Wharf (Holdings) (0004) AI Stock Analysis

• Market Cap: $65.46B
• Dividend Yield: 1.83%
• Average Volume (3M): 849.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -39.77%
• EPS Growth: 97.82%
• Country: HK
• Employees: 6,400
• Sector: Real Estate
• Sector Strength: 50
• Industry: Real Estate - Development
• EPS (TTM): -0.19
• Shares Outstanding: 3,056,027,300
• 10 Day Avg. Volume: 880,444
• 30 Day Avg. Volume: 849,240
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 7.04
• Enterprise Value/Gross Profit: 9.61
• Enterprise Value/Ebitda: 17.89
• 1Y Price Target: $21.69
• Price Target Upside: -0.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: HK$21.50 ▼(-1.47% Downside)

The overall stock score is primarily impacted by mixed financial performance, with strong operational efficiency but negative net income and declining revenue. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. These factors collectively result in a cautious outlook.

Positive Factors

Luxury Residential Developments

Wharf Holdings’ large portfolio of luxury residential developments on the Peak and in Kowloon Tong is anticipated to generate significant returns in the medium to long term.

Project Launches

New project launches are expected to unlock the company's net asset value, providing a positive outlook for the stock.

Negative Factors

Luxury Home Demand

Any unfavorable change in luxury home demand in Hong Kong could negatively impact the company's future profitability and valuation.

Rental Income

Rental income is currently under pressure, which could affect the company’s financial performance.

Wharf (Holdings) Business Overview & Revenue Model

Company Description

Founded in 1886 with Hong Kong as its base, The Wharf (Holdings) Limited (Stock code: 0004) is the 17th company incorporated in Hong Kong and a premier company with a long history. As one of the 30 constituent stocks in the original Hang Seng Index since more than 50 years ago, Wharf is among the top local blue chips that is most actively traded and widely held. Backed by a long standing mission of Building for Tomorrow and a proven track record in management and execution, the Group has produced consistent and productive performance over the years. Subsequent to the separate listing of Wharf Real Estate Investment Company Limited in November 2017 which focuses on its Hong Kong investment properties portfolio, The Wharf (Holdings) Limited's businesses are largely property-related, comprising Investment Properties, Hotels and Development Properties in Hong Kong and Mainland China. Other businesses include Logistics through Modern Terminals and Hong Kong Air Cargo Terminals. Wharf's Peak Portfolio redefines the concept of luxury living with a collection of the rare and most prestigious residences, epitomising a unique and exclusive lifestyle at the most sought-after addresses in town. Besides the highly-acclaimed Mount Nicholson, other properties under development include 1 Plantation Road, 11 Plantation Road and 77 Peak Road. Besides The Peak Portfolio, the development pipeline of Hong Kong Properties also includes the Kowloon Tong Residential Project and projects in Kowloon East. In the Mainland, Wharf spearheads its investment properties with the International Finance Square (IFS) series at the very heart of CBD or new CBD in high potential cities including Changsha, Chengdu, Chongqing, Suzhou and Wuxi. IFS developments are positioned as trendsetting landmarks with unrivalled locations, superior planning and design, retailer and shopper critical mass, as well as top-notch retail management. Changsha IFS, 2018's newest to the collection, and Chengdu IFS opened in 2014 are comparable to Harbour City in Hong Kong in scale and prominence. The boutique Chongqing IFS, featuring the largest cluster of first-tier brands in Chongqing, was opened in 2017. The Group continues to adopt a selective land acquisition policy with strategic focus on key Tier 1 or 2 cities in order to secure high quality land bank with returns. The development property landbank at the end of June 2019 totalled 3.6 million square metres. Wharf Hotels manages an expanding portfolio of 17 hotels in Asia, spearheaded by a prominent Niccolo brand in recent years. The Wharf Hotels owns four contemporary, urban, chic Niccolo hotels (including The Murray, Hong Kong and Niccolo Changsha) and manages 13 Marco Polo hotels in Hong Kong, Mainland China and the Philippines. Niccolo Suzhou is the newest addition under development and is scheduled to open in 2021. The Group also owns and operates Modern Terminals and Hong Kong Air Cargo Terminals, key components in Hong Kong's success as a hub for international trade and international transportation for decades. CME2 is the Group's long-term investment, representing a strategic initiative of reinvesting capital and profit released from the CME1 exit in Hong Kong in a progressive new economy infrastructure CME2 arena that covers much larger markets with greater growth potential. Building for Tomorrow also extends to Wharf's Business-in-Community (BIC) pursuit. With the flagship school improvement programme Project Wecan growing from strength to strength, the Group supports a series of BIC initiatives including Wu Zhi Qiao (Bridge to China) Charitable Foundation, Shanghai International Tower-running Grand Prix and Operation Panda with an aim of promoting BIC and to bring benefits to different segments of society.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.12B	18.95B	18.06B	22.38B	21.00B
Gross Profit	7.77B	9.05B	8.84B	11.31B	12.89B
EBITDA	-5.29B	3.75B	2.55B	5.95B	8.96B
Net Income	-3.22B	945.00M	-1.43B	6.02B	3.86B
Balance Sheet
Total Assets	190.04B	204.88B	221.75B	253.70B	254.09B
Cash, Cash Equivalents and Short-Term Investments	3.31B	11.59B	14.65B	23.56B	16.67B
Total Debt	16.85B	19.43B	19.96B	36.74B	42.17B
Total Liabilities	47.57B	56.67B	66.04B	87.32B	90.62B
Stockholders Equity	136.83B	142.99B	151.59B	162.02B	158.85B
Cash Flow
Free Cash Flow	3.60B	1.80B	5.83B	2.08B	9.89B
Operating Cash Flow	3.83B	2.38B	6.18B	2.55B	10.27B
Investing Cash Flow	-2.59B	-3.55B	4.31B	11.31B	-14.22B
Financing Cash Flow	-3.72B	-1.75B	-17.55B	-7.41B	-5.51B

Wharf (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 21.82 is below the 20-day moving average (MA) of 22.24, below the 50-day MA of 22.99, and above the 200-day MA of 20.89, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 34.79 is Neutral, 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
Sector *	64 Neutral	C$2.00B	5.83	-0.88%	5.17%	1.82%	-17.96%
0004	51 Neutral	$65.46B	―	-0.04%	1.83%	-39.77%	97.82%
CHVKF	―	$10.34B	5.74		13.28%	―	―
CAOVF	―	$19.84B	8.31	4.15%	2.32%	―	―
CHKGF	―	$16.74B	10.68	2.92%	5.86%	―	―
CRBJF	―	$29.34B	6.56	9.66%	5.70%	―	―
SNLAF	―	$11.01B	19.36	2.17%	13.76%	―	―

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.