Yuexiu Real Estate Investment (0405) AI Stock Analysis

• Market Cap: HK$4.11B
• Dividend Yield: 5.57%
• Average Volume (3M): 3.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -5.33%
• EPS Growth: -2880.00%
• Country: HK
• Employees: 726
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Diversified
• EPS (TTM): -0.07
• Shares Outstanding: 5,141,086,400
• 10 Day Avg. Volume: 4,851,721
• 30 Day Avg. Volume: 3,395,071
• PEG Ratio: 0.09
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.64
• 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$1.02
• Price Target Upside: 27.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: HK$1.00 ▲(25.00%Upside)

The overall score is driven by strong operational efficiency and cash management despite recent net losses. Technical indicators suggest short-term bullish momentum, but the negative P/E ratio and high dividend yield present mixed signals for valuation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Asset Revitalization

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

Distribution Concerns

FY24 DPU missed expectations on an unexpected cut in distribution ratio to preserve capital.

Office 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.

Yuexiu Real Estate Investment Business Overview & Revenue Model

Company Description

Yuexiu Real Estate Investment Trust (0405), commonly known as Yuexiu REIT, is a prominent real estate investment trust listed on the Hong Kong Stock Exchange. The company primarily focuses on investing in commercial properties, including office buildings, shopping malls, and hotels, primarily located in Guangzhou, China. As a REIT, Yuexiu REIT aims to provide investors with stable income distributions derived from its property portfolio.

How the Company Makes Money

Yuexiu REIT generates revenue primarily through rental income from its portfolio of commercial properties. The trust earns money by leasing office spaces, retail units, and rooms in its hotels to tenants. Additionally, Yuexiu REIT benefits from property appreciation and capital gains realized through the strategic acquisition and disposal of assets. The trust may also engage in property development or redevelopment projects to enhance the value of its portfolio. Significant partnerships with property management companies and local authorities can also contribute to operational efficiencies and increased profitability for the trust.

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

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.03B	2.09B	1.87B	1.80B	1.76B
	Gross Profit
1.43B	1.67B	1.31B	1.30B	1.31B
	EBIT
1.29B	1.08B	980.30M	956.74M	982.28M
	EBITDA
1.18B	1.30B	424.21M	1.41B	1.38B
	Net Income Common Stockholders
-320.58M	4.63M	-529.04M	645.00M	565.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	1.24B	1.37B	1.45B	1.80B
	Total Assets
43.28B	43.85B	43.87B	43.86B	36.26B
	Total Debt
20.59B	20.28B	19.94B	17.63B	14.02B
	Net Debt
19.20B	19.15B	18.60B	16.18B	12.22B
	Total Liabilities
42.10B	27.01B	26.54B	27.94B	20.49B
	Stockholders Equity
14.83B	15.63B	16.10B	14.72B	14.58B
Cash Flow		Free Cash Flow
202.91M	428.81M	338.72M	756.79M	666.11M
	Operating Cash Flow
218.65M	451.11M	354.14M	774.54M	694.83M
	Investing Cash Flow
22.17M	-91.81M	-3.71B	-4.16B	-12.74M
	Financing Cash Flow
-269.98M	-276.98M	3.27B	3.04B	-198.60M

Yuexiu Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0405, the sentiment is Neutral. The current price of 0.8 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.75, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0405.

Yuexiu Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	71 Outperform	$3.74B	20.53	1.17%	6.26%	―	―
6626	68 Neutral	HK$4.42B	11.67	10.03%	6.80%	17.83%	-28.85%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0405	61 Neutral	HK$4.11B	―	-2.11%	5.57%	-5.33%	-2880.00%
0808	59 Neutral	$2.07B	―	-1.09%	8.48%	-5.60%	-1261.11%
87001	55 Neutral	¥3.23B	―	-3.39%	0.44%	-3.16%	-28.30%
1426	54 Neutral	$2.46B	43.06	-0.78%	9.10%	-5.67%	40.95%