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HKR International Limited (HK:0480)
:0480

HKR International Limited (0480) AI Stock Analysis

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HK

HKR International Limited

(Frankfurt:0480)

Rating:50Neutral
Price Target:
HKR International Limited's overall stock score reflects significant financial challenges, primarily due to net losses and cash flow issues. While technical indicators suggest moderate market momentum, the company's valuation metrics highlight concerns. Investors should be wary of the financial health and consider the potential need for strategic improvements.
Positive Factors
Development Earnings
River One in Shanghai, with over 90% pre-sold, should support development earnings in the near term.
Land Bank
A sizeable low-cost land bank in Discovery Bay is expected to underpin the company's long-term growth.
Valuation
The stock is trading at a steep 94% discount to estimated NAV, suggesting strong potential for valuation upside.
Negative Factors
Dividend
Interim dividend was omitted, which might concern income-focused investors.
Net Loss
FY25 net loss widened to HKD786m, mainly due to higher revaluation deficits on investment properties.
Residential Demand
Any deterioration in residential demand in Hong Kong and China would impact the company’s residential sales earnings.

HKR International Limited (0480) vs. iShares MSCI Hong Kong ETF (EWH)

HKR International Limited Business Overview & Revenue Model

Company DescriptionHKR International Limited, an investment holding company, invests in, develops, and manages real estate properties in Hong Kong, Mainland China, Japan, and Southeast Asia. The company operates through five segments: Property Development, Property Investment, Transportation Services And Property Management, Hotel Operations, and Leisure Businesses. It develops and manages residential and commercial properties, hotels, and serviced apartments. The company also operates hotels, clubs, and leisure venues under the Auberge Hospitality leisure brand; and leisure projects, which include Discovery Bay Recreation Club, Club Siena, Discovery Bay Golf Club, LYC, DBIR, and Peony Chinese restaurant. In addition, it offers transportation services in Discovery Bay, including ferry, bus transport, and tunnel operations. The company was founded in 1977 and is based in Central, Hong Kong.
How the Company Makes MoneyHKR International Limited generates revenue through multiple streams, primarily driven by property development and property investment. The company earns income from the sale of residential and commercial properties, as well as from leasing and managing retail and office spaces. Its hospitality division contributes to revenue through hotel operations and related services. Additionally, HKR International benefits from its investments in healthcare services, which provide steady income streams from medical and wellness facilities. Strategic partnerships and joint ventures in property and infrastructure projects also contribute to the company's earnings, enhancing its portfolio and expanding its market reach.

HKR International Limited Financial Statement Overview

Summary
HKR International Limited shows mixed financial health. Revenue growth is promising, but the net loss and negative cash flow pose significant challenges. The balance sheet is relatively strong with manageable leverage, but cash flow issues and operational inefficiencies require attention. Strategic adjustments may be necessary to enhance profitability and cash generation.
Income Statement
40
Negative
The company experienced significant volatility in recent financial performance. Revenue for 2024 showed a strong increase compared to 2023, but the net income dropped to a significant loss of -468 million HKD. The gross profit margin remains at a healthy level; however, the net profit margin has deteriorated sharply, indicating challenges in managing costs or one-off expenses. The EBIT and EBITDA margins indicate some operational efficiency, but the recent net loss overshadows these strengths.
Balance Sheet
55
Neutral
The balance sheet reflects a relatively stable financial position with a debt-to-equity ratio of 0.54, indicating moderate leverage. The equity ratio is healthy, demonstrating a strong equity base relative to total assets. However, the decrease in stockholders' equity from the previous year, coupled with increased debt, suggests potential financial strain or strategic investments. Overall, the company maintains a solid asset base, but leverage and decreasing equity are areas of concern.
Cash Flow
30
Negative
The cash flow statement shows significant deterioration in operating cash flow, leading to negative free cash flow. This highlights potential liquidity issues and the inability to cover operational costs through generated cash. The negative free cash flow growth rate and poor free cash flow to net income ratio underscore the company's current cash flow challenges.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue1.64B3.94B1.69B4.17B3.81B4.70B
Gross Profit579.10M1.39B787.70M1.49B1.77B1.94B
EBITDA130.50M236.30M327.70M1.68B1.31B1.63B
Net Income-1.06B-468.00M455.60M1.10B897.30M1.62B
Balance Sheet
Total Assets43.03B41.82B46.90B43.41B38.15B37.24B
Cash, Cash Equivalents and Short-Term Investments2.58B1.66B6.23B2.75B3.09B2.54B
Total Debt14.41B12.63B13.46B12.38B8.28B7.40B
Total Liabilities17.10B15.68B19.63B15.46B11.54B12.49B
Stockholders Equity23.21B23.36B24.40B25.03B23.68B22.07B
Cash Flow
Free Cash Flow-1.09B-2.91B2.44B-5.54B581.50M-9.60M
Operating Cash Flow-865.30M-2.66B2.55B-5.35B857.70M457.80M
Investing Cash Flow-93.90M-259.10M374.70M2.19B-715.30M-1.21B
Financing Cash Flow183.70M-1.57B767.50M2.77B208.00M708.50M

HKR International Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.92
Price Trends
50DMA
0.90
Positive
100DMA
0.88
Positive
200DMA
0.93
Negative
Market Momentum
MACD
<0.01
Positive
RSI
47.92
Neutral
STOCH
51.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0480, the sentiment is Negative. The current price of 0.92 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.90, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0480.

HKR International Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$6.93B18.28-1.34%6.83%4.65%-25.39%
50
Neutral
HK$1.37B-3.45%1.15%-59.65%-290.78%
$234.50M-2.65%
$122.85M-118.67%
45
Neutral
HK$734.59M-3.41%4.92%0.96%83.98%
HK$1.65B10.042.34%8.70%
€129.32M-20.46%5.04%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0480
HKR International Limited
0.90
-0.35
-28.00%
SHTGF
Shun Tak Holdings
0.08
-0.02
-20.00%
SIOLF
Sino-Ocean Group Holding
0.02
-0.02
-50.00%
HK:0251
SEA Holdings Ltd.
1.23
-0.19
-13.38%
HK:0050
Hong Kong Ferry Holdings Co. Ltd.
4.63
0.68
17.22%
DE:TNY1
China Merchants Land Limited
0.02
>-0.01
-33.33%

HKR International Limited Corporate Events

HKR International Appoints New Independent Non-Executive Director
Mar 26, 2025

HKR International Limited has announced the appointment of Ms. Chiu Kwai Fong Florence as an Independent Non-executive Director, effective March 26, 2025. Ms. Chiu, with a distinguished career at PricewaterhouseCoopers and extensive public service in Hong Kong, will also join the company’s Audit and Corporate Governance Committees. This strategic appointment is expected to enhance the company’s governance and oversight capabilities, potentially strengthening its market position and stakeholder confidence.

HKR International Limited Announces Board Composition and Committee Roles
Mar 26, 2025

HKR International Limited has announced the composition of its board of directors and the roles they will undertake. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Remuneration, Nomination, and Corporate Governance Committees. This announcement highlights the company’s commitment to strong corporate governance and structured leadership, which is crucial for maintaining investor confidence and ensuring regulatory compliance.

HKR International Updates Nomination Committee Terms
Mar 26, 2025

HKR International Limited has updated the terms of reference for its Nomination Committee, which was originally formed in 2012. The committee is tasked with reviewing the board’s structure and composition, assessing the independence of non-executive directors, and making recommendations on board appointments and succession planning. This update emphasizes the company’s commitment to maintaining a diverse and effective board, aligning with its corporate strategy and governance practices.

HKR International Forfeits Unclaimed Dividends from 2017/2018
Mar 19, 2025

HKR International Limited announced the forfeiture of unclaimed dividends from the 2017/2018 financial year, amounting to HK$40,608.15, which will revert to the company. This action, in accordance with the company’s Articles of Association, reflects a standard practice for handling unclaimed dividends and may impact stakeholders by reallocating these funds back into the company’s resources.

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: May 01, 2025