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

• Market Cap: HK$499.02M
• Dividend Yield: 0.94%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -7.37%
• EPS Growth: -456.37%
• Country: HK
• Employees: 17
• Sector: Real Estate
• Sector Strength: 46
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 277,232,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.03
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 13.26
• P/FCF Ratio: 93.20
• 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 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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.05M	50.40M	56.03M	51.88M	57.13M	64.49M
Gross Profit	55.05M	45.16M	51.11M	49.62M	55.28M	63.01M
EBITDA	18.26M	-46.79M	-3.00M	-49.83M	-18.79M	-120.05M
Net Income	-76.06M	-54.46M	-9.80M	-75.20M	-55.08M	-134.23M
Balance Sheet
Total Assets	2.63B	2.63B	2.68B	2.75B	2.84B	3.19B
Cash, Cash Equivalents and Short-Term Investments	252.40M	375.37M	331.83M	202.20M	169.12M	158.25M
Total Debt	40.35M	42.18M	45.54M	47.68M	51.00M	244.83M
Total Liabilities	107.69M	105.05M	108.09M	109.31M	109.58M	307.95M
Stockholders Equity	2.52B	2.52B	2.58B	2.64B	2.73B	2.88B
Cash Flow
Free Cash Flow	11.85M	7.17M	14.62M	21.20M	17.65M	32.71M
Operating Cash Flow	11.85M	7.17M	15.63M	21.20M	17.65M	32.71M
Investing Cash Flow	-59.02M	-34.55M	20.80M	42.97M	182.66M	184.34M
Financing Cash Flow	-8.79M	-9.55M	-8.93M	-10.18M	-204.27M	-80.61M

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: Negative

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 2.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 0.02 is Positive, 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 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	67 Neutral	HK$580.50M	9.40	2.12%	―	-4.66%	-77.08%
Sector *	62 Neutral	$6.93B	13.52	-0.57%	7.16%	3.62%	-22.63%
0021	55 Neutral	HK$484.98M	28.37	2.08%	―	450.21%	―
0089	52 Neutral	HK$601.23M	―	-3.95%	7.18%	-1.13%	-79.58%
0277	49 Neutral	HK$499.02M	―	-2.14%	0.94%	-7.37%	-456.37%
0727	46 Neutral	HK$378.37M	16.82	6.51%	―	-39.27%	―
2292	43 Neutral	HK$525.60M	―	-8.20%	―	8.54%	-54.48%