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

• Market Cap: HK$390.90M
• Dividend Yield: 1.15%
• Average Volume (3M): 1.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• 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: Hold
• 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

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to weather economic challenges and invest in growth opportunities.

Sustainable Development Focus

Emphasizing sustainable development can enhance long-term property value and appeal to environmentally conscious tenants, supporting stable revenue streams.

Diversified Property Portfolio

A diversified property portfolio reduces risk exposure to any single market segment, providing resilience against sector-specific downturns and enhancing revenue stability.

Negative Factors

Declining Revenue

Consistent revenue decline can erode market position and limit the company's ability to invest in growth, necessitating strategic changes to reverse the trend.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and can strain financial resources, impacting the company's ability to generate shareholder value.

Declining Cash Flow

Declining cash flow can hinder the company's ability to fund operations and growth initiatives, potentially leading to liquidity issues if not addressed.

Tern Properties Co. Ltd. Business Overview & Revenue Model

Company Description

Tern Properties Co. Ltd. (0277) is a real estate development and investment company based in Hong Kong. The company specializes in residential, commercial, and mixed-use property development, focusing on creating high-quality living and working spaces. Tern Properties is involved in various stages of property management, including acquisition, development, leasing, and sales, catering to the growing demand for real estate in urban areas.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0277, the sentiment is Neutral. The current price of 1.47 is above the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.41, and below the 200-day MA of 1.68, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 89.10 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0606	63 Neutral	HK$532.13M	47.41	0.38%	―	-5.91%	-94.58%
0021	54 Neutral	HK$345.85M	-10.00	-4.27%	―	1303.01%	-45.00%
0089	51 Neutral	HK$661.64M	-1.75	-4.58%	3.43%	-4.31%	19.29%
0727	45 Neutral	HK$254.37M	10.85	-7.00%	―	-49.07%	94.90%
0277	42 Neutral	HK$390.90M	-7.18	0.63%	1.15%	-8.55%	―

Tern Properties Co. Ltd. Corporate Events

Tern Properties Successfully Passes All AGM Resolutions

Tern Properties Co. Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on August 20, 2025. Key resolutions included the approval of financial statements, the declaration of a final dividend, re-election of directors, appointment of a new auditor, and the adoption of new articles of association. All resolutions received overwhelming support, indicating strong shareholder confidence in the company’s governance and strategic direction.