HKR International Limited (0480) AI Stock Analysis

• Market Cap: HK$1.37B
• Dividend Yield: 1.15%
• Average Volume (3M): 492.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -59.65%
• EPS Growth: -290.78%
• Country: HK
• Employees: 1,450
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Diversified
• EPS (TTM): -0.21
• Shares Outstanding: 1,485,301,800
• 10 Day Avg. Volume: 902,891
• 30 Day Avg. Volume: 492,398
• PEG Ratio: -0.14
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.54
• 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: HK$1.18
• Price Target Upside: 28.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• 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 Business Overview & Revenue Model

Company Description

HKR 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 Money

HKR 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

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

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

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.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.64B	3.94B	1.69B	4.17B	3.81B	4.70B
Gross Profit	579.10M	1.39B	787.70M	1.49B	1.77B	1.94B
EBITDA	130.50M	236.30M	327.70M	1.68B	1.31B	1.63B
Net Income	-1.06B	-468.00M	455.60M	1.10B	897.30M	1.62B
Balance Sheet
Total Assets	43.03B	41.82B	46.90B	43.41B	38.15B	37.24B
Cash, Cash Equivalents and Short-Term Investments	2.58B	1.66B	6.23B	2.75B	3.09B	2.54B
Total Debt	14.41B	12.63B	13.46B	12.38B	8.28B	7.40B
Total Liabilities	17.10B	15.68B	19.63B	15.46B	11.54B	12.49B
Stockholders Equity	23.21B	23.36B	24.40B	25.03B	23.68B	22.07B
Cash Flow
Free Cash Flow	-1.09B	-2.91B	2.44B	-5.54B	581.50M	-9.60M
Operating Cash Flow	-865.30M	-2.66B	2.55B	-5.35B	857.70M	457.80M
Investing Cash Flow	-93.90M	-259.10M	374.70M	2.19B	-715.30M	-1.21B
Financing Cash Flow	183.70M	-1.57B	767.50M	2.77B	208.00M	708.50M

HKR International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$6.93B	18.28	-1.34%	6.83%	4.65%	-25.39%
0480	50 Neutral	HK$1.37B	―	-3.45%	1.15%	-59.65%	-290.78%
SHTGF		$234.50M	―	-2.65%	―	―	―
SIOLF		$122.85M	―	-118.67%	―	―	―
0251	45 Neutral	HK$734.59M	―	-3.41%	4.92%	0.96%	83.98%
0050		HK$1.65B	10.04	2.34%	8.70%	―	―
TNY1		€129.32M	―	-20.46%	5.04%	―	―

HKR International Limited Corporate Events

HKR International Appoints New Independent Non-Executive Director

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

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

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

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.