Why I Chose to Invest in Hysan Development Co Ltd (00014)
During the Evergrande crisis in China, numerous regional real estate companies experienced a significant decline in their stock prices. Amidst the chaos, I sought to identify a company whose share price had dropped disproportionately, indicating a potentially undervalued investment opportunity. This search led me to Hysan Development Co Ltd, a company with a rich history of owning prime real estate in Hong Kong and conservative management practices that span nearly a century.
Hysan Development’s largest shareholder, the Lee family, collectively held approximately 50.7% of the company’s issued share capital as of December 31, 2021. The primary factors that drew my attention to Hysan were its robust balance sheet and attractive dividend yield, both of which suggested financial stability and potential for long-term growth.
Additionally, I discovered that Hysan Development made strategic investments in Shanghai during the height of the crisis. I interpreted this move as a savvy, opportunistic play by the company to capitalize on undervalued assets that would likely bolster future rental income and market valuation.
In conclusion, my decision to invest in Hysan Development Co Ltd (00014) was based on the company’s strong financials, resilient management, and prudent investment strategy amid challenging market conditions.
Disclaimer: This is not financial advice. Always conduct thorough due diligence before making any investment decisions.
Hysan Development Co Ltd is a company principally engaged in the properties leasing. The Company operates its business through four segments. The Retail segment engages in the leasing of space and related facilities. The Office segment engages in the leasing of office space and related facilities. The Residential segment engages in the leasing of residential properties and related facilities. The Property Development segment engages in the development and sale of properties.
Company Website: https://www.hysan.com.hk/
Trading Activity – When I Bought These Shares
- October 23, 2022 – HKD 17.86
- Ex-dividend date: March 2, 2023 – HKD 1.17 (Second Interim Dividend for 2022.)
Trading Activity – When I Sold These Shares
- Not Applicable Yet