd.
  • Henderson Land Finance (2011) Ltd.
  • Henderson (China) Finance Ltd.
  • Hang Yick Properties Management Ltd.
  • Carry Express Investment Ltd.
  • E Man Construction Co. Ltd.
  • Henderson Land Credit (2014) Ltd.
  • Henderson Land Credit (2009) Ltd.
  • Henderson Land MTN (S) Pte Ltd.
  • Henland Finance Ltd.
  • Henderson Real Estate Agency Ltd.
  • Henderson Land MTN Ltd.
  • Begonia Investment Ltd.
  • Viaduct Enterprises Ltd.
  • Resources Investment Ltd.

Competitors

  • CK Infrastructure Holdings Limited
Last Updated on 1 Jun, 2020

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