Chinese Estates (Holdings) (0127) AI Stock Analysis

• Market Cap: HK$2.37B
• Dividend Yield: 3.3%
• Average Volume (3M): 218.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -15.86%
• EPS Growth: -326.17%
• Country: HK
• Employees: 441
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Capital Markets
• EPS (TTM): -0.21
• Shares Outstanding: 1,907,619,000
• 10 Day Avg. Volume: 245,850
• 30 Day Avg. Volume: 218,437
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 6.80
• P/FCF Ratio: 7.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$1.50 ▲(22.95% Upside)

Chinese Estates (Holdings) faces significant financial challenges, with declining revenues and profitability, and volatile cash flows. The technical indicators show a lack of strong momentum, and the negative P/E ratio highlights valuation concerns. These factors suggest caution for investors.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Diversified Revenue Streams

Diversification across residential, commercial, and financial investments reduces dependency on a single income source, enhancing resilience against market volatility.

Strategic Partnerships

Collaborations with other entities can provide access to additional funding and expertise, supporting long-term growth and competitive positioning in the market.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in market demand or competitive pressures, which could affect the company's ability to sustain operations and growth.

Negative Cash Flow

Negative cash flow suggests liquidity issues and operational inefficiencies, potentially hindering the company's ability to fund operations and invest in future growth.

Profitability Issues

Sustained unprofitability can erode shareholder value and limit the company's ability to reinvest in its business, posing a risk to long-term viability.

Chinese Estates (Holdings) Business Overview & Revenue Model

Company Description

Chinese Estates Group (the Group) is one of the leading property developers in Hong Kong. Chinese Estates Holdings Limited is the holding company of the Group and it is publicly listed on The Stock Exchange of Hong Kong Limited with stock code: 127. Chinese Estates' core businesses comprise of property investment for rental and property development for sale. The Group focuses primarily in Hong Kong, and diversifies its property interests to mainland China and the United Kingdom. The Group's investment properties include retail and office assets. Most of the investment properties of Chinese Estates are highly accessible and strategically located in prime commercial areas in Hong Kong such as Causeway Bay and Wanchai. In mainland China, Chinese Estates owns a five-star international hotel in Beijing. In the United Kingdom, Chinese Estates owns four investment properties in London. Over the past twenty years, Chinese Estates has built a reputation for conceptualising and implementing redevelopment, renovation works and repackaging programmes to enhance the value and revenue of its investment properties. Chinese Estates specializes in developing mid to high-end commercial and residential property projects. A number of quality and cosmopolitan residential properties are developed for sale.

How the Company Makes Money

Chinese Estates generates revenue primarily through the development and sale of residential and commercial properties. The company profits from the appreciation of its real estate assets and the rental income derived from its property investments. Key revenue streams include the sales of completed developments, leasing of commercial spaces, and property management services. Additionally, the company may engage in financial investments, where returns from these activities can also contribute to its earnings. Strategic partnerships with other real estate developers and financial institutions further bolster its capabilities and revenue potential, allowing for collaborative projects and access to additional funding sources.

Chinese Estates (Holdings) Financial Statement Overview

Summary

The financial performance of Chinese Estates (Holdings) is concerning, with declining revenues and profitability, negative net income, and significant volatility in cash flows. The balance sheet shows a strong equity position but decreasing total assets, indicating potential stability concerns.

Income Statement

The income statement reflects declining revenue and profitability. Revenue decreased significantly from 2020, with a drastic drop in 2024. The net income has been negative for recent years, indicating profitability issues. The gross profit margin has decreased over time, and the net profit margin turned negative, showing declining efficiency and profitability.

Balance Sheet

The balance sheet shows a strong equity position relative to debt, with a declining debt-to-equity ratio. However, total assets and stockholders' equity have dropped over the years, reflecting potential stability concerns. The equity ratio remains relatively high, indicating a solid equity base, but decreasing total assets could impact long-term stability.

Cash Flow

Cash flow analysis highlights significant volatility. Operating cash flow and free cash flow have experienced substantial fluctuations, with negative figures in recent periods. This could indicate liquidity challenges and operational inefficiencies, significantly impacting the company's ability to generate cash internally.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.49M	336.81M	474.40M	1.45B	1.16B	3.29B
Gross Profit	84.49M	280.23M	425.15M	1.39B	879.21M	3.21B
EBITDA	92.09M	99.19M	430.75M	1.15B	662.53M	2.97B
Net Income	-2.10B	-2.11B	76.83M	1.15B	-3.52B	622.23M
Balance Sheet
Total Assets	14.13B	15.70B	18.55B	19.43B	21.60B	37.47B
Cash, Cash Equivalents and Short-Term Investments	1.62B	2.11B	592.23M	2.78B	3.72B	3.75B
Total Debt	909.40M	2.97B	3.93B	4.98B	5.52B	7.39B
Total Liabilities	2.04B	3.61B	4.31B	5.43B	7.20B	8.69B
Stockholders Equity	12.07B	12.07B	14.21B	13.98B	14.38B	28.76B
Cash Flow
Free Cash Flow	265.94M	322.11M	227.85M	-116.84M	656.98M	2.08B
Operating Cash Flow	-24.72M	336.46M	249.66M	-37.52M	685.81M	2.22B
Investing Cash Flow	1.83B	1.81B	-274.21M	179.92M	1.42B	-78.55M
Financing Cash Flow	-2.40B	-952.42M	-1.42B	-465.89M	-1.98B	-6.57B

Chinese Estates (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0127, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.27, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0127.

Chinese Estates (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0064	70 Outperform	HK$1.86B	29.91	0.95%	3.28%	9.64%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0335	63 Neutral	HK$1.85B	27.20	2.39%	2.14%	-20.02%	10.62%
0227	52 Neutral	HK$580.53M	37.68	0.63%	―	3.07%	-72.40%
0127	46 Neutral	HK$2.37B	-1.11	-16.37%	3.30%	-15.86%	-326.17%
0139	42 Neutral	HK$235.88M	-1.42	-16.07%	―	110.52%	2.14%
0993	39 Underperform	HK$1.30B	-1.14	―	―	-78.40%	-196.19%