Yuexiu Real Estate Investment (0405) AI Stock Analysis

• Market Cap: $4.69B
• Dividend Yield: 7.07%
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -6.57%
• EPS Growth: -390.60%
• Country: HK
• Employees: 726
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.07
• Shares Outstanding: 5,213,969,000
• 10 Day Avg. Volume: 1,877,750
• 30 Day Avg. Volume: 3,014,080
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 23.34
• Enterprise Value/Market Cap: 5.66
• Enterprise Value/Revenue: 13.53
• Enterprise Value/Gross Profit: 18.94
• Enterprise Value/Ebitda: 23.14
• 1Y Price Target: $1.01
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$1.00 ▲(11.11% Upside)

The overall stock score is primarily influenced by the company's stable financial performance and positive cash flow, despite recent net losses. Technical indicators suggest a neutral market sentiment, while the high dividend yield provides some valuation appeal. However, the negative P/E ratio and lack of earnings call data limit the stock's attractiveness.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, which can support long-term profitability.

Cash Generation

Positive free cash flow suggests the company can sustain operations and invest in growth, even during periods of net losses.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides financial flexibility and reduces risk, supporting long-term stability.

Negative Factors

Net Losses

Net losses can erode shareholder value and limit the company's ability to reinvest in growth, impacting long-term financial health.

Revenue Decline

Declining revenue can signal weakening market position or demand, potentially affecting future growth and profitability.

Negative Return on Equity

Negative ROE indicates the company is not generating sufficient returns on shareholder investments, impacting investor confidence.

Yuexiu Real Estate Investment Business Overview & Revenue Model

Company Description

Yuexiu Real Estate Investment (0405) is a leading property investment and development company based in Hong Kong, focused primarily on the real estate sector. The company engages in the acquisition, development, and management of residential, commercial, and mixed-use properties. With a robust portfolio that spans across major cities in China, Yuexiu aims to deliver high-quality properties that meet diverse market demands while enhancing shareholder value through strategic investments and sustainable practices.

How the Company Makes Money

Yuexiu Real Estate Investment generates revenue primarily through property rental income and sales of developed properties. The company owns a diverse portfolio of investment properties, which are leased to tenants, providing a steady stream of rental income. Additionally, Yuexiu engages in property development, selling residential and commercial units upon completion, which contributes significantly to its revenue. The company also benefits from strategic partnerships with local governments and other real estate firms, enabling access to prime land for development and joint ventures that enhance its market position. Factors such as market demand for housing, economic conditions in China, and government policies also play crucial roles in influencing the company's earnings.

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. Continued focus on revenue growth and profitability improvement will be crucial for future financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	2.03B	2.09B	1.87B	1.80B	1.76B
Gross Profit	1.40B	1.43B	1.67B	1.31B	1.30B	1.31B
EBITDA	1.15B	1.18B	1.30B	424.21M	1.41B	1.38B
Net Income	-633.48M	-320.58M	4.63M	-529.04M	645.00M	565.50M
Balance Sheet
Total Assets	42.79B	43.28B	43.85B	43.87B	43.86B	36.26B
Cash, Cash Equivalents and Short-Term Investments	364.60M	1.40B	1.24B	1.37B	1.48B	1.83B
Total Debt	20.57B	20.59B	20.28B	19.94B	17.63B	14.02B
Total Liabilities	41.61B	27.27B	27.01B	26.54B	27.94B	20.49B
Stockholders Equity	14.51B	14.83B	15.63B	16.10B	14.72B	14.58B
Cash Flow
Free Cash Flow	371.82M	202.91M	428.81M	338.72M	756.79M	666.11M
Operating Cash Flow	371.82M	218.65M	451.11M	354.14M	774.54M	694.83M
Investing Cash Flow	6.63M	22.17M	-91.81M	-3.71B	-4.16B	-12.74M
Financing Cash Flow	-388.66M	-269.98M	-276.98M	3.27B	3.04B	-198.60M

Yuexiu Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0405, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.92, and above the 200-day MA of 0.83, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6626	70 Outperform	HK$3.80B	11.24	8.96%	6.73%	5.13%	-38.76%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0808	59 Neutral	$2.20B	-16.33	-2.04%	8.18%	-7.79%	-73.32%
0435	58 Neutral	$4.02B	-43.48	―	7.76%	―	―
0405	55 Neutral	$4.69B	-6.90	-4.08%	7.07%	-6.57%	-390.60%
1426	52 Neutral	HK$2.41B	―	-2.11%	9.33%	-10.55%	-314.81%
87001	46 Neutral	¥3.26B	-4.17	-3.62%	0.53%	-8.25%	-55.79%

Yuexiu Real Estate Investment Corporate Events

Yuexiu REIT Reports 2025 Interim Financial Results

Yuexiu Real Estate Investment Trust (Yuexiu REIT) is a Hong Kong-based collective investment scheme primarily engaged in the management of a diversified portfolio of properties across Mainland China and Hong Kong, including office buildings, retail malls, hotels, and serviced apartments.