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

• Market Cap: HK$388.13M
• Dividend Yield: 1.15%
• Average Volume (3M): 1.47K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.03
• Revenue Growth: -8.55%
• EPS Growth: N/A
• Country: HK
• Employees: 17
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 277,232,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,466
• PEG Ratio: -0.02
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 9.90
• P/FCF Ratio: 69.61
• 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: 42 Neutral
• Price Target: HK$1.50 ▲(2.04% Upside)

Tern Properties Co. Ltd. is facing significant financial and operational challenges, with ongoing losses and declining cash flows. The technical indicators suggest a bearish trend, and the valuation is unattractive due to negative earnings. The strong balance sheet provides some stability, but strategic improvements are necessary to enhance profitability and investor confidence.

Positive Factors

Low leverage / strong equity position

A strong equity base and low leverage provide durable financial flexibility: ability to fund developments, absorb cyclical downturns, and avoid distress financing. This capital structure supports long-term project execution and strategic optionality without immediate refinancing risk.

Recurring leasing revenue

Stable lease-derived cash flows create a recurring revenue backbone that cushions earnings volatility from property sales. Over 2–6 months and beyond, recurring rents support liquidity, enable reinvestment in projects, and make cash generation less dependent on transaction timing.

High gross profit margins

Elevated gross margins indicate structural pricing power or efficient project-level costs. If overhead and operating inefficiencies are addressed, these margins provide a pathway to restore positive operating profitability and sustainably convert development revenue into free cash flow.

Negative Factors

Consistent negative net profit margins

Ongoing net losses erode retained earnings and limit the firm's ability to internally finance projects. Persistent negative margins reduce investor confidence, may necessitate capital raises or asset sales, and hinder long-term value creation unless operational turnaround occurs.

Declining revenue trend

Sustained top-line contraction signals weakening demand, execution issues, or unfavorable market positioning. Falling revenues reduce scale, strain gross-to-net conversion, and constrain margin recovery, making it harder to stabilize profits and fund development pipelines organically.

Declining free cash flow / liquidity pressure

Eroding free cash flow limits capacity to fund capex, pay down obligations, or support dividend policies. Over months this increases dependence on external financing, raises refinancing risk during downturns, and may force project delays or noncore asset disposals to shore up liquidity.

Tern Properties Co. Ltd. Business Overview & Revenue Model

Company Description

Tern Properties Company Limited, an investment holding company, engages in property investment and treasury investment businesses primarily in Hong Kong. The company owns commercial, office, and residential properties. It also invests in debt and equity securities. The company was formerly known as Eco Properties Limited and changed its name to Tern Properties Company Limited in March 1988. The company was incorporated in 1968 and is based in Central, Hong Kong. Tern Properties Company Limited is a subsidiary of Noranger Company Limited.

How the Company Makes Money

Tern Properties generates revenue primarily through the sale and leasing of developed properties. The company profits from residential and commercial real estate sales, which are a significant source of income, especially in high-demand markets. Additionally, Tern Properties earns recurring revenue from leasing its commercial spaces, ensuring a steady cash flow. The company may also engage in property management services for third-party clients, further diversifying its revenue streams. Strategic partnerships with construction firms and local government entities can enhance project feasibility and profitability, while favorable market conditions and urban development trends contribute positively to its earnings.

Tern Properties Co. Ltd. Financial Statement Overview

Summary

Tern Properties Co. Ltd. faces significant financial challenges, particularly in terms of profitability and revenue growth. The company maintains a strong balance sheet with low leverage, which is a positive aspect. However, the persistent losses and declining cash flows highlight the need for strategic improvements to enhance operational efficiency and profitability.

Income Statement

The income statement reveals a challenging financial situation with consistent negative net profit margins, indicating ongoing losses. Revenue has been declining over the years, with a notable drop in the most recent period. Despite high gross profit margins, the company struggles with negative EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

Cash flow analysis indicates a mixed performance. While the operating cash flow to net income ratio is positive, suggesting some operational cash generation, the free cash flow has been declining, indicating potential liquidity challenges. The free cash flow to net income ratio is stable, but the overall cash flow growth rate is negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.85M	50.40M	56.03M	51.88M	57.13M	64.49M
Gross Profit	20.21M	45.16M	51.11M	49.62M	55.28M	63.01M
EBITDA	29.46M	-46.79M	-3.00M	-68.30M	-45.49M	-120.05M
Net Income	15.91M	-54.46M	-9.80M	-75.20M	-55.08M	-134.23M
Balance Sheet
Total Assets	2.65B	2.63B	2.68B	2.75B	2.84B	3.19B
Cash, Cash Equivalents and Short-Term Investments	401.88M	375.37M	331.83M	202.20M	169.12M	158.25M
Total Debt	40.37M	42.18M	45.54M	47.68M	51.00M	244.83M
Total Liabilities	109.86M	105.05M	108.09M	109.31M	109.58M	307.95M
Stockholders Equity	2.54B	2.52B	2.58B	2.64B	2.73B	2.88B
Cash Flow
Free Cash Flow	14.97M	7.17M	14.62M	21.20M	17.65M	32.71M
Operating Cash Flow	14.97M	7.17M	15.63M	21.20M	17.65M	32.71M
Investing Cash Flow	-60.73M	-34.55M	20.80M	42.97M	182.66M	184.34M
Financing Cash Flow	-8.34M	-9.55M	-8.93M	-10.18M	-204.27M	-80.61M

Tern Properties Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 1.47 is below the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.46, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.14 is Positive, neither overbought nor oversold. The STOCH value of 79.48 is Neutral, 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
0606	66 Neutral	HK$619.20M	55.17	0.38%	―	-5.91%	-94.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0021	52 Neutral	HK$353.80M	-10.23	-4.27%	―	1303.01%	-45.00%
0089	51 Neutral	HK$701.91M	-1.86	-4.58%	3.60%	-4.31%	19.29%
0727	45 Neutral	HK$890.29M	-38.67	-7.00%	―	-49.07%	94.90%
0277	42 Neutral	HK$388.13M	24.39	0.63%	1.15%	-8.55%	―

Tern Properties Co. Ltd. Corporate Events

Tern Properties Reports Positive Interim Results for 2025

Tern Properties Co. Ltd. reported its interim financial results for the six months ending September 30, 2025, showing a significant turnaround with a profit attributable to owners of HK$14.6 million compared to a loss of HK$55.8 million in the previous year. This improvement is attributed to gains from financial assets and a reduction in fair value loss on investment properties, indicating a positive shift in the company’s financial health and potential for future growth.

The most recent analyst rating on (HK:0277) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Tern Properties Co. Ltd. stock, see the HK:0277 Stock Forecast page.

Tern Properties Declares Interim Dividend for 2025

Tern Properties Company Limited has announced an interim cash dividend of HKD 0.003 per share for the six months ending 30 September 2025. The dividend will be paid on 29 December 2025, with the record date set for 17 December 2025. This announcement reflects the company’s ongoing financial activities and provides a modest return to its shareholders, indicating stable financial management.

The most recent analyst rating on (HK:0277) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Tern Properties Co. Ltd. stock, see the HK:0277 Stock Forecast page.

Tern Properties Announces Financial Turnaround with Expected Profit

Tern Properties Company Limited announced a significant financial turnaround for the six months ending September 2025, with an expected profit before taxation of approximately HK$16 million, compared to a loss of HK$54 million in the previous year. This improvement is primarily due to a reduced fair value loss on investment properties. However, these results are preliminary and subject to adjustments, and stakeholders are advised to await the final interim results by the end of November 2025.

The most recent analyst rating on (HK:0277) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Tern Properties Co. Ltd. stock, see the HK:0277 Stock Forecast page.

Tern Properties Announces Upcoming Board Meeting for Interim Results

Tern Properties Company Limited has announced that its board of directors will convene on November 19, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

The most recent analyst rating on (HK:0277) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Tern Properties Co. Ltd. stock, see the HK:0277 Stock Forecast page.