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

• Market Cap: HK$577.34M
• Dividend Yield: 1.53%
• Average Volume (3M): 1.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -4.53%
• EPS Growth: -22.06%
• Country: HK
• Employees: 115
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): -1.19
• Shares Outstanding: 110,179,380
• 10 Day Avg. Volume: 1,200
• 30 Day Avg. Volume: 1,435
• PEG Ratio: -0.80
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.10
• 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$5.50
• Price Target Upside: 4.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$5.50 ▲(4.96%Upside)

The stock's financial performance poses significant risks due to ongoing losses and operational inefficiencies. However, strong technical indicators contribute positively to the score, counterbalanced by valuation concerns due to negative earnings. High dividend yield provides some appeal to investors.

Pokfulam Development Co. Ltd. Business Overview & Revenue Model

Company Description

Pokfulam Development Company Limited, an investment holding company, invests in, develops, and manages real estate properties in Hong Kong. It operates through three segments: Property investment and management, Trading of goods, and Securities investment. The company lets out and manages commercial, industrial, and residential properties. It also trades in visual and sound equipment, and home appliances; deals in listed securities; and provides trustee and nominee services. In addition, the company engages in trading of smart and control solutions for intelligent buildings and smart homes. Pokfulam Development Company Limited was incorporated in 1970 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Pokfulam Development Co. Ltd. generates revenue primarily through its property investment and development operations. The company earns rental income from leasing its residential, commercial, and industrial properties. Additionally, it generates revenue from property sales, leveraging its expertise in property development to create value and sell properties at a profit. The property management division also contributes to the company's income by providing management services to owned and third-party properties. Key factors contributing to its earnings include strategic property acquisitions, market demand for quality real estate in Hong Kong, and effective property management services.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	167.40M	180.02M	163.55M	154.14M	140.01M
Gross Profit	67.84M	66.36M	50.34M	46.64M	50.74M
EBITDA	-563.07M	-153.60M	36.61M	143.08M	-47.04M
Net Income	-597.10M	-181.78M	14.79M	137.12M	-59.60M
Balance Sheet
Total Assets	5.12B	5.75B	5.91B	5.70B	5.60B
Cash, Cash Equivalents and Short-Term Investments	138.32M	140.08M	64.02M	121.00M	145.56M
Total Debt	374.05M	384.44M	313.96M	65.00M	55.00M
Total Liabilities	493.72M	498.82M	428.54M	181.52M	173.99M
Stockholders Equity	4.62B	5.25B	5.48B	5.52B	5.43B
Cash Flow
Free Cash Flow	69.39M	68.60M	47.86M	39.48M	57.94M
Operating Cash Flow	71.89M	74.82M	48.28M	44.65M	59.83M
Investing Cash Flow	-20.32M	-51.65M	-298.70M	-66.80M	-64.32M
Financing Cash Flow	-74.62M	10.39M	201.88M	-33.28M	-59.51M

Pokfulam Development Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5.24 is above the 20-day moving average (MA) of 5.16, above the 50-day MA of 5.08, and above the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 84.93 is Negative, neither overbought nor oversold. The STOCH value of 51.77 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 *	66 Neutral	£962.26M	14.54	2.04%	234.64%	11.04%	38.13%
0225	62 Neutral	HK$577.34M	―	-10.79%	1.53%	-4.53%	-22.06%
0021	55 Neutral	HK$512.81M	30.00	2.08%	―	450.21%	―
1036	51 Neutral	HK$599.87M	―	-1.19%	3.90%	111.64%	-282.42%
0367	46 Neutral	HK$560.31M	―	-8.17%	―	-13.80%	27.58%
HKC		€61.89M	―	-12.13%	3.94%	―	―
0089	49 Neutral	HK$543.70M	―	-3.95%	5.29%	-1.13%	-79.58%

Pokfulam Development Co. Ltd. Corporate Events

Pokfulam Development Co. Ltd. Announces Changes to Nomination Committee

Pokfulam Development Co. Ltd. has announced changes to its Nomination Committee, effective from June 30, 2025. The appointments of Ms. Sung Kwan Yuk, Katherine, and Mr. Seto Gin Chung, John, as additional members, expand the committee to five directors, potentially enhancing its governance and strategic oversight.

Pokfulam Development Announces Board Composition and Committee Roles

Pokfulam Development Co. Ltd. has announced the composition of its board of directors and the roles they will serve within the company. The board consists of both executive and independent non-executive directors, and has established three committees: Audit, Remuneration, and Nomination. This structure aims to enhance corporate governance and ensure effective oversight of the company’s operations.

Pokfulam Development Co. Ltd. Updates Nomination Committee Terms

Pokfulam Development Co. Ltd. has revised the terms of reference for its Nomination Committee as of June 30, 2025. The committee, comprising primarily Independent Non-Executive Directors, aims to uphold gender diversity and align with the Corporate Governance Code. The committee’s responsibilities include reviewing the board’s structure and composition, identifying qualified board candidates, and assessing the independence of directors, which is crucial for maintaining effective governance and strategic alignment.

Pokfulam Development Releases Interim Financial Results

Pokfulam Development Co. Ltd. announced its unaudited interim financial results for the six months ending March 31, 2025. The report adheres to the Stock Exchange’s listing requirements and will be available to shareholders by May 28, 2025, reflecting the company’s commitment to transparency and regulatory compliance.

Pokfulam Development Announces Interim Dividend for 2025

Pokfulam Development Co. Ltd. has announced an interim cash dividend of HKD 0.04 per share for the six months ending March 31, 2025. The dividend will be paid on June 26, 2025, with an ex-dividend date of June 6, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by demonstrating financial stability and shareholder confidence.

Pokfulam Development Schedules Board Meeting for Interim Results

Pokfulam Development Co. Ltd. has announced a board meeting scheduled for May 22, 2025, to approve the unaudited interim financial results for the six months ending March 31, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact shareholder returns and market perception.