SOHO China (0410) AI Stock Analysis

• Market Cap: HK$2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -8.37%
• EPS Growth: 67.89%
• Country: HK
• Employees: 1,650
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.02
• Shares Outstanding: 5,199,524,000
• 10 Day Avg. Volume: 1,430,650
• 30 Day Avg. Volume: 1,153,966
• PEG Ratio: 0.80
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 11.29
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.53 ▼(-0.57% Downside)

The score is primarily constrained by declining revenue and recurring net losses (with mixed cash-flow durability), despite strong operating margins and moderate leverage. Technicals add a modest headwind with the stock trading below key moving averages and negative MACD, while valuation is also pressured by a negative P/E and no stated dividend yield.

Positive Factors

Strong Operating Margins

High operating margins indicate efficient cost management and strong pricing power, which can support profitability even amid revenue challenges.

Manageable Leverage

Low leverage improves financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Positive Cash Flow

Positive cash flow supports liquidity and operational resilience, enabling the company to fund operations and strategic initiatives without relying on external financing.

Negative Factors

Declining Revenue

Persistent revenue decline suggests weakening demand or competitive pressures, which can erode market position and long-term growth prospects.

Recurring Net Losses

Ongoing net losses highlight challenges in translating operational efficiency into profitability, potentially impacting investor confidence and capital access.

Inconsistent Cash Flow

Volatile cash flow undermines financial predictability and can strain liquidity, complicating long-term planning and investment strategies.

SOHO China Business Overview & Revenue Model

Company Description

SOHO China Limited is one of the leading property development companies in China, primarily focused on the development and management of high-quality office and commercial properties. Established in 1995, the company operates primarily in major cities such as Beijing and Shanghai, offering a range of services including property leasing, sales, and management. SOHO China's portfolio consists of iconic mixed-use developments that integrate office spaces with retail and leisure facilities, catering to a diverse clientele including multinational corporations and local enterprises.

How the Company Makes Money

SOHO China generates revenue primarily through the leasing and sale of its commercial properties. The company earns rental income from its extensive portfolio of office spaces, which are leased to various businesses. Additionally, SOHO China capitalizes on property sales, particularly during the launch of new developments or when selling off completed projects. The company also benefits from management fees associated with overseeing properties and providing ancillary services. Strategic partnerships with local and international firms enhance its market reach and operational efficiency, contributing significantly to its earnings. Furthermore, the company’s focus on high-end developments in prime locations allows it to command premium rental prices, thereby boosting its revenue streams.

SOHO China Financial Statement Overview

Summary

Operating margins are very strong and leverage appears manageable, but revenue has been drifting lower and net income was negative in both 2023 and 2024. Cash flow is currently positive, yet uneven over time with a sharp free-cash-flow decline in 2024, reducing overall financial quality.

Income Statement

Revenue has been drifting lower for several years (down again in 2024 after a slight decline in 2023), signaling a challenged top-line backdrop. Profitability at the operating line remains very strong with high gross and operating margins in 2023–2024, but this has not translated into bottom-line profitability: net income was negative in both 2023 and 2024 (and also negative in 2021), highlighting volatility and below-the-line pressure. Overall, strong operating economics are a clear strength, but inconsistent net results and declining revenue reduce the quality of earnings.

Balance Sheet

Leverage looks manageable: debt-to-equity sits around the low-0.4x range in 2023–2024, an improvement versus 2020–2021 levels near ~0.5x, and equity remains large relative to the asset base. However, returns on shareholders’ capital have been weak and recently negative (negative return in 2023–2024), reflecting the recent losses. In sum, the balance sheet appears relatively stable on leverage, but the low/negative return profile is a meaningful weakness.

Cash Flow

Cash generation was positive in 2023–2024 with operating cash flow and free cash flow both in the black, which supports liquidity. That said, free cash flow fell sharply in 2024 versus 2023 (a sizable decline), and cash flow has been inconsistent over time (including negative operating and free cash flow in 2022). A positive offset is that free cash flow has generally tracked reported earnings closely in recent years, but overall cash flow durability remains mixed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.54B	1.68B	1.78B	1.74B	2.19B
Gross Profit	1.43B	1.28B	1.38B	1.44B	1.40B	1.39B
EBITDA	65.50M	827.79M	861.40M	1.43B	1.24B	2.66B
Net Income	-97.47M	-113.44M	-179.90M	61.21M	-131.10M	529.57M
Balance Sheet
Total Assets	68.09B	68.13B	68.62B	68.85B	70.45B	70.70B
Cash, Cash Equivalents and Short-Term Investments	0.00	730.49M	769.46M	356.69M	2.20B	396.80M
Total Debt	9.59B	15.56B	15.88B	16.18B	18.00B	18.47B
Total Liabilities	31.13B	31.06B	31.42B	31.48B	33.35B	33.43B
Stockholders Equity	36.04B	36.14B	36.27B	36.44B	36.17B	36.36B
Cash Flow
Free Cash Flow	196.78M	298.52M	638.55M	-140.81M	34.67M	191.07M
Operating Cash Flow	196.78M	306.66M	643.96M	-135.19M	56.26M	209.04M
Investing Cash Flow	-228.88M	-154.20M	94.41M	1.66B	757.41M	-1.58B
Financing Cash Flow	-154.94M	-340.97M	-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 above the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.53, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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
1995	72 Outperform	HK$3.16B	6.87	8.42%	8.48%	2.83%	-6.65%
2156	71 Outperform	HK$3.79B	9.69	20.32%	5.77%	-7.78%	-29.31%
6989	66 Neutral	HK$1.00B	3.16	7.55%	16.21%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0029	61 Neutral	HK$2.83B	-45.12	-0.85%	0.08%	-6.63%	-101.17%
0410	49 Neutral	HK$2.76B	-26.37	-0.27%	―	-8.37%	67.89%