Tern Properties Co. Ltd. (0277) AI Stock Analysis

• Market Cap: HK$499.02M
• Dividend Yield: 0.67%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: 1.66%
• EPS Growth: -51.60%
• Country: HK
• Employees: 17
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): -0.27
• Shares Outstanding: 277,232,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.40
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.69
• 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: 49 Neutral
• Price Target: ―

Tern Properties Co. Ltd. demonstrates strong financial stability with a robust balance sheet and positive cash flow, despite ongoing operational challenges and negative profitability. The technical indicators reflect bearish momentum, and the valuation is impacted by the negative P/E ratio, though the dividend yield is a positive aspect. Focus on improving revenue consistency and profitability is crucial for future performance.

Tern Properties Co. Ltd. Business Overview & Revenue Model

Company Description

Tern Properties Co. Ltd. (0277) is a Hong Kong-based company primarily engaged in property investment and development. The company focuses on acquiring, managing, and leasing commercial and residential properties. With a strategic emphasis on high-value real estate in prime locations, Tern Properties aims to provide stable and sustainable growth in property value and rental income.

How the Company Makes Money

Tern Properties Co. Ltd. generates revenue primarily through rental income from its portfolio of commercial and residential properties. The company's key revenue streams include long-term leasing agreements with tenants, which provide a consistent flow of rental income. Additionally, Tern Properties benefits from capital appreciation of its properties, as values tend to increase over time in strategic locations. The company may also engage in the sale of properties when market conditions are favorable, thereby realizing gains from property value appreciation. Strategic partnerships with real estate agents and property management firms enhance the company's ability to maintain high occupancy rates and optimize rental yields.

Tern Properties Co. Ltd. Financial Statement Overview

Summary

Tern Properties Co. Ltd. is experiencing operational challenges with negative profitability, yet maintains a strong balance sheet with low leverage. Cash flow remains positive, supporting operational needs despite ongoing net losses. The company should focus on improving revenue and margin stability to enhance overall financial health.

Income Statement

The company has shown improvement in its net income over the years, reducing its losses from a high in 2020. However, it still remains in a loss position with a negative net profit margin. Revenue growth is inconsistent, and both EBIT and EBITDA margins remain negative, indicating operational challenges.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio. The debt-to-equity ratio is low, suggesting low leverage and financial stability. However, the company has experienced a decline in total assets over the years.

Cash Flow

Positive free cash flow and operating cash flow have been maintained, showing resilience. However, the operating cash flow to net income ratio is skewed due to negative net income, indicating reliance on cash reserves rather than profit-generated cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
55.05M	56.03M	51.88M	57.13M	64.49M	73.12M
	Gross Profit
55.05M	51.11M	49.62M	55.28M	63.01M	71.79M
	EBIT
-71.90M	-7.94M	-60.95M	-37.58M	-109.00M	-465.33M
	EBITDA
18.26M	-3.00M	-49.83M	-18.79M	-120.05M	-514.87M
	Net Income Common Stockholders
-76.06M	-9.80M	-75.20M	-55.08M	-134.23M	-531.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
252.40M	331.83M	202.20M	169.12M	158.25M	85.78M
	Total Assets
2.63B	2.68B	2.75B	2.84B	3.19B	3.33B
	Total Debt
40.35M	45.54M	47.68M	51.00M	244.83M	306.74M
	Net Debt
-212.05M	-242.89M	-123.36M	-83.71M	155.38M	290.62M
	Total Liabilities
107.69M	108.09M	109.31M	109.58M	307.95M	366.59M
	Stockholders Equity
2.52B	2.58B	2.64B	2.73B	2.88B	2.96B
Cash Flow		Free Cash Flow
11.85M	14.62M	21.20M	17.65M	32.71M	27.79M
	Operating Cash Flow
11.85M	15.63M	21.20M	17.65M	32.71M	28.61M
	Investing Cash Flow
-47.54M	20.80M	42.97M	182.66M	184.34M	-141.93M
	Financing Cash Flow
-9.50M	-8.93M	-10.18M	-204.27M	-80.61M	-142.37M

Tern Properties Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0277, the sentiment is Negative. The current price of 1.8 is below the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.80, and below the 200-day MA of 2.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 0.01 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0277.

Tern Properties Co. Ltd. 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%	-12.74%	-17.17%
0016	73 Outperform	$248.34B	14.39	2.88%	4.83%	20.91%	-29.29%
0083	70 Outperform	$75.95B	19.98	2.17%	0.24%	-30.38%	-43.73%
0688	69 Neutral	HK$152.13B	8.97	4.15%	2.16%	-10.21%	-40.22%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0017	52 Neutral	$13.41B	―	-10.34%	10.40%	-56.64%	-3398.20%
0277	49 Neutral	HK$499.02M	―	-2.97%	0.67%	1.66%	-51.60%