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Sunlight Real Estate Investment
(0435)
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Rating:58Neutral
Price Target:
HK$2.50
▲(10.13% Upside)
Action:Downgraded
Date:10/20/25
The overall stock score of 58 reflects a balance between operational efficiency and financial challenges. Strong cash flow generation and a high dividend yield are positive factors, but declining revenues and net losses weigh heavily on the score. Technical indicators suggest stability, but valuation concerns due to a negative P/E ratio limit the score.
Positive Factors
Strong Cash Flow Growth
A 54.7% free cash flow growth rate shows durable cash generation from property operations, which supports sustainable distributions, funds maintenance and refurbishments, and reduces reliance on external financing. Strong FCF provides a buffer if net income remains volatile and enables long-term asset management initiatives.
Negative Factors
Declining Revenues
A persistent revenue decline (-3.36%) is a structural concern for a rent-driven REIT because falling top line reduces distributable income and limits funds for tenant retention or asset upgrades. Continued revenue erosion can compress occupancy economics and weaken long-term cashflow stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Flow Growth
A 54.7% free cash flow growth rate shows durable cash generation from property operations, which supports sustainable distributions, funds maintenance and refurbishments, and reduces reliance on external financing. Strong FCF provides a buffer if net income remains volatile and enables long-term asset management initiatives.
Read all positive factors
Sunlight Real Estate Investment (0435) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.81B
Dividend Yield7.9%
Average Volume (3M)942.37K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue GrowthN/A
EPS GrowthN/A
CountryHK
Employees137
SectorGeneral
Sector StrengthN/A
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.11
Shares Outstanding1,757,268,400
10 Day Avg. Volume522,241
30 Day Avg. Volume942,374
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.30
Price to Sales (P/S)4.68
P/FCF Ratio7.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.81Price Target Upside23.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)HK$761.20M
Sunlight Real Estate Investment Business Overview & Revenue Model
Company Description
Sunlight Real Estate Investment Trust, trading under stock code 435, is a real estate investment trust officially sanctioned by the Securities and Futures Commission. It was legally established via a trust deed on May 26, 2006 (which has since bee...
How the Company Makes Money
Sunlight REIT makes money primarily by earning recurring rental income from leasing space in its property portfolio to tenants. Revenue is generated through base rents under lease agreements, and may also include turnover rent (where rent is partl...
Sunlight Real Estate Investment Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 582.46M | 824.22M | 783.27M | 809.00M | 802.93M | 808.06M |
| Gross Profit | 449.98M | 642.18M | 626.62M | 649.53M | 650.07M | 648.40M |
| EBITDA | 372.14M | 534.21M | 172.54M | 517.39M | 543.98M | 539.94M |
| Net Income | -189.32M | -115.34M | -28.43M | -28.43M | 102.94M | -233.68M |
Balance Sheet | ||||||
| Total Assets | 17.94B | 18.52B | 19.22B | 19.22B | 18.96B | 19.20B |
| Cash, Cash Equivalents and Short-Term Investments | 452.12M | 451.61M | 445.49M | 485.24M | 630.99M | 623.30M |
| Total Debt | 4.81B | 4.95B | 4.87B | 4.87B | 4.29B | 4.40B |
| Total Liabilities | 5.54B | 5.51B | 5.55B | 5.55B | 4.91B | 5.08B |
| Stockholders Equity | 12.40B | 13.01B | 13.67B | 13.67B | 14.05B | 14.12B |
Cash Flow | ||||||
| Free Cash Flow | 265.77M | 491.61M | 501.87M | 404.01M | 409.26M | 452.12M |
| Operating Cash Flow | 265.78M | 491.67M | 524.65M | 404.06M | 409.27M | 452.21M |
| Investing Cash Flow | -65.39M | 32.91M | -664.91M | -664.91M | 107.62M | -308.76M |
| Financing Cash Flow | -318.78M | -526.24M | 65.99M | 65.99M | -514.39M | -367.92M |
Sunlight Real Estate Investment Technical Analysis
Negative
2.27
Price Trends
2.28
Negative
2.35
Negative
2.28
Negative
Market Momentum
-0.03
Positive
35.46
Neutral
20.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0435, the sentiment is Negative. The current price of 2.27 is above the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.28, and below the 200-day MA of 2.28, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0435.
Sunlight Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | HK$3.81B | -19.93 | ― | 7.90% | ― | ― | |
57 Neutral | HK$2.25B | -8.64 | -2.04% | 8.01% | -7.10% | -226.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | HK$1.13B | -9.89 | -3.21% | 8.62% | -19.28% | 46.62% | |
52 Neutral | HK$3.52B | -4.51 | -4.08% | 7.40% | -9.48% | -99.42% | |
51 Neutral | HK$1.87B | -7.46 | -2.11% | 9.27% | -5.49% | -283.38% | |
47 Neutral | ¥2.51B | -3.43 | -3.49% | 0.54% | 3.75% | 2.18% |
* General Sector Average
HK:0435
Sunlight Real Estate Investment
2.17
0.08
3.63%
HK:0808
Prosperity Real Estate Investment
1.41
0.14
10.94%
HK:1426
Spring Real Estate Investment
1.26
-0.36
-21.98%
HK:0405
Yuexiu Real Estate Investment
0.66
-0.15
-18.92%
HK:1503
China Merchants Commercial Real Estate Investment Trust
1.00
-0.14
-12.13%
HK:87001
Hui Xian Real Estate Investment Trust
0.39
-0.12
-23.76%
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.