Melbourne Enterprises Limited (0158) AI Stock Analysis

• Market Cap: HK$1.51B
• Dividend Yield: 5.63%
• Average Volume (3M): 516.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 6.77%
• EPS Growth: -21.05%
• Country: HK
• Employees: 14
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): -5.66
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 750
• 30 Day Avg. Volume: 516
• PEG Ratio: 0.08
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.88
• 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

• 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.

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

Melbourne Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.40
• 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:0158, the sentiment is Positive. The current price of 60.4 is below the 20-day moving average (MA) of 60.84, above the 50-day MA of 59.12, and above the 200-day MA of 58.04, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 24.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0158.

Melbourne Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0113	76 Outperform	$2.65B	13.61	5.58%	2.92%	-19.93%	-43.35%
0700	74 Outperform	$4.56T	21.41	21.25%	0.89%	8.88%	54.27%
0016	74 Outperform	HK$268.33B	15.40	2.88%	4.10%	20.91%	-29.29%
0083	69 Neutral	$79.70B	20.96	2.17%	1.72%	-30.38%	-43.73%
0012	69 Neutral	$140.16B	22.26	1.94%	8.98%	-7.64%	-32.01%
Sector *	56 Neutral	HK$24.88B	3.87	-2.03%	6.54%	-0.32%	-67.68%
0158	55 Neutral	HK$1.51B	―	-4.45%	5.63%	6.77%	-21.05%

Melbourne Enterprises Limited Corporate Events

Melbourne Enterprises Limited: Shareholders Approve Key Resolutions at 2024 AGM

Melbourne Enterprises Limited conducted its 2024 Annual General Meeting where all proposed resolutions were approved by the shareholders. The resolutions included the adoption of the financial statements for the year ending 30 September 2024, the declaration of a final dividend, re-election of directors, authorization for directors’ remuneration, reappointment of PricewaterhouseCoopers as auditors, and approval of a mandate for issuing securities. The approval of these resolutions reflects shareholder confidence in the company’s management and strategic direction, potentially impacting the company’s operational and financial strategies positively.