Gemdale Properties & Investment (0535) AI Stock Analysis

• Market Cap: HK$4.57B
• Dividend Yield: 0.41%
• Average Volume (3M): 30.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -23.77%
• EPS Growth: -1342.92%
• Country: HK
• Employees: 2,500
• Sector: Financial
• Sector Strength: 79
• Industry: Real Estate - Development
• EPS (TTM): -0.30
• Shares Outstanding: 16,613,688,000
• 10 Day Avg. Volume: 9,126,933
• 30 Day Avg. Volume: 30,362,132
• PEG Ratio: <0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.82
• 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: 42 Neutral
• Price Target: ―

Gemdale Properties & Investment's stock score reflects significant financial challenges, with declining revenues, negative margins, and non-existent cash flows. While technical indicators show some potential for short-term recovery, the negative P/E ratio and low dividend yield indicate valuation concerns. The overall outlook is weak, suggesting the need for strategic improvements to enhance financial health and investor confidence.

Gemdale Properties & Investment Business Overview & Revenue Model

Company Description

Gemdale Properties & Investment (0535) is a prominent real estate development and investment company based in China. It primarily engages in the development, management, and investment of residential and commercial properties. The company operates through various segments, including property development, property investment, and property management services. Gemdale is known for delivering high-quality residential communities and commercial properties, aiming to meet the diverse needs of its clients while maintaining sustainable growth.

How the Company Makes Money

Gemdale Properties & Investment generates revenue primarily through the sale and lease of residential and commercial properties. The company's property development segment involves acquiring land, constructing properties, and selling residential units, which forms a significant portion of its income. Additionally, Gemdale earns revenue through its property investment segment by leasing commercial spaces such as office buildings and retail centers. The property management services segment provides ongoing management and maintenance of residential communities and commercial properties, offering an additional revenue stream. Strategic partnerships and joint ventures with other real estate developers and financial institutions also contribute to the company's earnings by expanding its project portfolio and market reach.

Gemdale Properties & Investment Financial Statement Overview

Summary

Gemdale Properties & Investment is facing significant financial difficulties. Revenue and profit margins have deteriorated sharply, leverage has increased, and cash flow generation is non-existent in the latest period. These factors suggest a challenging financial outlook, requiring strategic adjustments to improve profitability and liquidity.

Income Statement

The income statement shows a concerning decline. Revenue decreased by 24.38% from 2023 to 2024, while net income turned negative, indicating a significant deterioration in profitability. Gross profit margin dropped to 3.83% in 2024, down from 20.71% in 2023, highlighting decreased efficiency in managing costs. EBIT and EBITDA margins also turned negative, indicating operational challenges.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio increased to 1.26 in 2024 from 0.55 in 2023, suggesting higher leverage and financial risk. However, the equity ratio is at 23.30%, indicating a moderate level of equity financing. Return on equity turned negative, reflecting the loss in net income and raising concerns about the company's ability to generate returns for shareholders.

Cash Flow

The cash flow statement highlights significant issues, with operating and free cash flows both at zero for 2024, indicating no cash generation from operations. The lack of free cash flow growth poses a challenge for funding operations and investments, and suggests liquidity concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.20B	17.45B	10.30B	14.18B	16.88B
	Gross Profit
2.43B	3.61B	209.48M	930.09M	5.54B
	EBIT
858.98M	2.13B	9.10M	757.15M	5.35B
	EBITDA
49.80M	3.19B	40.89M	792.80M	5.38B
	Net Income Common Stockholders
-4.57B	342.72M	2.32B	4.01B	4.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.82B	2.45B	6.05B	8.77B	7.15B
	Total Assets
75.99B	91.10B	85.99B	77.08B	64.41B
	Total Debt
12.13B	12.39B	7.03B	6.19B	19.79B
	Net Debt
10.31B	9.94B	988.66M	-2.54B	12.66B
	Total Liabilities
54.93B	64.75B	59.01B	52.49B	43.31B
	Stockholders Equity
17.70B	22.48B	22.39B	21.74B	18.89B
Cash Flow		Free Cash Flow
-189.45M	1.67B	2.09B	71.07M	-4.04B
	Operating Cash Flow
-153.51M	1.77B	2.14B	128.59M	-4.02B
	Investing Cash Flow
3.90B	1.15B	-5.63B	1.41B	-2.28B
	Financing Cash Flow
-4.38B	-6.55B	702.11M	82.30M	8.37B

Gemdale Properties & Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0535, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.26, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.86 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0535.

Gemdale Properties & Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
0272	52 Neutral	$5.37B	27.46	0.47%	5.37%	-18.65%	-78.51%
0588	48 Neutral	$5.48B	―	-26.83%	3.06%	-16.81%	8.50%
0119	48 Neutral	$5.46B	27.55	0.53%	0.80%	-3.13%	-87.57%
0173	44 Neutral	$5.74B	17.12	0.81%	6.93%	17.77%	-58.36%
0535	42 Neutral	HK$4.57B	―	-22.73%	0.41%	-23.77%	-1342.92%
3380	33 Underperform	HK$5.00B	―	-29.26%	―	-51.37%	29.94%

Gemdale Properties & Investment Corporate Events

Gemdale Properties Reports Strong Contracted Sales for May 2025

Gemdale Properties & Investment Corporation Limited announced its unaudited operating statistics for May 2025, reporting aggregate contracted sales of approximately RMB 887 million and a contracted sales area of about 69,900 square meters. From January to May 2025, the company’s total contracted sales reached approximately RMB 4,139 million with a sales area of 315,300 square meters. These figures, based on preliminary internal data, highlight the company’s ongoing performance in the real estate market, though investors are cautioned to consider potential discrepancies with future audited reports.

Gemdale Properties Announces Key Agenda for Upcoming AGM

Gemdale Properties & Investment Corporation Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Hong Kong. The meeting will address several key agenda items, including the re-election of directors, the appointment of a new executive director, and the approval of share repurchase and issuance resolutions. These decisions are crucial for the company’s strategic direction and governance, potentially impacting its market operations and shareholder value.

Gemdale Properties Announces Leadership Change

Gemdale Properties and Investment Corporation Limited announced the retirement of Mr. Ling Ke as an executive director, effective after the upcoming annual general meeting on June 25, 2025. Mr. Li Ronghui is proposed to replace him, bringing extensive experience from his roles in various financial and management positions, including his current role as Director, President, and CFO of Gemdale Corporation. This leadership change is expected to reinforce the company’s strategic direction and operational efficiency.

Gemdale Properties Reports Strong Sales Performance for April 2025

Gemdale Properties & Investment Corporation Limited reported unaudited operating statistics for April 2025, revealing aggregate contracted sales of approximately RMB 853 million and a sales area of around 64,100 square meters. The average selling price was RMB 13,300 per square meter. From January to April 2025, the company achieved total contracted sales of approximately RMB 3,252 million over a sales area of 245,400 square meters. This data, based on preliminary internal information, may differ from future audited financial statements, and investors are advised to exercise caution.

Gemdale Properties to Forfeit Unclaimed 2018 Dividends

Gemdale Properties and Investment Corporation Limited announced the forfeiture of unclaimed dividends from 2018, which will revert to the company if not claimed by June 2025. This move underscores the company’s adherence to its bylaws and may impact shareholders who have yet to claim their dividends.

Gemdale Properties Reports Strong March Sales with Cautionary Note

Gemdale Properties and Investment Corporation Limited reported unaudited operating statistics for March 2025, with contracted sales reaching approximately RMB 943 million and a sales area of about 71,200 square meters. The company cautions investors that these preliminary figures may differ from future audited reports due to uncertainties in data collection, advising stakeholders to exercise caution and seek professional advice.