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Shui On Land (HK:0272)
:0272
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Shui On Land (0272) AI Stock Analysis

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HK

Shui On Land

(OTC:0272)

Rating:54Neutral
Price Target:
HK$1.00
▲(28.21%Upside)
The overall stock score of 54 reflects a mixed outlook for Shui On Land. The company's strong gross profit margins and operational efficiency are positive, but significant challenges include declining revenue and zero free cash flow, along with high leverage. Technical indicators show positive price momentum, but caution is advised due to overbought signals. Additionally, the high P/E ratio suggests potential overvaluation, balanced slightly by a decent dividend yield.

Shui On Land (0272) vs. iShares MSCI Hong Kong ETF (EWH)

Shui On Land Business Overview & Revenue Model

Company DescriptionShui On Land Limited, an investment holding company, develops and sells properties in the Chinese Mainland. It operates through four segments: Property Development, Property investment, Property Management, and Construction. The company develops and sells residential and commercial properties; and leases offices and commercial/mall properties. It also provides property management services; construction, interior fitting-out, renovation, and maintenance services for building premises; and debt financing and management services. The company was incorporated in 2004 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyShui On Land makes money primarily through the development and sale of real estate properties. Its revenue model is centered around several key streams: the sale of residential units, leasing of office and retail spaces, and property management services. The company also generates income through partnerships and joint ventures with local governments and other developers, which enable it to undertake large-scale urban redevelopment projects. Additionally, Shui On Land benefits from recurring income from its investment properties, which include shopping malls and office buildings in strategic locations. The company's focus on high-quality, sustainable developments enhances its brand value and attracts premium tenants and buyers, contributing to its overall earnings.

Shui On Land Financial Statement Overview

Summary
Shui On Land faces challenges in revenue growth and cash generation, with a declining revenue trend and zero free cash flow in the latest year. While the company maintains strong gross profits and operational margins, the high leverage and low net profit margin are potential risks. Effective management of liabilities and cash flows will be crucial for financial stability and growth in the future.
Income Statement
60
Neutral
The company has experienced a significant decline in revenue over the past few years, with a notable decrease of 15.7% from 2023 to 2024. Gross profit margin remains strong at 63.9% in 2024, indicating efficient cost management. However, the net profit margin has deteriorated to 2.2%, reflecting lower profitability. EBIT and EBITDA margins are relatively healthy at 51.0% and 52.4%, respectively, suggesting stable operational performance despite revenue challenges.
Balance Sheet
55
Neutral
The balance sheet shows a high debt-to-equity ratio of 0.93 in 2024, indicating significant leverage, which could pose a risk if not managed carefully. Stockholders' equity has decreased slightly, yet the equity ratio stands at 41.8%, reflecting a reasonable proportion of equity financing. The return on equity is low at 0.5%, suggesting limited returns on shareholder investment.
Cash Flow
40
Negative
The cash flow situation is concerning, with operating cash flow and free cash flow at zero in 2024, demonstrating potential liquidity issues. The lack of free cash flow growth and the absence of operating cash flow to net income ratio highlight challenges in generating cash from operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.17B9.75B15.56B17.55B4.60B
Gross Profit5.23B5.04B6.65B7.17B2.12B
EBITDA4.28B4.00B5.57B6.03B1.27B
Net Income180.00M810.00M1.02B1.87B-740.00M
Balance Sheet
Total Assets91.94B101.00B104.88B113.90B115.47B
Cash, Cash Equivalents and Short-Term Investments4.95B5.75B11.20B17.28B14.48B
Total Debt35.89B38.41B39.91B34.94B39.23B
Total Liabilities49.27B56.85B60.48B64.72B68.74B
Stockholders Equity38.48B38.86B39.15B43.98B42.64B
Cash Flow
Free Cash Flow604.00M1.11B4.05B10.16B9.20B
Operating Cash Flow604.00M1.11B4.05B10.16B9.59B
Investing Cash Flow2.57B-1.35B-2.97B-1.42B-1.75B
Financing Cash Flow-3.91B-5.11B-7.31B-5.89B-3.87B

Shui On Land Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.78
Price Trends
50DMA
0.68
Positive
100DMA
0.66
Positive
200DMA
0.65
Positive
Market Momentum
MACD
0.03
Negative
RSI
65.95
Neutral
STOCH
75.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0272, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.68, and above the 200-day MA of 0.65, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 75.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0272.

Shui On Land Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$1.97B17.692.45%4.96%-1.17%4.31%
54
Neutral
HK$6.25B31.970.47%4.62%-18.65%-78.51%
$785.58M-26.83%3.35%
$871.54M17.630.81%4.61%
$803.94M-29.26%
$778.85M25.480.53%1.57%
64
Neutral
HK$7.05B6.813.05%7.07%-20.27%-59.83%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0272
Shui On Land
0.77
0.12
18.10%
BEIJF
Beijing North Star Company
0.08
-0.04
-33.33%
KWHAF
K Wah International Holdings
0.24
0.02
9.09%
LPHHF
Logan Property Holdings Co
0.11
0.00
0.00%
PHKIF
Poly Property Group Co
0.17
-0.03
-15.00%
HK:0081
China Overseas Grand Oceans Group Limited
1.92
0.14
7.87%

Shui On Land Corporate Events

Shui On Land Reports Strong Property Sales in First Half of 2025
Jul 8, 2025

Shui On Land Limited reported contracted property sales of RMB3,473 million for the first half of 2025, with residential sales contributing RMB3,290 million and commercial sales RMB183 million. The company also recorded RMB699 million in subscribed sales, expected to convert to contracted sales in the coming months, indicating a stable demand in their market segment.

Shui On Land Appoints Clement Kwok as Independent Non-Executive Director
Jun 30, 2025

Shui On Land Limited has announced the appointment of Mr. Clement King Man Kwok as an Independent Non-Executive Director and a member of both the Audit and Risk Committee and the Strategy Committee, effective from July 1, 2025. Mr. Kwok brings extensive experience in accounting, investment banking, and corporate management, which is expected to enhance the company’s strategic oversight and risk management capabilities. His appointment is anticipated to strengthen Shui On Land’s position within the industry, providing valuable insights and governance expertise that could positively impact stakeholders.

Shui On Land Updates Board and Committee Roles
Jun 30, 2025

Shui On Land Limited has announced the composition of its board of directors and the roles within its various committees. This update includes the appointment of Mr. Clement K. M. Kwok as an independent non-executive director, effective from July 1, 2025. The announcement reflects the company’s ongoing efforts to strengthen its governance structure, potentially impacting its strategic direction and stakeholder confidence.

Shui On Land Announces Major Capital Contribution and Equity Transfer
Jun 25, 2025

Shui On Land Limited has announced a major transaction involving a capital contribution increase to its fund and the equity transfer of project companies. The transaction will see the fund’s capital commitment rise to RMB3.54 billion, with 100% equity interests in Fo Shan Shui On and Fo Shan An Ying being transferred to the fund. This move will result in the fund being considered a subsidiary of Shui On Land, consolidating its financial results into the company’s statements. The transaction is classified as a major transaction under the Listing Rules, with shareholder approval obtained through written consent, eliminating the need for an extraordinary general meeting.

Shui On Land Forms Joint Venture for Shanghai Project Acquisition
Jun 19, 2025

Shui On Land Limited has announced the formation of a joint venture with Shanghai Xinfuli to participate in a proposed acquisition. The joint venture, structured with a 30% and 70% ownership between Shanghai Ruixinli and Shanghai Xinfuli respectively, aims to engage in the development, sales, and operation of a Shanghai project. This transaction, classified as discloseable under Hong Kong’s Listing Rules, highlights Shui On Land’s strategic expansion in the Shanghai real estate market and its commitment to enhancing its operational capabilities.

Shui On Land Limited Announces Board Composition and Roles
May 16, 2025

Shui On Land Limited has announced the composition of its board of directors and the roles of its members. This update includes the listing of executive directors, independent non-executive directors, and the members of various board committees. The announcement is significant as it outlines the governance structure and leadership roles within the company, which could impact its strategic direction and operational effectiveness.

Shui On Land Announces AGM Results and Board Changes
May 16, 2025

Shui On Land Limited announced the results of its Annual General Meeting held on May 16, 2025, where all proposed resolutions were passed by shareholders. The company also reported the retirement of Professor Gary C. Biddle as an Independent Non-executive Director and the appointment of new members to various board committees, which may impact the company’s governance and strategic direction.

Shui On Land Announces 2025 Annual General Meeting Agenda
Apr 23, 2025

Shui On Land Limited has announced its upcoming Annual General Meeting scheduled for May 16, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to authorize the board to allot and issue additional shares, which could impact the company’s capital structure and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025