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Gemdale Properties & Investment Corp Ltd (HK:0535)
:0535
Hong Kong Market
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Gemdale Properties & Investment (0535) AI Stock Analysis

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HK:0535

Gemdale Properties & Investment

(0535)

Rating:41Neutral
Price Target:
HK$0.50
▲(138.10% Upside)
The overall stock score is primarily driven by significant financial challenges, including deteriorating revenue, profit margins, and cash flow issues. Technical analysis indicates weak momentum, further contributing to the low score. The valuation is also concerning due to a negative P/E ratio, despite a high dividend yield.
Positive Factors
Diverse Revenue Streams
The company's diverse revenue streams, including property sales, leasing, and management services, provide a stable income base, reducing reliance on any single market segment and enhancing resilience against market fluctuations.
Strategic Partnerships
Through strategic partnerships and joint ventures, Gemdale expands its market reach and financial outcomes, leveraging shared expertise and resources to drive growth and innovation in property development.
Industry Presence
Gemdale's established presence in the real estate sector, with a focus on quality and innovation, positions it well to cater to diverse market needs and capitalize on long-term industry growth trends.
Negative Factors
Deteriorating Profit Margins
The significant drop in profit margins indicates decreased efficiency in managing costs, which could impact long-term profitability and competitiveness if not addressed.
High Leverage
Increased leverage raises financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities and manage economic downturns.
Cash Flow Issues
The lack of cash generation from operations suggests liquidity concerns, which could hinder the company's ability to fund operations and investments, impacting long-term sustainability.

Gemdale Properties & Investment (0535) vs. iShares MSCI Hong Kong ETF (EWH)

Gemdale Properties & Investment Business Overview & Revenue Model

Company DescriptionGemdale Properties and Investment Corporation Limited, an investment holding company, engages in the property investment, development, and management activities in Mainland China. The company operates through Property Development, Property Investment and Management, and Micro-Finance segments. It develops and sells residential and commercial properties; undertakes fitting-out works; and invests in and manages business parks and commercial properties, as well as offers financial services to property buyers and small businesses. The company was formerly known as Frasers Property (China) Limited and changed its name to Gemdale Properties and Investment Corporation Limited in March 2013. Gemdale Properties and Investment Corporation Limited is headquartered in Shenzhen, China.
How the Company Makes MoneyGemdale Properties & Investment generates revenue through several key streams. The primary source of income is the sale of residential and commercial properties developed by the company. In addition to sales, Gemdale earns income from property leasing, providing stable rental revenues from its portfolio of commercial and industrial properties. The company also engages in property management services, offering maintenance and operational support that contributes to its revenue. Strategic partnerships and joint ventures enhance Gemdale's project development capabilities, expanding its market reach and financial outcomes. Furthermore, Gemdale invests in real estate-related financial products, providing an additional revenue stream through capital gains and interest income.

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
35
Negative
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
45
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.20B17.45B10.30B14.18B16.88B
Gross Profit2.43B3.61B209.48M930.09M5.54B
EBITDA49.80M3.19B40.89M792.80M5.38B
Net Income-4.57B342.72M2.32B4.01B4.35B
Balance Sheet
Total Assets75.99B91.10B85.99B77.08B64.41B
Cash, Cash Equivalents and Short-Term Investments1.82B2.45B6.05B8.77B7.15B
Total Debt12.13B12.39B7.03B6.19B19.79B
Total Liabilities54.93B64.75B59.01B52.49B43.31B
Stockholders Equity17.70B22.48B22.39B21.74B18.89B
Cash Flow
Free Cash Flow-189.45M1.67B2.09B71.07M-4.04B
Operating Cash Flow-153.51M1.77B2.14B128.59M-4.02B
Investing Cash Flow3.90B1.15B-5.63B1.41B-2.28B
Financing Cash Flow-4.38B-6.55B702.11M82.30M8.37B

Gemdale Properties & Investment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.21
Price Trends
50DMA
0.28
Negative
100DMA
0.28
Negative
200DMA
0.27
Negative
Market Momentum
MACD
-0.02
Positive
RSI
29.24
Positive
STOCH
21.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0535, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.28, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.24 is Positive, neither overbought nor oversold. The STOCH value of 21.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0535.

Gemdale Properties & Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
$1.28B3.12-6.08%5.46%-8.22%-81.31%
41
Neutral
HK$3.54B-18.32%0.51%-10.67%-41.50%
$831.70M-37.02%3.35%
$915.21M19.980.73%3.73%
$744.88M-32.71%
$814.77M284.500.04%1.57%
$792.80M30.360.42%5.41%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0535
Gemdale Properties & Investment
0.21
0.03
16.67%
BEIJF
Beijing North Star Company
0.08
-0.04
-33.33%
KWHAF
K Wah International Holdings
0.24
0.04
20.00%
LPHHF
Logan Property Holdings Co
0.11
0.00
0.00%
PHKIF
Poly Property Group Co
0.17
0.01
6.25%
SOLLF
Shui On Land
0.08
0.03
60.00%

Gemdale Properties & Investment Corporate Events

Gemdale Properties Updates on Director’s Involvement with CSC
Aug 13, 2025

Gemdale Properties and Investment Corporation Limited announced an update regarding Mr. Hui Chiu Chung, an independent non-executive director, who was previously involved with China South City Holdings Limited (CSC). CSC has been ordered to wind up by the High Court of Hong Kong, but this event does not impact Gemdale’s operations or Mr. Hui’s role within the company.

Gemdale Properties to Review Interim Financials in Upcoming Board Meeting
Aug 12, 2025

Gemdale Properties and Investment Corporation Limited has announced a board meeting scheduled for August 22, 2025, to consider and approve the unaudited interim results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market position and stakeholder interests.

Gemdale Properties Reports Strong July 2025 Sales Performance
Aug 6, 2025

Gemdale Properties & Investment Corporation Limited reported unaudited operating statistics for July 2025, with contracted sales reaching approximately RMB 1,280 million and a contracted sales area of about 90,400 square meters. The average selling price was RMB 14,200 per square meter. From January to July 2025, the company’s aggregate contracted sales totaled approximately RMB 6,980 million, covering an area of 542,700 square meters. This data is preliminary and may differ from future audited reports, and investors are advised to exercise caution.

Gemdale Properties’ Subsidiary Provides Significant Loan Guarantee for Joint Venture
Jul 15, 2025

Gemdale Properties and Investment Corporation Limited announced that its wholly-owned subsidiary, VCIC, has entered into a Deed of Guarantee to provide guarantee obligations for the Borrower, Link JV, under a Facility Agreement. This transaction, which involves a guarantee amount of RMB287,500,000, is aimed at refinancing the existing loan facility of the Borrower. The guarantee is considered a discloseable transaction under the Hong Kong Listing Rules, necessitating reporting and announcement requirements. The company’s directors believe the terms are fair and in the best interest of the company and its shareholders.

Gemdale Properties Reports June 2025 Sales Performance
Jul 8, 2025

Gemdale Properties and Investment Corporation Limited reported unaudited operating statistics for June 2025, revealing aggregate contracted sales of approximately RMB 1,561 million and a sales area of 137,000 square meters. The company’s total contracted sales from January to June 2025 reached RMB 5,700 million, covering 452,300 square meters. These figures, based on preliminary internal data, highlight the company’s ongoing real estate activities but are subject to change upon further auditing. Stakeholders are advised to interpret these figures cautiously.

Gemdale Properties Announces AGM Results and Executive Change
Jun 25, 2025

Gemdale Properties & Investment Corporation Limited announced the results of its Annual General Meeting, where all proposed resolutions were passed. Notably, Mr. Ling Ke retired as an executive director, and Mr. Li Ronghui was elected to the position, indicating a change in the company’s executive leadership. This transition may impact the company’s strategic direction and stakeholder relations.

Gemdale Properties Announces Board Composition and Roles
Jun 25, 2025

Gemdale Properties & Investment Corporation Limited has announced the composition of its board of directors and their roles within the company. This update includes the listing of executive, non-executive, and independent non-executive directors, along with their respective roles in the company’s audit, nomination, and remuneration committees. This announcement is significant for stakeholders as it outlines the leadership structure and governance framework, potentially impacting the company’s strategic direction and operational decisions.

Gemdale Properties Announces Relocation of Hong Kong Office
Jun 18, 2025

Gemdale Properties and Investment Corporation Limited has announced a change in its head office and principal place of business in Hong Kong, effective from June 20, 2025. The relocation to Lee Garden Six in Causeway Bay is part of the company’s strategic operational adjustments, although the contact numbers will remain the same.

Gemdale Properties Reports Strong Contracted Sales for May 2025
Jun 4, 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
May 28, 2025

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
May 22, 2025

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.

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: Aug 19, 2025