SOHO China (0410) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -6.44%
• EPS Growth: 36.56%
• Country: HK
• Employees: 1,650
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): -0.02
• Shares Outstanding: 5,199,524,000
• 10 Day Avg. Volume: 1,251,450
• 30 Day Avg. Volume: 1,678,500
• PEG Ratio: -0.70
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -44.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ―

SOHO China's stock score reflects significant financial challenges, with negative income impacting valuation and technical indicators showing bearish trends. The stable balance sheet provides some support, but the lack of profitability and cash flow consistency are key concerns. The stock's overall attractiveness is limited, requiring improvement in financial performance and market perception.

SOHO China Business Overview & Revenue Model

Company Description

SOHO China Limited, listed on the Hong Kong Stock Exchange under the ticker 0410, is one of the largest prime office property developers in China. The company focuses on the development and management of high-end commercial properties in prominent locations within major cities like Beijing and Shanghai. SOHO China's business model primarily revolves around property development, leasing, and management, catering to a diverse clientele ranging from multinational corporations to local businesses seeking premium office spaces.

How the Company Makes Money

SOHO China makes money through several key revenue streams, primarily centered around its real estate development and management operations. The company generates revenue by selling developed properties, leasing office spaces, and providing property management services. Leasing forms a significant part of their income, as SOHO China holds a substantial portfolio of properties in prime locations, which attract high rental rates. Additionally, the company engages in strategic partnerships and joint ventures to expand its real estate portfolio and enhance its market presence. These partnerships often contribute to its earnings by sharing the development costs and increasing the scale of projects. The company's focus on prime locations and premium office buildings ensures a steady demand, helping maintain occupancy rates and rental income.

SOHO China Financial Statement Overview

Summary

SOHO China's financial performance reveals challenges in revenue and profit with negative net income, despite efficient cost management. The balance sheet is stable with moderate leverage, but inconsistent cash flow raises liquidity concerns. Improvement is needed in profitability and cash flow to enhance financial health.

Income Statement

SOHO China's income statement indicates challenges in maintaining revenue growth, with a decline in total revenue from 2023 to 2024. The company experienced negative net income in recent years, showcasing a struggle with profitability. However, the gross profit margin remains high, suggesting efficiency in cost management. The EBIT margin has also slightly decreased, indicating some operational efficiency loss.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced use of leverage. The equity ratio is stable, suggesting strong asset financing via equity. Return on equity is negative due to net losses, showing a need for improved profitability. Overall, the financial position is relatively stable with a balanced capital structure.

Cash Flow

Cash flow analysis shows fluctuating free cash flow, with a concerning drop in operating cash flow in 2024. The lack of free cash flow growth highlights potential liquidity management issues. The company may face challenges converting income into cash, influencing its ability to finance operations and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.54B	1.68B	1.78B	1.74B	2.19B
	Gross Profit
1.28B	1.38B	1.44B	1.40B	1.39B
	EBIT
779.14M	812.76M	1.20B	744.37M	1.28B
	EBITDA
0.00	861.40M	1.43B	1.18B	301.63M
	Net Income Common Stockholders
-113.44M	-179.90M	61.21M	-131.10M	529.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
730.49M	769.46M	345.73M	734.70M	396.80M
	Total Assets
68.13B	68.62B	68.85B	70.45B	70.70B
	Total Debt
15.56B	15.88B	16.18B	18.00B	18.47B
	Net Debt
14.97B	15.12B	15.84B	17.26B	18.07B
	Total Liabilities
31.06B	31.42B	31.48B	33.35B	33.43B
	Stockholders Equity
36.14B	36.27B	36.44B	36.17B	36.36B
Cash Flow		Free Cash Flow
0.00	638.55M	-140.81M	34.67M	191.07M
	Operating Cash Flow
0.00	643.96M	-135.19M	56.26M	209.04M
	Investing Cash Flow
0.00	94.41M	1.66B	757.41M	-1.58B
	Financing Cash Flow
0.00	-316.95M	-1.93B	-455.08M	573.53M

SOHO China Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0410, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.54, and below the 200-day MA of 0.65, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0410.

SOHO China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0083	70 Outperform	$75.95B	19.98	2.17%	0.24%	-30.38%	-43.73%
1109	70 Neutral	$192.89B	6.96	9.66%	1.41%	9.97%	-19.80%
0688	69 Neutral	$152.13B	8.97	4.15%	2.16%	-10.21%	-40.22%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0017	52 Neutral	$13.41B	―	-10.34%	10.40%	-56.64%	-3398.20%
0410	49 Neutral	$2.76B	―	-0.31%	―	-6.44%	36.56%

SOHO China Corporate Events

SOHO China Announces Annual General Meeting with Key Resolutions

SOHO China Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, where key resolutions will be discussed, including the adoption of financial statements, re-election of directors, and authorization of the board to manage remuneration and share allotments. This meeting is crucial for stakeholders as it will address significant governance and operational strategies, impacting the company’s future direction and market positioning.

SOHO China Reports 2024 Financial Results Amid Market Challenges

SOHO China Limited reported its financial results for the year ending December 31, 2024, highlighting a stabilization in the occupancy rate of its investment properties at approximately 78%. Despite a challenging macroeconomic environment and pressure on the property leasing market, the company achieved a total revenue of RMB1,540 million. The gross profit margin from its property leasing business remained stable at 83%, although the company recorded a loss attributable to owners of RMB113 million. These results reflect the ongoing challenges in the real estate sector and SOHO China’s efforts to maintain operational stability.

SOHO China Schedules Board Meeting to Approve Annual Results

SOHO China Limited has announced a board meeting scheduled for March 27, 2025, to approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation, declaration, and payment of dividends, which could impact the company’s financial outlook and shareholder returns.