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Yuexiu Real Estate Investment Trust (HK:0405)
:0405
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Yuexiu Real Estate Investment (0405) AI Stock Analysis

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HK:0405

Yuexiu Real Estate Investment

(OTC:0405)

Rating:64Neutral
Price Target:
HK$1.00
▲(9.89%Upside)
The stock score is primarily influenced by solid operational efficiency and bullish technical indicators. However, the lack of profitability and negative P/E ratio weigh down the valuation. The high dividend yield provides some appeal, but the company must address its net losses to improve its financial health.
Positive Factors
Asset Management
Revitalizing quality assets to fend against headwinds ahead, with successful leasing run rates for converted units despite a tough market environment.
Leadership
The newly appointed CEO Ms Ou already served a key operational personnel of the REIT since 2019, indicating a smooth transition in leadership.
Negative Factors
Market Challenges
The China office market, comprising a significant portion of Yuexiu REIT’s portfolio, continues to face challenges amid a weak macro backdrop and incoming supply.
Supply-Demand Imbalance
Office weakness to persist due to supply-demand imbalance in the REIT’s key markets; cut FY25-26F DPU by 39-40% on revised distribution ratio and rental assumptions.

Yuexiu Real Estate Investment (0405) vs. iShares MSCI Hong Kong ETF (EWH)

Yuexiu Real Estate Investment Business Overview & Revenue Model

Company DescriptionYuexiu Real Estate Investment Trust (Yuexiu REIT) is a Hong Kong-based real estate investment trust that primarily invests in a diverse portfolio of income-generating commercial properties in China. The company's core assets include office buildings, retail spaces, and hotels, with a strategic focus on properties located in key economic hubs such as Guangzhou. Yuexiu REIT aims to deliver stable and sustainable distributions to its unitholders by optimizing the value of its property portfolio through active asset management and strategic acquisitions.
How the Company Makes MoneyYuexiu REIT generates revenue primarily through leasing income from its portfolio of commercial properties, which include office spaces, retail centers, and hotels. The company benefits from long-term lease agreements with tenants, providing a stable and recurring income stream. Additionally, Yuexiu REIT may engage in property development or redevelopment projects to enhance the value of its assets, thereby increasing rental income potential. Strategic acquisitions of new properties can also contribute to growth in revenue. The company may also form partnerships or joint ventures to leverage market opportunities and enhance its asset base. Furthermore, Yuexiu REIT's revenue is influenced by factors such as property market conditions, occupancy rates, and rental price trends in the regions where it operates.

Yuexiu Real Estate Investment Financial Statement Overview

Summary
Yuexiu Real Estate Investment demonstrates operational efficiency with strong EBIT and EBITDA margins. However, recent net losses pose risks to profitability and equity returns. The balance sheet remains stable with a manageable leverage profile, while cash flows are positive, indicating strong cash management.
Income Statement
55
Neutral
The income statement shows fluctuating revenue over recent years with a decline in total revenue from 2023 to 2024. Gross Profit Margin remains solid, indicating efficient cost management relative to revenue. However, the company faced a net loss in 2024, which negatively impacted the Net Profit Margin. EBIT and EBITDA margins are relatively strong, suggesting operational efficiency despite the net loss.
Balance Sheet
60
Neutral
The balance sheet reflects a stable equity base with a moderate Debt-to-Equity Ratio, indicating manageable leverage. However, there's a slight decrease in Stockholders' Equity from 2023 to 2024. The Equity Ratio is stable, suggesting a balanced capital structure. Return on Equity is negative in 2024 due to the net loss, which is a point of concern.
Cash Flow
65
Positive
Cash flow analysis indicates positive operating cash flow in 2024, though decreased from 2023. Free cash flow remains positive despite negative net income, highlighting strong cash generation capabilities. The Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios suggest that the company is generating cash effectively relative to its net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.03B2.09B1.87B1.80B1.76B
Gross Profit1.43B1.67B1.31B1.30B1.31B
EBITDA1.18B1.30B424.21M1.41B1.38B
Net Income-320.58M4.63M-529.04M645.00M565.50M
Balance Sheet
Total Assets43.28B43.85B43.87B43.86B36.26B
Cash, Cash Equivalents and Short-Term Investments1.40B1.24B1.37B1.45B1.80B
Total Debt20.59B20.28B19.94B17.63B14.02B
Total Liabilities42.10B27.01B26.54B27.94B20.49B
Stockholders Equity14.83B15.63B16.10B14.72B14.58B
Cash Flow
Free Cash Flow202.91M428.81M338.72M756.79M666.11M
Operating Cash Flow218.65M451.11M354.14M774.54M694.83M
Investing Cash Flow22.17M-91.81M-3.71B-4.16B-12.74M
Financing Cash Flow-269.98M-276.98M3.27B3.04B-198.60M

Yuexiu Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.91
Price Trends
50DMA
0.81
Positive
100DMA
0.80
Positive
200DMA
0.87
Positive
Market Momentum
MACD
0.03
Positive
RSI
65.37
Neutral
STOCH
81.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0405, the sentiment is Positive. The current price of 0.91 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.81, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0405.

Yuexiu Real Estate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$4.72B12.4710.03%2.05%17.83%-28.88%
74
Outperform
$4.02B20.531.17%7.97%
64
Neutral
HK$4.68B-2.11%7.32%-5.33%-2880.00%
61
Neutral
¥3.85B-3.39%0.69%-3.16%-28.30%
59
Neutral
$2.16B-1.09%8.68%-5.60%-1261.11%
56
Neutral
HK$2.51B43.06-0.78%9.71%-5.67%40.95%
54
Neutral
$1.23B3.770.67%6.13%-2.39%-129.28%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0405
Yuexiu Real Estate Investment
0.91
<0.01
0.55%
HK:87001
Hui Xian Real Estate Investment Trust
0.59
-0.02
-3.28%
HK:0808
Prosperity Real Estate Investment
1.38
0.14
11.02%
HK:6626
Yuexiu Services Group Ltd.
3.14
0.38
13.60%
HK:1426
Spring Real Estate Investment
1.71
-0.02
-1.38%
HK:0435
Sunlight Real Estate Investment
2.31
0.76
48.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025