Henderson Land Development Co (HKSE:00012) Operating Income : HK$6,207 Mil (TTM As of Dec. 2023)

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What is Henderson Land Development Co Operating Income?

Henderson Land Development Co's Operating Income for the six months ended in Dec. 2023 was HK$3,238 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$6,207 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Henderson Land Development Co's Operating Income for the six months ended in Dec. 2023 was HK$3,238 Mil. Henderson Land Development Co's Revenue for the six months ended in Dec. 2023 was HK$17,292 Mil. Therefore, Henderson Land Development Co's Operating Margin % for the quarter that ended in Dec. 2023 was 18.73%.

Warning Sign:

Henderson Land Development Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -12.5%.

Henderson Land Development Co's 5-Year average Growth Rate for Operating Margin % was -12.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Henderson Land Development Co's annualized ROC % for the quarter that ended in Dec. 2023 was 1.13%. Henderson Land Development Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 12.10%.

Henderson Land Development Co Operating Income Historical Data

The historical data trend for Henderson Land Development Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Henderson Land Development Co Operating Income Chart

Henderson Land Development Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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9,534.00

12,529.00

8,940.00

6,753.00

6,207.00

Henderson Land Development Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															5,566.00	3,152.00	3,601.00	2,969.00	3,238.00

Henderson Land Development Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$6,207 Mil.

Henderson Land Development Co (HKSE:00012) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Henderson Land Development Co's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	6476 * ( 1 - 13.06% )	/	( (496037	+	498434)	/ 2 )
=	5630.2344	/	497235.5
=	1.13 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	533522	-	23629	-	( 13856	-	max(0, 58379	-	130532	+	13856	))
=	496037

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	542550	-	22011	-	( 22105	-	max(0, 60134	-	134142	+	22105	))
=	498434

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Henderson Land Development Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	10438	/	( ( (5853 + max(81807, 0))	+	(5719 + max(79184, 0)) )	/	2 )
=	10438	/	( ( 87660	+	84903 )	/	2 )
=	10438	/	86281.5
=	12.10 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5804	+	101077	+	6383)	-	(23629	+	0	+	7828)
=	81807

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6362	+	94164	+	7768)	-	(22011	+	0	+	7099)
=	79184

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Henderson Land Development Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	3238	/	17292
	=	18.73 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Henderson Land Development Co Operating Income Related Terms

Thank you for viewing the detailed overview of Henderson Land Development Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Henderson Land Development Co (HKSE:00012) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Henderson Land Development Co Ltd (HKSE:00012) » Definitions » Operating Income

Traded in Other Exchanges

HLDVF:USA HLDCY:USA HLD:Germany

Address

8 Finance Street, 72nd -76th Floor, Two International Finance Centre, Central, Hong Kong, HKG

Website

https://www.hld.com

Henderson Land Development is a leading property developer in Hong Kong with a focus on urban redevelopment and farmland conversion. The company was founded in 1976, listed in 1981. Founder Lee Shau Kee is the controlling shareholder, and a series of disposals in December 2017 reduced his stake to below 72.8%. The share disposals were the first since 1993, lessening the possibility of a privatization. Lee stepped down in May 2019, succeeded by his two sons as joint chairmen and managing directors. Henderson Land also controls four listed entities directly, including a 33.4% stake in Hong Kong Ferry, a 69% stake in Henderson Investment, a 41.5% stake in Hong Kong and China Gas, and a 50.1% stake in Miramar Hotel & Investment.

Executives

Hopkins (cayman) Limited	2201 Interest of corporation controlled by you
Riddick (cayman) Limited	2301 Trustee
Rimmer (cayman) Limited	2301 Trustee
Henderson Development Limited	2201 Interest of corporation controlled by you
Yamina Investment Limited	2201 Interest of corporation controlled by you
Believegood Limited	2101 Beneficial owner
South Base Limited	2201 Interest of corporation controlled by you
Richbond Investment Limited	2101 Beneficial owner
Cameron Enterprise Inc.	2101 Beneficial owner
Lee Ka Kit	2501 Other
Lee Ka Shing	2501 Other
Lee Shau Kee	2201 Interest of corporation controlled by you

Henderson Land Development Co (HKSE:00012) Headlines

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