Group 1 - As of June 24, Henderson Land Development Company Limited (00012.HK) closed at HKD 27.500, remaining flat compared to the previous trading day, with an intraday high of HKD 27.900, marking a nearly one-year high [1] - The net capital flow on that day showed an inflow of HKD 48.022 million, with a total inflow of HKD 121.49795 million and outflow of HKD 73.47595 million [1] Group 2 - Henderson Land Development Company Limited has been listed in Hong Kong since 1981 and has developed into a leading real estate development group with operations in Hong Kong and mainland China [2] - The company focuses on high-quality residential and commercial projects, with notable developments including The Henderson, International Finance Centre, and Beijing's Global Financial Center [2] - The core business of the group includes property development and investment, and it also holds stakes in two listed subsidiaries and two listed joint ventures, enhancing synergistic benefits [2] - Founded by Dr. Lee Shau Kee in 1976, the company has become one of the largest corporate groups in Hong Kong, employing around 10,000 full-time staff and holding the most agricultural land among developers in Hong Kong [2] - The company aims to provide high-quality products and services while adhering to environmental and sustainable development needs, enhancing value for shareholders, customers, and the community [2] - Henderson Land collaborates with internationally renowned architects and professionals to create modern architectural classics that align with the natural and community environment [2] - The company operates through vertical integration, ensuring high standards across all stages of development, from design to project management [2] - The group is committed to long-term business development in both Hong Kong and mainland China, focusing on innovative design and social contributions to build more iconic commercial and residential projects [2]

Group 1 - The article focuses on the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates, specifically concentrating on investment opportunities in the Hong Kong market [1]

Group 1 - Morgan Stanley upgraded the rating of Henderson Land Development to "Overweight" with a target price of HKD 31 [1] - Morgan Stanley downgraded the rating of Sino Land Company to "Equal-weight" with a target price of HKD 8.60 [1]

截至6月17日收盘，恒基地产（00012.HK）报26.800港元，较上个交易日下跌0.37%，当日盘中最高价 触及27.100港元，创近一年新高。 资金流向方面，当日主力流入16537.955万港元，流出8598.905万港元，净流入7939.05万港元。 恒基兆业地产有限公司自1981年于香港上市,至今已发展成为一家具领导地位之地产发展集团,业务遍及 香港和内地。集团致力建设高素质之新型住宅及商业项目,并屡获殊荣,其中具代表性之项目包括香港的 TheHenderson、国际金融中心综合发展项目,和北京的环球金融中心等城市地标,以及卓越非凡的豪华住 宅如迎海、THEHENLEY、高尔夫御苑和本木等。恒基兆业地产集团的核心业务为物业发展和物业投 资。此外亦持有两间上市附属公司,即恒基兆业发展有限公司和美丽华酒店企业有限公司,以及两间上市 联营公司,即香港中华煤气有限公司(该公司持有一间上市附属公司港华智慧能源有限公司之股份权益)及 香港小轮(集团)有限公司。彼此业务发挥协同效益,为集团带来相辅相成之优势。恒基地产乃由李兆基博 士大紫荆勋贤于1976年所创立,并担任主席兼董事总经理,直至彼于2019年5月28日 ...

Core Viewpoint - UBS reports that Hong Kong developers may have passed the worst refinancing risks, with total maturing loans decreasing by approximately 20% year-on-year to HKD 201 billion as of December last year [1] Group 1: Market Conditions - The significant reduction in Hong Kong interbank offered rates is expected to boost residential transactions [1] - High-leverage developers still hold 9,100 unsold units, indicating ongoing pricing issues [1] Group 2: Price Forecast - The firm estimates that Hong Kong residential prices will remain stable this year, with a potential recovery of 0% to 5% next year driven by interest rate cuts, rental growth recovery, and a decrease in new launches [1] Group 3: Stock Recommendations - The firm remains optimistic about Hong Kong developers, favoring Henderson Land and Sun Hung Kai Properties, raising target prices by 12% and 2% to HKD 29 and HKD 96, respectively [1] - The target price for Sino Land has been lowered from HKD 10.5 to HKD 9.8 [1]

Core Points - The China Securities Index for Hong Kong Stock Connect Real Estate has shown significant growth, with a 9.35% increase over the past month, 7.83% over the last three months, and a 3.95% rise year-to-date [2]. Group 1: Index Performance - The current value of the China Securities Index for Hong Kong Stock Connect Real Estate is reported at 1488.12 points [1]. - The index was established on November 14, 2014, with a base value of 3000.0 points [2]. Group 2: Index Composition - The index includes a maximum of 50 eligible Hong Kong-listed companies that reflect the real estate theme [2]. - The top ten weighted companies in the index are: - Sun Hung Kai Properties (14.39%) - China Resources Land (12.18%) - Cheung Kong Property (8.91%) - China Overseas Land & Investment (7.68%) - Sino Land (4.76%) - Wharf Real Estate Investment (4.51%) - Henderson Land Development (4.28%) - Longfor Group (3.65%) - China Resources Mixc Lifestyle (3.3%) - Wharf Holdings (3.09%) [2]. Group 3: Sector Allocation - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange [3]. - The sector breakdown of the index holdings is as follows: - Real Estate Development: 77.56% - Real Estate Management: 11.73% - Real Estate Services: 10.71% [3]. Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, specifically on the next trading day after the second Friday of June and December [3]. - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or when new companies meet the eligibility criteria for inclusion [3].

Financial Performance - For the year ended December 31, 2024, the group's revenue from property development decreased by 15% to HKD 20,548 million, while the pre-tax profit contribution increased by 31% to HKD 5,632 million[1]. - Total rental income from property leasing rose by 1% to HKD 8,942 million, with pre-tax net rental income also increasing by 1% to HKD 6,507 million[1]. - The group's basic earnings attributable to shareholders for the year were HKD 9,774 million, a slight increase of 1% from HKD 9,706 million in the previous year, resulting in basic earnings per share of HKD 2.02[1][27]. - The announced profit attributable to shareholders decreased by 32% to HKD 6,296 million, with announced earnings per share dropping to HKD 1.30 from HKD 1.91[1][27]. - The net asset value per share as of December 31, 2024, was HKD 66.55, down 1% from HKD 67.45 in the previous year[1]. - The group's total contracted sales in Hong Kong amounted to approximately HKD 112,850 million for the year ended December 31, 2024, with an unrecognized contracted sales amount of HKD 81,650 million as of the end of December 2024[1][32]. - The group recorded a fair value loss of HKD 20,222 million on completed investment properties and properties under development, while adjustments from sold investment properties amounted to HKD 14,556 million[1][27]. - The group has a strong financial position, with a focus on maximizing shareholder value through quality products and services[2]. Land and Development Projects - The company holds a substantial land reserve of 3.78 million square feet in New Territories, 2.38 million square feet in Kowloon, and 0.64 million square feet on Hong Kong Island, which is expected to generate significant revenue in the coming years[11]. - Future expansion plans include developing a series of commercial and residential projects across its extensive land reserves, aiming to capitalize on market opportunities[11]. - The total floor area available for sale by 2025 is 3.2 million square feet, consisting of 1.4 million square feet from unsold units and 1.8 million square feet from upcoming projects[34]. - The total area of urban redevelopment projects is 5.0 million square feet, including 1.7 million square feet from fully acquired properties and 0.6 million square feet from properties with over 20% ownership[34]. - The total area of New Territories projects is 4.1 million square feet, with significant contributions from the Hung Shui Kiu project at 3.4 million square feet[34]. - The company has 24 ongoing major development projects, with a total remaining residential area of 1,994,363 square feet as of December 31, 2024[39]. - The group plans to launch "Belgravia Place" Phase 2 and "South Point" in Ma Tau Kok in February and March 2025, respectively, with strong initial sales performance expected[1][32]. - The company has several projects in the pipeline, including the Kai Tak New Kowloon site with a total floor area of 1,205,028 sq ft and 2,060 units, of which 30% is owned[41]. Sustainability and Environmental Initiatives - The company is focused on sustainable development, achieving Platinum-level certifications in various green building standards, which reflects its commitment to environmental responsibility[13][18]. - The group has secured over HKD 50 billion in green loans and sustainable development financing since 2020, highlighting its commitment to environmental responsibility[114]. - The group has initiated a recycling program for old uniforms, transforming them into eco-friendly school uniforms for special needs students, demonstrating its commitment to sustainability[65]. - The group has launched an environmental Christmas tree project, using collected aluminum cans to create a festive display, further promoting its green initiatives[65]. - The group aims to continue its commitment to sustainable development through its "G.I.V.E." strategy, focusing on environmental protection, innovation, community care, and integrity[115]. Market Position and Strategy - Henderson Land Development has a diversified portfolio with interests in various sectors, including retail, hospitality, and energy, enhancing its market presence and revenue streams[20]. - The company is actively exploring mergers and acquisitions to enhance its market position and expand its operational capabilities[20]. - The group is focusing on leasing large commercial projects, achieving over 80% occupancy for the "Starry International Business Center" in Guangzhou and nearly 90% for the "Starry West Coast Center" in Shanghai[69]. - The group is exploring new market opportunities and potential acquisitions to further enhance its portfolio and market presence[197]. - The group is actively managing lease expirations, with several properties set to expire in 2047, ensuring long-term stability[198]. Awards and Recognition - The company has received multiple awards in 2024, including the Quality Building Award for innovative projects and the Hong Kong Institute of Architects Annual Awards, highlighting its commitment to quality and sustainability[13][18]. - The flagship project, The Henderson, completed in 2024, received multiple awards, including the Hong Kong Non-Residential Project Award at the Quality Building Awards 2024[116]. - The Henderson has received multiple international awards, including the Platinum pre-certification from LEED and the Asia Pacific Green Building Leadership Award from WorldGBC, highlighting the group's commitment to quality and sustainability[62]. Rental and Property Management - The average occupancy rate of the group's rental properties as of December 31, 2024, was 93%[55]. - The group's self-owned rental property portfolio expanded to approximately 10.4 million square feet, with 54% in retail space and 40% in office space[55]. - The total rental income attributable to the group increased by 2% to HKD 6.84 billion, while the attributable net rental income remained stable at HKD 4.91 billion[54]. - The office property portfolio remains resilient with a stable occupancy rate of around 90%, despite challenges in the leasing market due to economic uncertainty and significant new supply[58][60]. - The group manages over 79,000 residential and commercial units, 10 million square feet of retail and office space, and 20,000 parking spaces, maintaining a leading position in the property management industry[64]. Future Outlook - The group anticipates that the average annual completion of private residential units in the next five years will decrease by approximately 8% compared to the previous five years, providing support for the local property market[118]. - The group plans to launch 11 development projects in Hong Kong this year, with approximately 6,400 self-owned residential units or about 3 million square feet of self-owned residential floor area expected to be available for sale by 2025[120]. - The group is expanding its sustainable aviation fuel production capacity with a new plant in Johor, Malaysia, expected to be completed by 2025[122]. - The company is actively pursuing market expansion through various residential and mixed-use developments across key locations in Hong Kong[196].

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Financial Performance - The group's attributable profit for the year ended December 31, 2024, was HKD 9.77 billion, an increase of HKD 68 million or 1% compared to HKD 9.70 billion in the previous year[2]. - Basic earnings per share for the year were HKD 2.02, up from HKD 2.00 in 2023[2]. - The group's attributable profit after accounting for fair value losses and adjustments was HKD 6.29 billion, a decrease of HKD 2.96 billion or 32% from HKD 9.26 billion in the previous year[2]. - The proposed final dividend is HKD 1.30 per share, with a total dividend of HKD 1.80 per share for the year, unchanged from the previous year[3]. - Total revenue for the year ended December 31, 2024, was HKD 25,256 million, a decrease of 8.3% from HKD 27,570 million in 2023[112]. - Net profit for the year was HKD 7,283 million, down 25.5% from HKD 9,778 million in the previous year[114]. - Basic and diluted earnings per share decreased to HKD 1.30 from HKD 1.91, representing a decline of 32.0%[114]. - Total comprehensive income for the year was HKD 5,257 million, down 30.6% from HKD 7,575 million in 2023[116]. - The company's net asset value stood at HKD 340,577 million, slightly down from HKD 344,100 million[119]. - The group’s total revenue for the fiscal year 2024 was HKD 25,256 million, a decrease of 8.4% compared to HKD 27,570 million in fiscal year 2023[130]. Property Development - The group's attributable revenue from property development in Hong Kong decreased by 16% to approximately HKD 12.32 billion[5]. - The total contract sales amount for self-owned properties in Hong Kong was approximately HKD 11.28 billion for the year ended December 31, 2024[6]. - The group has acquired approximately 1.7 million square feet of self-owned floor area for urban redevelopment projects[8]. - The total floor area of properties under development or planned for development is approximately 12.3 million square feet[11]. - The company has 24 ongoing development projects with a total remaining saleable area of 1,994,363 square feet, of which 1,397,524 square feet is attributable to the group[13]. - The company plans to launch 10 new projects in 2025, with a total saleable area of 3,216,989 square feet, including the major project at Kai Tak with 1,205,028 square feet[18]. - The company has a 30% interest in the Kai Tak New Kowloon Inland Lot project, which is expected to yield substantial returns upon completion[18]. - The company is focusing on expanding its market presence through strategic developments in high-demand areas such as Kai Tak and Hung Hom[18]. - The total remaining saleable area for residential units is projected to be 1,799,372 square feet by 2025, indicating strong future sales potential[20]. - The company plans to launch 11 development projects in Hong Kong this year, with an estimated 6,400 self-owned residential units or approximately 3 million square feet of self-owned residential floor area available for sale by 2025[104]. Rental Income and Property Management - The total rental income attributable to the group in Hong Kong increased by 2% to HKD 6.84 billion for the year ending December 31, 2024[33]. - The average occupancy rate of the group's rental properties in Hong Kong was 93% as of December 31, 2024[34]. - The group has a total of 10.4 million square feet of completed rental properties, with 54% being retail space and 40% being office space[34]. - The group’s rental income from the International Finance Centre project decreased by 5% to HKD 1.62 billion[33]. - The group’s retail properties have maintained high occupancy rates despite challenges in the retail market, with some malls exceeding pre-pandemic visitor levels[36]. - The group’s office property portfolio remains resilient, with stable occupancy rates despite economic uncertainties and significant new supply[39]. - The group completed several development projects in Hong Kong, including The Henderson with a total floor area of 465,005 sq ft and a 100% ownership interest[43]. - The group manages over 79,000 residential and commercial units, totaling 10 million sq ft of shopping mall and office space, along with 20,000 parking spaces, establishing a leading position in the industry[44]. Market Expansion and Strategic Initiatives - The company is actively pursuing new strategies for market expansion and product development to enhance its competitive position in the real estate sector[18]. - The company is in the process of acquiring additional urban redevelopment projects, with an estimated self-owned floor area of about 177,000 square feet expected post-reconstruction if all rights are acquired[24]. - The company is developing a comprehensive property project at Central Waterfront No. 3, with a total floor area of 1.6 million square feet and over 300,000 square feet of green recreational space, expected to be completed in two phases by Q4 2026 and Q4 2032[28]. - The company plans to expand its market presence in mainland China, targeting a 10% increase in market share over the next fiscal year[158]. - The company is exploring potential acquisitions to diversify its product offerings and expand its customer base[158]. - The company is investing HKD 300 million in technology development to enhance operational efficiency[158]. Environmental and Sustainability Initiatives - The group has secured over HKD 50 billion in green loans and sustainable development loan quotas since 2020, reflecting its commitment to environmental sustainability[98]. - The group has achieved various environmental certifications for its projects, including BEAM Plus and LEED Platinum pre-certification[28]. - The company initiated Hong Kong's first green hydrogen project, expected to produce about 330 kilograms of hydrogen daily by 2025[85]. - EcoCeres, a strategic partner, produced approximately 180,000 tons of sustainable aviation fuel (SAF), capturing about 20% of the global SAF market[82]. - The green methanol production facility in Inner Mongolia has an annual capacity of 100,000 tons, expected to increase to 150,000 tons by the end of 2025[84]. Challenges and Market Conditions - The company recorded a total self-owned contract sales amount of approximately RMB 3.085 billion, a decrease of 48% compared to the previous year, with a corresponding sales area of 220,000 square feet, down 41%[55]. - The average annual completion of private residential units in the next five years is projected to decrease by about 8% compared to the previous five years, which is expected to support the local property market[103]. - The company reported a foreign exchange loss of HKD 546 million in 2024, contrasting with a gain of HKD 353 million in 2023[145]. - The company’s accounts payable aging analysis shows that overdue amounts increased from HKD 1,733 million in 2023 to HKD 2,719 million in 2024, indicating a potential liquidity concern[185]. Future Outlook - The company has set a performance guidance of HKD 13 billion in revenue for the next fiscal year, representing a growth target of 5%[158]. - The company aims for a revenue growth target of 8% for the upcoming fiscal year, driven by market expansion and new product offerings[163]. - Future guidance indicates a focus on enhancing operational efficiency and increasing revenue streams[164].

Financial Performance - For the six months ended June 30, 2024, the group's attributable underlying profit was HKD 5.441 billion, a decrease of HKD 632 million or 10% compared to HKD 6.073 billion in the same period last year[3]. - The basic earnings per share for the period was HKD 1.12, down from HKD 1.25 in the previous year[3]. - The attributable profit after accounting for fair value losses was HKD 3.174 billion, a decrease of HKD 2.783 billion or 47% from HKD 5.957 billion in the previous year[3]. - The company's profit for the six months ended June 30, 2024, was HKD 3,985 million, a decrease of 34.5% compared to HKD 6,122 million for the same period in 2023[111]. - The company's profit attributable to shareholders for the six months ended June 30, 2024, was HKD 3,174 million, a decrease of 46.3% compared to HKD 5,957 million for the same period in 2023[135]. - The group's financing costs for the six months ended June 30, 2024, were HKD 820 million, compared to HKD 905 million in the same period of 2023[110]. - The group reported a post-tax profit of HKD 159.2 million, compared to a post-tax loss of HKD 28.4 million in the same period last year[66]. Revenue and Sales - The group’s total rental income from property leasing was HKD 4.446 billion, an increase of 2% from HKD 4.367 billion in the previous year[2]. - The group’s basic announced earnings per share was HKD 0.66, down from HKD 1.23 in the previous year[3]. - The group's attributable revenue from property development in Hong Kong increased by 14% year-on-year to approximately HKD 4.917 billion[5]. - The total contract sales amount for self-owned properties in Hong Kong reached approximately HKD 8.953 billion, representing a 33% increase compared to the same period last year[5]. - Total revenue for the six months ended June 30, 2024, was HKD 11,762 million, an increase of 14.4% compared to HKD 10,278 million in the same period of 2023[126]. - The total revenue from property sales in Hong Kong for the six months ended June 30, 2024, was HKD 4,927 million, an increase of 15% compared to HKD 4,274 million in the same period of 2023[79]. - The total revenue from property leasing in Hong Kong for the six months ended June 30, 2024, was HKD 2,453 million, a slight increase of 2% from HKD 2,405 million in the same period of 2023[86]. Property Development and Investment - The group recorded a fair value loss of HKD 22.67 billion on completed and development investment properties, compared to a loss of HKD 1.16 billion in the previous year[3]. - The group has 12.6 million square feet of total floor area across various development projects, including 4.1 million square feet in New Territories[8]. - The group has acquired over 2.8 million square feet of self-owned floor area for urban redevelopment projects, with an additional 400,000 square feet planned for sale in the second half of 2024[6]. - The group has ongoing urban redevelopment projects with a total expected self-owned floor area of approximately 1.83 million square feet upon completion, contingent on acquiring all ownership rights[22]. - The group purchased land in Central for a total floor area of 1.6 million square feet, with completion expected in Q4 2026 and Q4 2032, including over 300,000 square feet of public green space[24]. - The group has a total of 246,021 square feet of land area purchased in various projects, with a total expected self-owned floor area of 1,929,227 square feet[20]. Dividends and Shareholder Returns - The group announced an interim dividend of HKD 0.50 per share, unchanged from the previous year[3]. - The company declared dividends to shareholders amounting to HKD 6,294 million, consistent with the previous period[116]. Debt and Financing - The net debt to equity ratio improved to 22.0%, down from 22.6% in the previous year[2]. - The group maintained a net debt of HKD 71.02 billion, with a debt-to-equity ratio of 22.0%[68]. - The interest coverage ratio for the six months ended June 30, 2024, was 2.13 times, down from 2.65 times for the same period in 2023, primarily due to an increase in net interest expenses[100]. - The group issued guaranteed notes with a total face value of HKD 300,000,000 under its medium-term note program during the six months ended June 30, 2024[97]. - The group’s total liabilities increased to HKD 31,466 million as of June 30, 2024, compared to HKD 28,362 million on December 31, 2023[181]. Operational Efficiency and Cost Management - The company plans to streamline its store network and integrate loyalty programs with its parent company to enhance operational efficiency and improve sales performance[50]. - The overall revenue for the hotel and serviced apartment business grew to HKD 296.9 million, with EBITDA increasing by 15.1% to HKD 75.4 million compared to the previous year[52]. - The company reported a tax provision of HKD 394 million for the current period, compared to HKD 247 million in the same period last year, reflecting an increase of 59.5%[133]. Market Expansion and Future Plans - The company plans to continue expanding its market presence in mainland China, focusing on property development and sales[142]. - The company is actively exploring new strategies for market expansion and potential acquisitions to enhance its portfolio[142]. - The company plans to launch several projects in the second half of 2024, including a residential project at 8 Hillside Avenue with a total floor area of 472,067 square feet and 172 residential units[14]. Sustainability and Environmental Initiatives - The group has secured over HKD 50 billion in green and sustainable financing since 2020, including the first social responsibility loan for a property developer in Hong Kong[68]. - The group has been recognized for its commitment to environmental sustainability and service quality, receiving accolades such as the "Hong Kong Excellent Service Brand" award[36].