Henderson Land Development Co. Ltd.

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See more articles on 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 2020	HKD	USD
Revenue	25,423M	3,277.85M
Gross Profit	15,706M	2,025.01M
Operating income	12,662M	1,632.54M
Income before tax	9,554M	1,231.82M
Net income	10,192M	1,314.08M
EBITDA	13,090M	1,687.72M
Diluted EPS	2.10	0.27
Dividends Per Share	1.80	0.23
Total Assets	461,087M	59,465.55M
Total liabilities	128,895M	16,623.35M
Total equity	327,607M	42,250.88M
Operating cash flow	9,468M	1,220.73M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	26,167M	28,026M	22,308M	24,373M	25,423M
Gross Profit	11,465M	12,682M	12,321M	12,995M	15,706M
Operating income	6,946M	8,581M	8,899M	9,119M	12,662M
Income before tax	16,661M	33,382M	33,495M	19,086M	9,554M
Net income	21,916M	30,809M	31,157M	16,994M	10,192M
EBITDA	7,934M	9,512M	9,777M	10,097M	13,090M
Diluted EPS	4.53	5.78	6.43	3.51	2.10
Dividends Per Share	1.16	1.41	1.63	1.80	1.80
Total Assets	355,498M	410,998M	441,106M	455,245M	461,087M
Total liabilities	86,197M	113,055M	123,114M	129,852M	128,895M
Total equity	263,534M	292,574M	313,153M	320,851M	327,607M
Operating cash flow	9,048M	1,913M	3,721M	8,850M	9,468M

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	3,370.96M	3,596.38M	2,846.29M	3,110.70M	3,277.85M
Gross Profit	1,476.98M	1,627.39M	1,572.04M	1,658.54M	2,025.01M
Operating income	894.81M	1,101.14M	1,135.43M	1,163.85M	1,632.54M
Income before tax	2,146.35M	4,283.68M	4,273.65M	2,435.93M	1,231.82M
Net income	2,823.33M	3,953.51M	3,975.35M	2,168.93M	1,314.08M
EBITDA	1,022.09M	1,220.61M	1,247.45M	1,288.67M	1,687.72M
Diluted EPS	0.58	0.74	0.82	0.44	0.27
Dividends Per Share	0.15	0.18	0.20	0.22	0.23
Total Assets	45,852.07M	52,575.44M	56,340.05M	58,426.16M	59,465.55M
Total liabilities	11,117.67M	14,462.15M	15,724.67M	16,665.21M	16,623.35M
Total equity	33,990.57M	37,426.47M	39,997.31M	41,178.03M	42,250.88M
Operating cash flow	1,165.61M	245.48M	474.76M	1,129.51M	1,220.73M

Valuation Measures

Dec 2020
PER	14.36
ROA	2.22%
ROE	3.14%
Operating margin	49.80%
Profit margin	40.08%

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%)
BlackRock Fund Advisors (0.8%)
The Vanguard Group, Inc. (0.7%)
Norges Bank Investment Management (0.3%)
LEE SHAU KEE (0.3%)
BlackRock Advisors (UK) Ltd. (0.2%)
State Street Global Advisors Asia Ltd. (0.2%)
BlackRock Investment Management (UK) Ltd. (0.2%)
Geode Capital Management LLC (0.1%)
Dimensional Fund Advisors LP (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

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Competitors

Miramar Hotel & Investment Co. Ltd.
CK Infrastructure Holdings Limited

Last Updated on 20 Jan, 2022