Planetree International Development Limited (0613) AI Stock Analysis

• Market Cap: HK$1.73B
• Dividend Yield: N/A
• Average Volume (3M): 620.73K
• Price to Earnings (P/E): 1636.4
• Beta (1Y): 0.19
• Revenue Growth: -27.12%
• EPS Growth: N/A
• Country: HK
• Employees: 33
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 0.11
• Shares Outstanding: 960,527,650
• 10 Day Avg. Volume: 393,980
• 30 Day Avg. Volume: 620,726
• PEG Ratio: -0.03
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 222.95
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$1.50 ▼(-16.67% Downside)

The overall stock score is primarily influenced by financial performance challenges, including negative profitability and cash flow volatility. Technical analysis indicates bearish momentum, and the valuation is concerning due to an extremely high P/E ratio. These factors collectively suggest caution for potential investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single income source, enhancing stability and allowing the company to capitalize on various market opportunities.

Property Investment Income

Rental income from property investments provides a steady cash flow, contributing to financial stability and supporting long-term strategic initiatives.

Negative Factors

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and challenges in cost management, which can hinder long-term profitability and growth potential.

Revenue Decline

A significant decline in revenue suggests challenges in maintaining market share and competitiveness, which may impact future growth and financial performance.

Cash Flow Volatility

Volatile cash flow indicates difficulties in managing operational cash, which can affect the company's ability to fund operations and invest in growth sustainably.

Planetree International Development Limited Business Overview & Revenue Model

Company Description

Planetree International Development Limited, an investment holding company, provides various financial services in Hong Kong. It operates through Financial Services, Credit and Lending Services, Other Financial Services, Property Investment and Leasing, and Tactical and Strategic Investment segments. The Financial Services segment deals in securities and futures contracts; and offers corporate finance and asset management advisory, and margin financing services. The Credit and Lending Services segment provides money lending services. The Other Financial Services segment offers corporate advisory related services. The Property Investment and Leasing segment engages in properties leasing activities. The Tactical and Strategic Investment segment trades in and holds debt and equity securities. It also provides securities brokerage and investment services. The company was formerly known as Yugang International Limited and changed its name to Planetree International Development Limited in July 2019. Planetree International Development Limited was incorporated in 1993 and is headquartered in North Point, Hong Kong.

How the Company Makes Money

The company generates revenue through a combination of investment returns, management fees, and strategic partnerships. Key revenue streams include dividends and capital appreciation from its equity investments in various sectors, rental income from real estate holdings, and fees from managing investment funds. Significant partnerships with local and international firms enhance its market reach and provide access to high-potential investment opportunities, contributing to its overall earnings.

Planetree International Development Limited Financial Statement Overview

Summary

Planetree International Development Limited faces significant challenges with profitability, as indicated by negative net income and margins. While the balance sheet is strong with low leverage, the company struggles with cash flow volatility and operational efficiency. Continued focus on improving revenue and managing costs is essential for future stability.

Income Statement

The company has experienced fluctuating revenues with a significant decline in 2024. Gross profit margins have been relatively strong, but the net profit margin is negative due to substantial net losses. EBIT and EBITDA margins have also been negative in recent years, indicating operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with a relatively low debt-to-equity ratio, indicating financial stability. However, the return on equity is negative due to consistent net losses. The equity ratio remains healthy, suggesting a solid asset base.

Cash Flow

Cash flow from operations has been volatile, with significant negative figures in some years. Free cash flow has shown improvement recently but remains inconsistent. The operating cash flow to net income ratio is weak, reflecting challenges in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.77M	81.92M	113.39M	156.79M	195.32M	100.19M
Gross Profit	91.78M	46.28M	112.24M	143.26M	130.06M	88.20M
EBITDA	32.79M	-13.27M	57.01M	118.06M	67.61M	-3.69M
Net Income	1.02M	-197.69M	-140.15M	-17.17M	-22.15M	41.76M
Balance Sheet
Total Assets	2.05B	1.87B	2.18B	2.41B	2.25B	2.31B
Cash, Cash Equivalents and Short-Term Investments	184.91M	100.19M	103.35M	373.80M	557.01M	278.50M
Total Debt	225.51M	237.77M	243.00M	263.46M	273.16M	281.44M
Total Liabilities	290.68M	269.42M	277.33M	292.50M	309.59M	465.39M
Stockholders Equity	1.49B	1.32B	1.62B	1.74B	1.75B	1.77B
Cash Flow
Free Cash Flow	115.83M	1.02M	138.64M	-452.36M	4.66M	-517.38M
Operating Cash Flow	115.95M	1.09M	140.23M	-452.16M	4.91M	-469.62M
Investing Cash Flow	-27.81M	33.57M	-246.76M	103.33M	95.49M	379.20M
Financing Cash Flow	-38.37M	-33.88M	-84.27M	147.07M	80.09M	108.74M

Planetree International Development Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 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:0613, the sentiment is Negative. The current price of 1.8 is below the 20-day moving average (MA) of 1.82, below the 50-day MA of 1.89, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0613.

Planetree International Development Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6058	64 Neutral	HK$1.90B	25.00	2.32%	2.11%	20.05%	16.56%
8029	52 Neutral	HK$347.30M	-8.50	―	―	-20.98%	-7.44%
0279	46 Neutral	HK$801.69M	-15.29	-499.08%	―	191.15%	-1.98%
0613	45 Neutral	HK$1.73B	1,636.36	>-0.01%	―	-27.12%	―
3623	45 Neutral	HK$681.12M	-18.12	-9.25%	―	-66.98%	-115.16%
3329	31 Underperform	HK$984.38M	-0.85	-99.49%	―	22.37%	20.18%

Planetree International Development Limited Corporate Events

Planetree International Disposes of Hao Tian Shares Amid Market Concerns

Planetree International Development Limited announced the disposal of listed securities by its subsidiary, Planetree (BVI) Capital Limited, due to concerns over the declining share price of Hao Tian International Construction Investment Group Limited. Despite the disposal, Hao Tian retains a significant shareholding and influence over PCL, maintaining a strategic alliance that supports aligned interests, resource sharing, and potential growth opportunities.

Planetree Extends Share Swap Agreement Deadline with Oshidori

Planetree International Development Limited announced an extension of the long stop date for its share swap agreement with Oshidori International Holdings Limited. The new deadline is set for 17 December 2025, with all other terms of the agreement remaining unchanged. This extension allows both parties additional time to fulfill necessary conditions, potentially impacting the company’s strategic positioning and stakeholder interests.

Planetree Sells Major Stake in Listed Company for HK$238.7 Million

Planetree International Development Limited has announced the disposal of 1,600,000,000 shares in a listed company, representing approximately 14.75% of the company’s total issued share capital, for HK$238.7 million. The transaction is considered a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement due to the aggregate percentage ratios involved. The disposal marks a significant divestment for Planetree, potentially impacting its investment strategy and financial position.

Planetree and Oshidori Enter Share Swap Agreement

Planetree International Development Limited has entered into a share swap agreement with Oshidori, where Planetree will acquire approximately 12.30% of Oshidori’s issued share capital, and Oshidori will acquire approximately 19.69% of Planetree’s issued share capital. This transaction, valued at HK$375,563,592.51 for each party, will result in Planetree holding 15.54% of Oshidori’s enlarged share capital and Oshidori holding 17.56% of Planetree’s enlarged share capital. The agreement is considered a discloseable transaction under the Listing Rules, and its completion is contingent upon certain conditions being met, which may impact the companies’ market positions and shareholder interests.

Planetree International Fosters Growth through Strategic Cross-Ownership

Planetree International Development Limited announced a strategic move involving the issuance of new shares by a subsidiary in exchange for shares from a subscriber. This transaction is aimed at creating value through cross-ownership, which aligns interests, facilitates resource sharing, and enhances strategic alliances between the companies. The cross holdings are expected to lead to cost savings, innovation, and growth by leveraging complementary licenses and expertise in areas such as AI supercomputing and financial services. This initiative positions both companies to better compete in the market and mitigate risks through diversified investments.

Planetree International Announces Share Exchange Transaction

Planetree International Development Limited, through its indirect wholly-owned subsidiary PCL, has entered into a Subscription Agreement with a Subscriber to issue 850 new shares of PCL in exchange for 1,600,000,000 shares of the Subscriber. This transaction, valued at HK$400,000,000, will reduce Planetree’s interest in PCL from 100% to approximately 70.2%, while making Planetree a substantial shareholder in the Subscriber with a 14.8% stake. The transaction is classified as a discloseable transaction under the Listing Rules, requiring reporting and announcement due to the change in ownership percentages.