Wharf (Holdings) (0004) AI Stock Analysis

• Market Cap: $63.81B
• Dividend Yield: 1.69%
• 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: 1.34
• Enterprise Value/Revenue: 7.93
• Enterprise Value/Gross Profit: 7.93
• Enterprise Value/Ebitda: 19.88
• 1Y Price Target: $23.96
• Price Target Upside: 0.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$26.00 ▲(8.79% Upside)

The overall stock score of 61 reflects a mixed outlook. The company's strong operational efficiency and solid equity base are positive, but significant profitability challenges and declining revenue weigh heavily. Technical indicators show bullish momentum, but valuation metrics highlight concerns with a negative P/E ratio and low dividend yield.

Positive Factors

Operational Efficiency

High EBIT margin reflects strong operational efficiency, suggesting effective cost management and a competitive advantage in core operations.

Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.

Balance Sheet Health

A low debt-to-equity ratio indicates strong balance sheet health, providing stability and reducing financial risk in volatile markets.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Profitability Challenges

Negative net income and profit margin indicate profitability issues, which could hinder reinvestment and shareholder returns over time.

Asset and Equity Decline

Decreasing assets and equity could limit growth capacity and financial resilience, affecting the company's ability to capitalize on opportunities.

Wharf (Holdings) Business Overview & Revenue Model

Company Description

Wharf (Holdings) Limited is a diversified investment holding company based in Hong Kong, with key operations across property investment, logistics, and telecommunications. The company is primarily known for its significant portfolio in the real estate sector, including commercial and residential properties, as well as its interests in the logistics and transportation sectors through its subsidiary, Modern Terminals. Wharf also has investments in telecommunications, operating through its subsidiary, Wharf T&T, which provides broadband and telecommunication services.

How the Company Makes Money

Wharf (Holdings) generates revenue primarily through its property investment activities, where it earns rental income from its extensive portfolio of properties. This includes commercial office spaces and retail properties in prime locations. Additionally, the company derives revenue from its logistics operations, which include port and container terminal services, contributing significantly to its earnings. The telecommunications segment provides another revenue stream through broadband and telecommunication services. Significant partnerships with local and international businesses in these sectors, along with strategic property developments and acquisitions, further enhance its revenue potential. Economic factors, such as demand for real estate and logistics services, also play a critical role in influencing the company's earnings.

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	1.30B	10.31B	10.99B
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: Positive
• Last Price: 23.90
• 50DMA: Positive
• 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 Positive. The current price of 23.9 is above the 20-day moving average (MA) of 23.03, above the 50-day MA of 22.26, and above the 200-day MA of 21.11, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.04 is Neutral, 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
1113	70 Outperform	$138.24B	12.17	2.92%	4.28%	9.72%	-26.47%
0688	68 Neutral	HK$145.02B	9.66	3.63%	4.15%	-9.54%	-38.16%
1109	68 Neutral	$217.07B	7.39	10.17%	4.70%	14.40%	-2.55%
0083	67 Neutral	$95.25B	23.02	2.41%	5.49%	-0.48%	-13.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0004	61 Neutral	$63.81B	-1,228.24	-0.04%	1.69%	-39.77%	97.82%
2202	47 Neutral	$73.56B	―	-23.88%	―	-28.36%	-206.13%

Wharf (Holdings) Corporate Events

Wharf (Holdings) to Forfeit Unclaimed 2019 Dividends

The Wharf (Holdings) Limited announced the forfeiture of unclaimed dividends from its 2019 first interim dividend, amounting to HK$0.25 per share, which will revert to the company if not claimed by October 13, 2025. This move underscores the company’s adherence to its Articles of Association and may impact shareholders who have yet to claim their dividends, urging them to act promptly to avoid forfeiture.

The most recent analyst rating on (HK:0004) stock is a Hold with a HK$24.50 price target. To see the full list of analyst forecasts on Wharf (Holdings) stock, see the HK:0004 Stock Forecast page.