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Wharf (Holdings) (HK:0004)
:0004
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Wharf (Holdings) (0004) AI Stock Analysis

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HK:0004

Wharf (Holdings)

(OTC:0004)

Rating:61Neutral
Price Target:
HK$24.50
▲(7.93%Upside)
The stock score reflects a mix of strong operational metrics and financial stability, offset by negative profitability and valuation concerns. Technical indicators show bullish momentum but caution is advised due to overbought signals. The lack of earnings call and corporate events data limits a comprehensive assessment.
Positive Factors
Luxury Property Developments
The launch of ultra-luxury development at 1 Plantation Road aims to capture the improving sentiment for luxury properties, potentially boosting the company's financial performance.
Redevelopment Projects
The planned redevelopment is expected to unlock the value of Kowloon Godown and the Yau Tong Bay site, enhancing the company's asset value.
Negative Factors
China Market Challenges
Higher impairment provisions for China developments have led to a 22% decline in FY24's underlying profit, posing a challenge to the company's financial health.
Leasing Demand in China
Further deterioration in leasing demand for commercial properties in China could weigh on Wharf’s earnings and share price performance.
Rental Income Pressure
Rental income is under pressure, which may negatively impact the company's overall revenue and profitability.

Wharf (Holdings) (0004) vs. iShares MSCI Hong Kong ETF (EWH)

Wharf (Holdings) Business Overview & Revenue Model

Company DescriptionWharf (Holdings) Limited is a prominent investment holding company based in Hong Kong, operating primarily in the real estate sector. The company is involved in property development, property investment, and logistics. Wharf Holdings is renowned for its extensive portfolio of prime real estate assets, including commercial, residential, and retail properties. Additionally, the company has a presence in the logistics business, further diversifying its operations and revenue streams.
How the Company Makes MoneyWharf (Holdings) makes money primarily through its real estate investments and developments. The company generates significant revenue from leasing out its commercial, retail, and residential properties, which include some of Hong Kong's most prestigious shopping centers and office buildings. Property development also contributes to Wharf Holdings' earnings, with the sale of residential units and commercial spaces. Additionally, the company's logistics division provides services that further support its revenue generation, although real estate remains the core focus. Strategic partnerships and joint ventures in property development and investment amplify Wharf's ability to capitalize on market opportunities, enhancing its earnings potential.

Wharf (Holdings) Financial Statement Overview

Summary
Wharf (Holdings) demonstrates strong operational efficiency with a robust equity base and low leverage. However, challenges arise from negative net income and declining revenue, which impact overall profitability. Improvements in cash flow generation provide some offset, but attention to revenue trends is necessary.
Income Statement
58
Neutral
The company has shown a significant revenue decline from 2023 to 2024, with total revenue dropping from $18.95B to $12.115B. The gross profit margin in 2024 remains strong at 100%, but net income has turned negative, resulting in a net profit margin of -26.61%. EBIT margin is robust at 46.61%, indicating solid operational efficiency despite the revenue decline. However, the EBITDA margin is negative due to high depreciation or amortization expenses.
Balance Sheet
72
Positive
The balance sheet reflects stability with a high stockholders' equity of $136.832B in 2024. The debt-to-equity ratio is relatively low at 0.12, suggesting prudent financial leverage. The equity ratio stands at 72.00%, indicating a strong equity base relative to total assets. However, the decline in total assets and stockholders' equity over the years may pose potential risks.
Cash Flow
65
Positive
Operating cash flow increased from $2.379B in 2023 to $3.83B in 2024, indicating improved cash generation capabilities. The free cash flow growth rate is substantial at 99.78%, and the operating cash flow to net income ratio is strong due to a negative net income. However, the free cash flow to net income ratio is negative, reflecting challenges in translating profits into cash flows.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.12B18.95B18.06B22.38B21.00B
Gross Profit7.77B9.05B8.84B11.31B12.89B
EBITDA-5.29B3.75B2.55B5.95B8.96B
Net Income-3.22B945.00M-1.43B6.02B3.86B
Balance Sheet
Total Assets190.04B204.88B221.75B253.70B254.09B
Cash, Cash Equivalents and Short-Term Investments3.31B11.59B14.65B23.56B16.67B
Total Debt16.85B19.43B19.96B36.74B42.17B
Total Liabilities47.57B56.67B66.04B87.32B90.62B
Stockholders Equity136.83B142.99B151.59B162.02B158.85B
Cash Flow
Free Cash Flow3.60B1.80B5.83B2.08B9.89B
Operating Cash Flow3.83B2.38B6.18B2.55B10.27B
Investing Cash Flow-2.59B-3.55B4.31B11.31B-14.22B
Financing Cash Flow-3.72B-1.75B-17.55B-7.41B-5.51B

Wharf (Holdings) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.70
Price Trends
50DMA
22.55
Positive
100DMA
20.66
Positive
200DMA
20.89
Positive
Market Momentum
MACD
-0.02
Positive
RSI
44.41
Neutral
STOCH
17.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0004, the sentiment is Positive. The current price of 22.7 is below the 20-day moving average (MA) of 23.52, above the 50-day MA of 22.55, and above the 200-day MA of 20.89, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0004.

Wharf (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$211.08B7.619.66%0.18%9.97%-19.80%
71
Outperform
$156.07B9.084.15%0.15%-10.21%-40.22%
71
Outperform
$128.44B9.513.52%5.27%-3.04%-20.01%
69
Neutral
HK$81.71B21.402.17%6.49%-30.38%-43.73%
61
Neutral
HK$68.91B-2.30%1.76%-36.07%-441.20%
54
Neutral
$1.23B3.750.67%6.15%-2.39%-129.28%
47
Neutral
HK$84.95B
13.43%-32.30%-620.87%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0004
Wharf (Holdings)
22.70
-1.45
-6.02%
HK:0083
Sino Land Co
8.94
1.55
21.06%
HK:1109
China Resources Land
29.95
7.27
32.07%
HK:2202
China Vanke Co
5.50
1.31
31.26%
HK:0688
China Overseas Land & Investment
14.40
2.43
20.34%
HK:1113
CK Asset Holdings
36.55
8.49
30.26%

Wharf (Holdings) Corporate Events

The Wharf (Holdings) Limited Secures Shareholder Approval for Key Resolutions at AGM
May 13, 2025

The Wharf (Holdings) Limited successfully passed all resolutions at its Annual General Meeting held on May 13, 2025. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and mandates for share buy-backs and issuance. The approval of these resolutions reflects strong shareholder support and positions the company for continued strategic operations and governance, with no opposition or abstentions recorded.

The most recent analyst rating on (HK:0004) stock is a Sell with a HK$19.00 price target. To see the full list of analyst forecasts on Wharf (Holdings) stock, see the HK:0004 Stock Forecast page.

Wharf (Holdings) Updates Board of Directors and Committee Roles
May 13, 2025

The Wharf (Holdings) Limited has announced the composition of its Board of Directors, highlighting key roles and functions within the company. The board includes a mix of executive directors and independent non-executive directors, with Mr. Stephen T. H. Ng serving as Chairman and Managing Director. The announcement also details the membership of three board committees: Audit, Nomination, and Remuneration, indicating the leadership and participation of various directors in these committees. This update reflects the company’s governance structure and may impact its strategic decision-making and stakeholder engagement.

The most recent analyst rating on (HK:0004) stock is a Sell with a HK$19.00 price target. To see the full list of analyst forecasts on Wharf (Holdings) stock, see the HK:0004 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 13, 2025