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

• Market Cap: HK$460.21M
• Dividend Yield: 1.02%
• Average Volume (3M): 666.00
• 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: 57
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 277,232,900
• 10 Day Avg. Volume: 2,000
• 30 Day Avg. Volume: 666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.50
• Price Target Upside: -9.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: HK$1.50 ▼(-9.64% Downside)

The overall stock score is primarily impacted by the company's poor financial performance and bearish technical indicators. The negative valuation metrics further contribute to the low score, indicating significant risks for potential investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to navigate economic uncertainties and invest in growth opportunities.

Sustainable Development Focus

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

Diversified Real Estate Portfolio

Diversification across various property sectors reduces risk exposure and allows the company to capitalize on different market dynamics, contributing to revenue stability.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in maintaining market competitiveness and demand for the company's properties, potentially impacting long-term growth.

Persistent Losses

Ongoing losses reflect operational inefficiencies and may hinder the company's ability to reinvest in its business, affecting future profitability and expansion.

Declining Cash Flow

Declining cash flow can strain the company's ability to fund operations and investments, posing risks to financial health and limiting strategic flexibility.

Tern Properties Co. Ltd. Business Overview & Revenue Model

Company Description

Tern Properties Co. Ltd. (0277) is a diversified real estate company based in Hong Kong, primarily engaged in property investment, development, and management. The company operates across various sectors including commercial, residential, and industrial properties, focusing on maximizing value through strategic acquisitions and efficient management. Tern Properties also offers property leasing and facilities management services, catering to a wide range of clients and enhancing its portfolio with sustainable and innovative real estate solutions.

How the Company Makes Money

Tern Properties generates revenue primarily through rental income from its portfolio of investment properties, which includes commercial spaces, residential units, and industrial properties. The company also earns income from property sales and development projects, where it leverages its expertise to enhance the value of properties before selling them at a profit. Additionally, Tern Properties may engage in joint ventures or strategic partnerships with other real estate firms, allowing them to share resources and risks in larger projects, thus contributing to its overall earnings. The company's focus on sustainable development and efficient property management further helps in maintaining occupancy rates and optimizing cash flow.

Tern Properties Co. Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, with ongoing losses and declining revenue. Despite a strong balance sheet with low leverage, the negative profitability and cash flow trends highlight operational inefficiencies.

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	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: 1.66
• 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 1.66 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.77, and below the 200-day MA of 1.98, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 4.90 is Positive, neither overbought nor oversold. The STOCH value of 57.64 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	67 Neutral	HK$570.82M	50.86	0.38%	―	-5.91%	-94.58%
0021	55 Neutral	HK$449.20M	28.14	-4.27%	―	1303.01%	-45.00%
Sector *	53 Neutral	$1.28B	3.13	-6.08%	5.51%	-8.21%	-81.31%
0089	52 Neutral	HK$604.11M	―	-4.58%	3.81%	-4.31%	19.29%
0727	49 Neutral	HK$426.07M	18.18	6.51%	―	-39.27%	―
2292	43 Neutral	HK$554.40M	―	-5.68%	―	1.01%	36.08%
0277	42 Neutral	HK$460.21M	―	-2.14%	1.02%	-7.37%	-456.37%