Wharf (Holdings) (0004) AI Stock Analysis

• Market Cap: HK$68.91B
• Dividend Yield: 1.76%
• Average Volume (3M): 909.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -36.07%
• EPS Growth: -441.20%
• Country: HK
• Employees: 6,400
• Sector: Real Estate
• Sector Strength: 61
• Industry: Real Estate - Development
• EPS (TTM): -0.19
• Shares Outstanding: 3,056,027,300
• 10 Day Avg. Volume: 903,023
• 30 Day Avg. Volume: 909,731
• PEG Ratio: 0.62
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 236.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$21.98
• Price Target Upside: -3.18% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• 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) 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) 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

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: Positive
• Last Price: 22.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1109	76 Outperform	$211.08B	7.61	9.66%	0.18%	9.97%	-19.80%
0688	71 Outperform	$156.07B	9.08	4.15%	0.15%	-10.21%	-40.22%
1113	71 Outperform	$128.44B	9.51	3.52%	5.27%	-3.04%	-20.01%
0083	69 Neutral	HK$81.71B	21.40	2.17%	6.49%	-30.38%	-43.73%
0004	61 Neutral	HK$68.91B	―	-2.30%	1.76%	-36.07%	-441.20%
Sector *	54 Neutral	$1.23B	3.75	0.67%	6.15%	-2.39%	-129.28%
2202	47 Neutral	HK$84.95B	―		13.43%	-32.30%	-620.87%

Wharf (Holdings) Corporate Events

The Wharf (Holdings) Limited Secures Shareholder Approval for Key Resolutions at AGM

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

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.