Henderson Land Development Company Limited (0012.HK) stock analysis

In our weekly check, Henderson Land Development Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8.

About Henderson Land Development Company Limited

Henderson Land Development Company Limited is a Real Estate company (Real Estate - Diversified) based in Hong Kong, listed on HKSE as 0012.HK.

What our checks show for 0012.HK

Red flags

• Net debt is 29.4x a year of EBITDA (debt/equity 0.48). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 33.3 points over 5 years, to 22%: the company keeps less of each sale as profit.
• The gross margin fell by 20.5 points, to 31.5%: costs are rising faster than prices.
• The dividend takes 1209% of profit: little cushion if profit falls.
• The stock has fallen as much as 71% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6.3 years.
• Return on capital (ROCE) is only 1.5%.

Warning signs

• Revenue grew only 0.4% a year over the last 3 years.
• Earnings per share fell 15.8% a year over the last 3 years.
• Net profit fell 15.1% a year over the last 3 years.

Strengths

• Operating cash flow is 2.18x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 28.9% a year over the next years.
• Analysts expect the net margin to improve by 16.3 points from today's 22%.
• The company keeps 22% of its revenue as net profit.
• Free cash flow is 47.9% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $17.31 billion.

Similar companies

1878.T · 0016.HK · 0083.HK · 0688.HK · 1109.HK · 1113.HK

Questions

What grade does Henderson Land Development Company Limited (0012.HK) have?

In our weekly check, Henderson Land Development Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0012.HK stock?

This week's biggest flags for Henderson Land Development Company Limited: High debt, Weak interest cover, Margins falling. In total 11 of 25 checks show a warning or a red flag.

What does Henderson Land Development Company Limited do?

Henderson Land Development Company Limited is a Real Estate company (Real Estate - Diversified) based in Hong Kong, listed on HKSE as 0012.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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