Melbourne Enterprises Limited (0158) AI Stock Analysis

• Market Cap: HK$1.55B
• Dividend Yield: 5.48%
• Average Volume (3M): 450.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -3.49%
• EPS Growth: -309.61%
• Country: HK
• Employees: 14
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -19.96
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 300
• 30 Day Avg. Volume: 450
• PEG Ratio: -0.48
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 9.66
• P/FCF Ratio: 15.46
• 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: 55 Neutral
• Price Target: ―

Melbourne Enterprises Limited has a strong balance sheet with zero debt and positive cash flow, which are key strengths. However, the company faces significant challenges with persistent net losses and negative stock momentum. The technical indicators suggest bearish trends, and valuation is complicated by negative earnings. Despite these challenges, the high dividend yield provides some appeal to investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest expenses.

Positive Cash Flow

Positive free cash flow suggests effective cash management and the ability to fund operations and investments internally, supporting long-term sustainability.

High Dividend Yield

A high dividend yield can attract income-focused investors, providing a steady return even in the absence of earnings growth, enhancing shareholder value.

Negative Factors

Persistent Net Losses

Ongoing net losses indicate challenges in achieving profitability, which can hinder the company's ability to reinvest in growth and may affect investor confidence.

Lack of Revenue Growth

Stagnant revenue growth limits the company's ability to scale and compete effectively, potentially impacting its market position and long-term prospects.

Negative Earnings Impact

Negative earnings impact key financial metrics, reducing the company's attractiveness to investors and complicating efforts to assess financial performance.

Melbourne Enterprises Limited Business Overview & Revenue Model

Company Description

Melbourne Enterprises Limited (0158) is an investment holding company primarily engaged in property investment and development. The company operates in sectors such as real estate, with a particular focus on leasing and managing commercial properties. It is known for its strategic investments in high-value properties within key urban areas, offering office spaces and retail locations to a diverse range of tenants.

How the Company Makes Money

Melbourne Enterprises Limited makes money through rental income from its portfolio of commercial properties. The company's revenue model is centered around leasing office and retail spaces to a variety of tenants, ensuring a stable and recurring income stream. Additionally, by strategically acquiring and developing properties in prime locations, the company increases the value of its investments, which can lead to capital gains. Key partnerships with real estate management firms and a focus on maintaining high occupancy rates also contribute to its earnings.

Melbourne Enterprises Limited Financial Statement Overview

Summary

Melbourne Enterprises Limited has a mixed financial performance. The income statement shows persistent net losses, which is concerning for long-term profitability. However, the balance sheet is strong, with zero debt and a high equity ratio, indicating financial stability. The cash flow statement reflects positive free cash flow, suggesting effective cash management despite profitability issues.

Income Statement

Melbourne Enterprises Limited shows a concerning trend in its income statement. The company experiences a negative net income for the last several years, with a significant net loss recorded in the most recent year. Despite this, the gross profit margin remains relatively stable, and the EBIT and EBITDA margins are healthy, indicating operational efficiency. Revenue has been relatively stable, but there's no significant growth observed, which is a critical concern for future profitability.

Balance Sheet

The balance sheet of Melbourne Enterprises Limited is strong, with no debt present, resulting in a favorable debt-to-equity ratio. The company maintains a high equity ratio, indicating solid financial stability. However, the return on equity is not calculated due to negative net income, which is a downside. Overall, the absence of debt and strong equity position supports the financial health of the company.

Cash Flow

The cash flow statement of Melbourne Enterprises Limited shows positive free cash flow, indicating good cash generation from operations. The operating cash flow to net income ratio is not applicable due to negative net income, but the company maintains strong operating cash flows relative to its size. The free cash flow growth is positive, signaling effective cash management despite the profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.72M	161.67M	157.89M	158.71M	160.42M	203.70M
Gross Profit	163.44M	124.93M	116.93M	122.85M	111.40M	166.58M
EBITDA	55.44M	126.48M	108.41M	110.52M	99.09M	154.67M
Net Income	-316.83M	-156.36M	-129.16M	-127.39M	66.86M	-1.19B
Balance Sheet
Total Assets	7.01B	7.17B	7.43B	7.66B	7.89B	7.94B
Cash, Cash Equivalents and Short-Term Investments	287.32M	265.15M	254.11M	244.43M	250.11M	290.40M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	88.41M	71.86M	76.48M	66.59M	73.65M	87.88M
Stockholders Equity	6.92B	7.10B	7.36B	7.59B	7.82B	7.85B
Cash Flow
Free Cash Flow	130.08M	101.08M	102.11M	84.32M	74.71M	117.32M
Operating Cash Flow	131.32M	101.14M	102.24M	84.40M	74.71M	117.32M
Investing Cash Flow	3.57M	-107.00K	-2.56M	-79.00K	0.00	-6.00K
Financing Cash Flow	-90.00M	-90.00M	-90.00M	-90.00M	-115.00M	-127.50M

Melbourne Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.00
• 50DMA: Negative
• 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:0158, the sentiment is Neutral. The current price of 63 is above the 20-day moving average (MA) of 62.28, above the 50-day MA of 62.22, and above the 200-day MA of 60.29, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0158.

Melbourne Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0898	66 Neutral	HK$894.60M	2.59	4.18%	4.04%	-2.19%	78.43%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0158	55 Neutral	HK$1.55B	-2.42	-9.50%	5.48%	-3.49%	-309.61%
0225	52 Neutral	HK$654.47M	-3.03	-4.79%	6.05%	6.17%	63.88%
0105	49 Neutral	HK$1.88B	-8.60	-3.07%	10.10%	-2.39%	61.81%
0163	46 Neutral	HK$1.14B	-0.32	-21.92%	2.93%	76.62%	2.27%
0277	42 Neutral	HK$388.13M	24.39	0.63%	1.15%	-8.55%	―

Melbourne Enterprises Limited Corporate Events

Melbourne Enterprises Sets 2026 AGM, Seeks Fresh Share Issuance Mandate

Melbourne Enterprises Limited has convened its annual general meeting for 23 January 2026 in Central, Hong Kong, where shareholders will be asked to adopt the audited financial statements for the year ended 30 September 2025, approve a final dividend, re-elect retiring directors with authority for the board to fix their remuneration, and re-appoint PricewaterhouseCoopers as auditor. In addition, the board is seeking a renewed general mandate to allot, issue and deal with additional shares and related convertible instruments, subject to a cap of 20% of the company’s issued share capital, a move that would give management flexibility to raise capital or pursue corporate actions while setting defined dilution limits for existing shareholders.

Melbourne Enterprises Limited Declares Final Dividend for 2025

Melbourne Enterprises Limited announced a final cash dividend of HKD 1.6 per share for the financial year ending 30 September 2025. The dividend, pending approval on 23 January 2026, highlights the company’s robust financial performance and commitment to returning value to shareholders, with payment scheduled for 9 February 2026. This announcement underlines the company’s strong position in the real estate market and aims to maintain shareholder confidence.

Melbourne Enterprises Reports Widened Losses Amid Property Value Declines

Melbourne Enterprises Limited announced its annual results for the fiscal year ending September 30, 2025, reporting a significant decline in financial performance. The company’s losses widened substantially to HK$640.5 million compared to HK$156.4 million in the previous year, driven by a significant drop in the fair values of its investment properties. This decline signals challenges within the real estate market and potential risks for stakeholders, despite a modest increase in revenue and stable operational performance.

Melbourne Enterprises Appoints New Independent Director to Strengthen Governance

Melbourne Enterprises Limited has appointed Mr. Tan Leng Cheng, Aaron as an Independent Non-executive Director and member of the Audit, Nomination, and Remuneration Committees, effective December 1, 2025. Mr. Tan brings extensive experience in the banking industry, having held senior positions at major financial institutions and serving as an advisor to a global financial services firm. This appointment ensures Melbourne Enterprises’ compliance with Hong Kong Stock Exchange listing rules following a previous resignation that led to temporary non-compliance. The company welcomes Mr. Tan’s expertise to strengthen its governance and strategic oversight.

Melbourne Enterprises Announces Board Composition and Committee Roles

Melbourne Enterprises Limited, a company incorporated in Hong Kong, has announced the composition of its board of directors and the roles within its three key committees: Audit, Remuneration, and Nomination. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Chung Yin Shu, Frederick serving as Chairman. This announcement provides clarity on the governance structure, potentially impacting the company’s strategic direction and stakeholder engagement.