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Yuexiu Real Estate Investment Trust (HK:0405)
:0405

Yuexiu Real Estate Investment (0405) AI Stock Analysis

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HK

Yuexiu Real Estate Investment

(OTC:0405)

Rating:58Neutral
Price Target:
HK$1.00
▲(19.05%Upside)
The overall stock score is primarily driven by strong technical analysis, showing positive price momentum. Despite operational efficiency and positive cash flows, financial performance is weighed down by recent net losses. The valuation is mixed, with a high dividend yield but negative earnings, reflecting the company's current challenges.
Positive Factors
Asset Management
Revitalizing quality assets has led to successful leasing rates for converted units, even in a challenging market.
Interest Rate and Policy
Onshore and offshore interest rate cuts and potential progress of REIT Connect could drive future growth.
Leadership Transition
The newly appointed CEO, Ms. Ou, has been a key operational figure since 2019, ensuring a smooth leadership transition.
Negative Factors
Distribution and Financial Performance
FY24 distribution per unit fell short of expectations due to an unexpected cut in the distribution ratio to preserve capital.
Market Challenges
The China office market, which forms a significant part of Yuexiu REIT's portfolio, is under pressure due to a weak macro environment and new supply.
Supply-Demand Imbalance
A high level of office supply until 2026 in the REIT's key markets may impact overall performance negatively.

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 (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 MoneyYuexiu 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
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 Price0.84
Price Trends
50DMA
0.77
Positive
100DMA
0.80
Positive
200DMA
0.88
Negative
Market Momentum
MACD
0.02
Negative
RSI
59.32
Neutral
STOCH
56.06
Neutral
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 0.84 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.77, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 56.06 is Neutral, 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 (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€4.42B11.6710.03%5.65%17.83%-28.88%
74
Outperform
$4.02B20.531.17%8.05%
61
Neutral
¥3.65B-3.39%0.39%-3.16%-28.30%
61
Neutral
¥3.65B-3.39%0.39%-3.16%-28.30%
59
Neutral
$2.19B-1.09%8.00%-5.60%-1261.11%
58
Neutral
HK$4.32B-2.11%6.58%-5.33%-2880.00%
57
Neutral
HK$2.54B43.06-0.78%8.94%-5.67%40.95%
53
Neutral
$1.19B3.430.13%7.15%-2.13%-128.06%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0405
Yuexiu Real Estate Investment
0.84
-0.03
-3.23%
HK:87001
Hui Xian Real Estate Investment Trust
0.56
-0.10
-15.15%
HK:87001
Hui Xian Real Estate Investment Trust
0.56
-0.10
-15.15%
HK:0808
Prosperity Real Estate Investment
1.38
0.15
12.65%
HK:6626
Yuexiu Services Group Ltd.
2.94
-0.03
-1.04%
HK:1426
Spring Real Estate Investment
1.73
>-0.01
-0.23%
HK:0435
Sunlight Real Estate Investment
2.30
0.79
52.42%
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: Jun 24, 2025