Capital Estate Limited (0193) AI Stock Analysis

• Market Cap: HK$51.54M
• Dividend Yield: N/A
• Average Volume (3M): 221.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -4.96%
• EPS Growth: -332.17%
• Country: HK
• Employees: 95
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 233,202,560
• 10 Day Avg. Volume: 541,117
• 30 Day Avg. Volume: 221,443
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$0.18 ▼(-0.56% Downside)

The score is driven primarily by weak and unstable profitability and cash flows, which outweigh the company’s low-debt, resilient balance sheet. Technicals also indicate a broader downtrend with negative MACD, while valuation is constrained by loss-making earnings (negative P/E) and no dividend yield data.

Positive Factors

Balance Sheet Strength

A strong, low-leverage balance sheet reduces financial risk, providing stability and flexibility to navigate operational challenges.

Gross Profit Generation

Strong gross profit margins indicate effective cost management at the production level, which can support profitability if operational costs are controlled.

Shareholder Authorization

Share repurchase authorization can enhance shareholder value by reducing share count and signaling management's confidence in the company's prospects.

Negative Factors

Inconsistent Cash Flow

Volatile cash flow indicates potential liquidity issues and challenges in sustaining operations, impacting long-term financial planning and stability.

Revenue Decline

Declining revenue trends highlight challenges in market demand or competitive positioning, which can undermine growth prospects and profitability.

Profitability Challenges

Persistent negative EBIT reflects ongoing operational inefficiencies, limiting the company's ability to generate sustainable earnings and invest in growth.

Capital Estate Limited Business Overview & Revenue Model

Company Description

Capital Estate Limited, an investment holding company, engages in the property investment and development, hotel operation, financial investment, and related activities in Mainland China, Hong Kong, and Macau. The company holds interests in the Hotel Fortuna that comprises approximately 400 rooms located at Le Cong Zhen, Shun De District, Foshan. It is also involved in the trading of listed securities and other financial instruments; sale of properties; and provision of corporate management, and consumer finance services. The company was incorporated in 1972 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Capital Estate Limited makes money through various revenue streams, primarily driven by its real estate operations. The company generates income from property sales, leasing, and rental activities associated with its residential and commercial properties. Additionally, Capital Estate Limited earns revenue from its hospitality operations, including hotel management and related services. Strategic partnerships and joint ventures in property development projects also contribute to its earnings, along with potential capital appreciation of its investment properties. These revenue sources are complemented by the company's efforts in property value enhancement and operational cost management to maximize profitability.

Capital Estate Limited Financial Statement Overview

Summary

Capital Estate Limited is in a transitional phase, attempting to recover from historical revenue declines and operational losses. With strong equity and no debt, the company is financially stable, yet it must focus on improving cash flow generation and operational efficiency. The recent shift to positive net income is encouraging, but consistent performance is needed to enhance investor confidence.

Income Statement

Capital Estate Limited has experienced a notable decrease in revenue over the years, with a significant drop from 2019 to 2024. The gross profit margin has remained relatively high at around 75.8% for the latest year, indicating efficient cost management. However, negative EBIT and EBITDA margins highlight ongoing operational challenges. The company did manage to swing to a positive net income in 2024, indicating a potential turnaround in profitability.

Balance Sheet

The company maintains a strong equity position with a debt-free balance sheet, reflecting financial stability. The equity ratio is high, indicating a low level of liabilities relative to assets. However, the return on equity has been volatile, and a significant portion of assets is tied up in cash and cash equivalents, which might not be efficiently utilized.

Cash Flow

The company has faced challenges in generating positive operating cash flow, with 2024 showing significant negative figures. Free cash flow has improved from severe negatives in 2023, but remains a concern. The high cash reserves provide a cushion, yet the current cash flow situation requires urgent attention for sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	61.74M	70.01M	56.40M	36.88M	87.27M	132.06M
Gross Profit	47.28M	47.28M	42.75M	33.30M	52.27M	68.29M
EBITDA	320.00K	320.00K	2.02M	-22.94M	-11.69M	10.11M
Net Income	-13.89M	-13.89M	5.57M	-29.97M	-98.25M	-34.07M
Balance Sheet
Total Assets	832.53M	832.53M	807.15M	803.94M	980.88M	1.13B
Cash, Cash Equivalents and Short-Term Investments	303.84M	303.84M	274.88M	269.66M	388.77M	486.98M
Total Debt	8.70M	8.70M	0.00	0.00	307.00K	307.00K
Total Liabilities	69.10M	69.10M	40.71M	17.13M	139.46M	193.84M
Stockholders Equity	821.05M	821.05M	823.05M	819.96M	863.80M	970.50M
Cash Flow
Free Cash Flow	11.91M	1.70M	-34.75M	-142.22M	128.38M	-14.39M
Operating Cash Flow	10.56M	10.56M	-15.00M	-142.16M	128.38M	-14.37M
Investing Cash Flow	-2.90M	-8.86M	-1.00M	4.39M	99.00K	15.19M
Financing Cash Flow	-4.57M	8.96M	-49.00K	-340.00K	-9.48M	-116.01M

Capital Estate Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0193, the sentiment is Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.93 is Negative, neither overbought nor oversold. The STOCH value of 94.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0193.

Capital Estate Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0559	56 Neutral	HK$58.07M	1.73	7.28%	―	8.87%	―
0181	49 Neutral	HK$106.54M	21.02	1.89%	―	-32.86%	―
1355	47 Neutral	HK$146.75M	-2.01	―	―	-16.39%	-10.74%
0193	46 Neutral	HK$51.54M	-3.30	-1.69%	―	-4.96%	-332.17%
8237	42 Neutral	HK$46.24M	-0.25	―	―	-38.95%	-132.68%

Capital Estate Limited Corporate Events

Capital Estate Limited Announces 2026 Annual General Meeting

Capital Estate Limited has announced its upcoming annual general meeting scheduled for January 16, 2026, in Hong Kong. Key agenda items include the review of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize directors to repurchase up to 10% of issued shares and to allot additional shares, which could impact the company’s market operations and shareholder value.

Capital Estate Limited Reports Financial Loss for 2025

Capital Estate Limited reported its audited consolidated results for the year ending July 31, 2025, showing a loss of HK$16.571 million compared to a profit of HK$3.787 million in the previous year. The company’s revenue decreased, and it faced higher administrative and hotel operating expenses, impacting its overall financial performance and resulting in a negative total comprehensive income for the year.

Capital Estate Limited Schedules Board Meeting for Financial Results Approval

Capital Estate Limited has announced that its board of directors will hold a meeting on October 24, 2025, to approve the release of the company’s financial results for the year ending July 31, 2025. This announcement is significant as it will provide insights into the company’s financial health and performance, potentially impacting its market positioning and stakeholder interests.

Capital Estate Limited Issues Profit Warning for 2025

Capital Estate Limited has issued a profit warning, indicating an expected loss of at least HK$13.0 million for the year ending July 31, 2025, compared to a profit of HK$5.6 million the previous year. This shift from profit to loss is attributed to a significant decrease in the share of profit from an associate due to reduced revenue and property value, as well as increased depreciation costs following hotel renovations.