Wharf (Holdings) (0004) AI Stock Analysis

• Market Cap: $64.36B
• Dividend Yield: 1.93%
• Average Volume (3M): 874.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -39.77%
• EPS Growth: 97.82%
• Country: HK
• Employees: 6,400
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.19
• Shares Outstanding: 3,056,027,300
• 10 Day Avg. Volume: 747,424
• 30 Day Avg. Volume: 874,290
• PEG Ratio: 0.05
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 5.51
• P/FCF Ratio: 18.55
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 7.93
• Enterprise Value/Gross Profit: 7.93
• Enterprise Value/Ebitda: 19.88
• 1Y Price Target: $23.30
• Price Target Upside: 10.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: HK$22.50 ▲(6.84% Upside)

The overall stock score of 52 reflects significant challenges in financial performance and valuation. While the company has strong operational efficiency and a solid equity base, the negative net income and declining revenue are concerning. Technical indicators suggest weak momentum, and the extremely negative P/E ratio highlights profitability issues. The modest dividend yield does not sufficiently compensate for these risks.

Positive Factors

Operational Efficiency

Strong operational efficiency, as indicated by a high EBIT margin, suggests effective cost management and the ability to maintain profitability despite revenue challenges.

Balance Sheet Strength

A low debt-to-equity ratio indicates a strong balance sheet with prudent financial leverage, providing stability and flexibility for future investments and growth.

Cash Flow Improvement

Improved cash generation capabilities enhance the company's ability to fund operations and investments, supporting long-term sustainability and growth potential.

Negative Factors

Revenue Decline

A significant decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Negative Net Income

Negative net income reflects profitability challenges, which may hinder the company's ability to reinvest in growth opportunities and maintain shareholder value.

Declining Asset Base

A declining asset base can limit the company's capacity to leverage its resources for growth, potentially impacting its competitive position and financial stability.

Wharf (Holdings) Business Overview & Revenue Model

Company Description

Wharf (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 Money

Wharf (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) shows mixed financial health. Strong operational efficiency and a solid equity base support stability, but the negative net income and declining revenue highlight challenges. The balance sheet is robust with low leverage, but cash flow improvements contrast with profitability issues.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.75B	12.12B	18.95B	18.06B	22.38B	21.00B
Gross Profit	10.75B	7.77B	9.05B	8.84B	11.31B	12.89B
EBITDA	4.29B	-5.29B	3.75B	2.55B	5.95B	8.96B
Net Income	-52.00M	-3.22B	945.00M	-1.71B	6.02B	3.86B
Balance Sheet
Total Assets	198.61B	190.04B	204.88B	221.75B	253.70B	254.09B
Cash, Cash Equivalents and Short-Term Investments	13.08B	9.72B	11.59B	14.65B	23.56B	16.67B
Total Debt	16.52B	16.85B	19.43B	19.96B	36.74B	42.17B
Total Liabilities	49.56B	47.57B	56.67B	66.04B	87.32B	90.62B
Stockholders Equity	143.30B	136.83B	142.99B	151.59B	162.02B	158.85B
Cash Flow
Free Cash Flow	5.29B	3.60B	1.80B	5.83B	2.08B	9.89B
Operating Cash Flow	5.29B	3.83B	2.38B	6.18B	2.55B	10.27B
Investing Cash Flow	-1.65B	-2.59B	-3.55B	4.31B	11.31B	-14.22B
Financing Cash Flow	-1.17B	-3.72B	-1.75B	-17.55B	-7.41B	-5.51B

Wharf (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0004, the sentiment is Negative. The current price of 21.06 is below the 20-day moving average (MA) of 22.12, below the 50-day MA of 22.39, and above the 200-day MA of 20.82, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 32.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0004.

Wharf (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0688	70 Outperform	$153.78B	10.14	3.63%	3.96%	-9.54%	-38.16%
1113	70 Outperform	$132.08B	11.47	2.92%	4.67%	9.72%	-26.47%
1109	67 Neutral	$207.65B	7.07	10.17%	4.86%	14.40%	-2.55%
0083	67 Neutral	$92.87B	22.45	2.41%	5.67%	-0.48%	-13.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0004	52 Neutral	$64.36B	―	-0.04%	1.93%	-39.77%	97.82%
2202	47 Neutral	$76.96B	―	-23.88%	13.43%	-25.23%	-582.15%

Wharf (Holdings) Corporate Events

Wharf (Holdings) Reports Resilient Interim Results Amid Global Challenges

Wharf (Holdings) Limited reported a 3% increase in Group Underlying Net Profit to HK$2,035 million for the first half of 2025, despite challenges in its investment properties and hotel sectors. The company maintained a healthy balance sheet with strong liquidity and low gearing, positioning itself well amid global economic uncertainties. In Hong Kong, the residential market showed resilience, bolstered by favorable interest rates and market conditions, while Mainland China’s property market remained cautious. The company continues to focus on strategic property launches and maintaining competitive advantages in its investment properties.

The most recent analyst rating on (HK:0004) stock is a Sell with a HK$20.00 price target. To see the full list of analyst forecasts on Wharf (Holdings) stock, see the HK:0004 Stock Forecast page.

The Wharf (Holdings) Announces Interim Dividend for 2025

The Wharf (Holdings) Limited has announced an interim dividend of HKD 0.2 per share for the half-year period ending 30 June 2025. This decision reflects the company’s ongoing commitment to providing shareholder returns and may impact its financial positioning by distributing profits to shareholders. The ex-dividend date is set for 29 August 2025, with payment scheduled for 16 September 2025, indicating a stable financial outlook for the company.

The most recent analyst rating on (HK:0004) stock is a Sell with a HK$20.00 price target. To see the full list of analyst forecasts on Wharf (Holdings) stock, see the HK:0004 Stock Forecast page.

Wharf (Holdings) Schedules Board Meeting to Discuss Interim Results and Dividend

Wharf (Holdings) Limited has announced an upcoming board meeting scheduled for August 12, 2025, where the board will discuss the interim results for the first half of the year and consider the payment of an interim dividend. This meeting could have significant implications for the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to transparency 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.