Pokfulam Development Co. Ltd. (0225) AI Stock Analysis

• Market Cap: HK$661.08M
• Dividend Yield: 6%
• Average Volume (3M): 6.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -4.53%
• EPS Growth: -22.06%
• Country: HK
• Employees: 115
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -1.19
• Shares Outstanding: 110,179,380
• 10 Day Avg. Volume: 5,400
• 30 Day Avg. Volume: 6,987
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 7.94
• 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: HK$6.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: HK$6.00 ▲(0.00% Upside)

The overall stock score of 58 reflects significant financial challenges, particularly in profitability, despite a strong equity base. Positive technical indicators suggest some upward momentum, but poor valuation due to negative earnings limits the stock's attractiveness.

Pokfulam Development Co. Ltd. Business Overview & Revenue Model

Company Description

Pokfulam Development Co. Ltd. (0225) is a prominent property investment and development company based in Hong Kong. The company primarily operates in the real estate sector, focusing on the acquisition, development, and management of residential and commercial properties. Its core offerings include high-end residential developments, commercial spaces, and investment properties that cater to a diverse clientele, contributing to the urban landscape of Hong Kong.

How the Company Makes Money

Pokfulam Development Co. Ltd. generates revenue through several key streams, primarily from the leasing and sale of its developed properties. The company invests in high-value real estate projects, which are subsequently leased or sold at a profit. Additionally, it might engage in property management services, earning fees for maintaining and managing its properties. The company's financial performance can also be bolstered through strategic partnerships with other developers and real estate firms, enabling it to expand its portfolio and enhance its revenue opportunities. Fluctuations in the Hong Kong real estate market, along with effective project management and marketing strategies, are significant factors influencing its earnings.

Pokfulam Development Co. Ltd. Financial Statement Overview

Summary

Pokfulam Development Co. Ltd. faces significant financial challenges, primarily due to negative net income and declining revenue. Operational inefficiencies and increasing debt levels pose potential risks, despite a strong equity base and stable cash flow.

Income Statement

The company has faced significant challenges with declining revenues, decreasing from 180 million to 167 million in the latest year. Net profit margins are negative due to substantial losses, with the latest net income at -597 million, reflecting ongoing profitability issues. The gross profit margin remained relatively stable, but the EBIT and EBITDA margins are deeply negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity base with stockholders' equity at 4.6 billion, indicating financial stability. However, the debt-to-equity ratio has increased slightly as total debt rose to 374 million. The equity ratio remains strong, but the decline in total assets and equity signals potential long-term risks.

Cash Flow

Cash flow analysis reveals a stable operating cash flow, but free cash flow shows limited growth. The operating cash flow to net income ratio is poor due to negative net income. Free cash flow generation remains consistent, yet the lack of significant growth in free cash flow indicates stagnating profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.29M	183.01M	193.55M	163.55M	169.48M	140.01M
Gross Profit	114.10M	67.84M	66.36M	50.34M	150.46M	50.74M
EBITDA	113.88M	-563.07M	-153.60M	78.08M	64.02M	-47.04M
Net Income	-597.11M	-597.10M	-181.78M	14.79M	137.12M	-59.60M
Balance Sheet
Total Assets	5.12B	5.12B	5.75B	5.91B	5.70B	5.60B
Cash, Cash Equivalents and Short-Term Investments	138.32M	138.32M	140.08M	64.02M	121.00M	145.56M
Total Debt	374.05M	374.05M	384.44M	313.96M	65.00M	55.00M
Total Liabilities	493.72M	493.72M	498.82M	428.54M	181.52M	173.99M
Stockholders Equity	4.62B	4.62B	5.25B	5.48B	5.52B	5.43B
Cash Flow
Free Cash Flow	69.39M	69.39M	68.60M	47.86M	39.48M	57.94M
Operating Cash Flow	71.89M	71.89M	74.82M	48.28M	44.65M	59.83M
Investing Cash Flow	-20.32M	-20.32M	-51.65M	-298.70M	-66.80M	-64.32M
Financing Cash Flow	-74.62M	-74.62M	10.39M	201.88M	-33.28M	-59.51M

Pokfulam Development Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.00
• 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:0225, the sentiment is Positive. The current price of 6 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 5.76, and above the 200-day MA of 5.16, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 65.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0225.

Pokfulam Development Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0225	58 Neutral	HK$661.08M	―	-10.79%	6.00%	-4.53%	-22.06%
0089	54 Neutral	HK$707.67M	―	-4.58%	3.27%	-4.31%	19.29%
1036	51 Neutral	HK$677.78M	―	-2.93%	3.26%	178.97%	-2829.91%
0655	51 Neutral	HK$649.44M	―	-6.19%	3.08%	1.62%	-63.95%
0021	48 Neutral	HK$389.57M	28.14	-4.27%	―	1303.01%	-45.00%
0367	39 Underperform	HK$560.31M	―	-8.17%	―	-43.81%	29.95%

Pokfulam Development Co. Ltd. Corporate Events

Pokfulam Development Engages in HK$3.56 Million Renovation Contract

Pokfulam Development Co. Ltd. has announced a connected transaction involving its subsidiary, Pokfulam Property, entering into a construction contract worth HK$3,560,000 for renovation works. The contractor, owned by relatives of an executive director, makes this a connected transaction under Hong Kong’s Listing Rules. The renovation aims to enhance the exterior and reinstate parts of the property, with the project expected to complete within 120 days. The transaction is subject to reporting requirements but exempt from shareholder approval, indicating a strategic move to improve property assets while adhering to regulatory standards.

The most recent analyst rating on (HK:0225) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Pokfulam Development Co. Ltd. stock, see the HK:0225 Stock Forecast page.