Paliburg Holdings Limited (0617) AI Stock Analysis

• Market Cap: HK$264.16M
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -2.75%
• EPS Growth: -17.31%
• Country: HK
• Employees: 1,750
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.59
• Shares Outstanding: 1,114,585,400
• 10 Day Avg. Volume: 666,387
• 30 Day Avg. Volume: 2,017,426
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.04
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.24 ▼(-5.60% Downside)

Paliburg Holdings Limited's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenue, high leverage, and negative profitability. Technical analysis shows a neutral trend, while valuation metrics are unattractive due to negative earnings and lack of dividends. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Diversified revenue streams

Paliburg's mix of rental income, property sales, hotel operations and infrastructure contracts creates multiple durable cash channels. This diversification reduces reliance on any single segment, smoothing revenue volatility across real estate and hospitality cycles over the next several months.

Reasonable equity base

Despite leverage, a reasonable equity base relative to assets provides a capital buffer that supports creditor confidence and absorbs short-term valuation swings. That balance sheet cushion helps preserve access to financing and underpins operations during cyclical property and hotel slowdowns.

Operational scale

A workforce of 1,750 signals operational scale across development, hospitality and infrastructure activities. Scale supports project execution, centralized functions and cost absorption, helping sustain service levels and delivery capacity which is important for maintaining recurring rental and hotel income.

Negative Factors

Declining revenue trend

Persistently declining revenue erodes operating leverage and constrains reinvestment capacity. For a developer/hotel operator, falling top-line sales and rentals pressure margins and free cash flow, necessitating strategic changes to product mix or cost structure to restore sustainable growth.

High leverage

Significant debt elevates refinancing and interest-rate risk for a capital-intensive real estate and infrastructure business. High leverage limits flexibility to pursue projects, raises fixed finance costs, and increases vulnerability to demand downturns, impairing medium-term financial resilience.

Weak cash generation

Negative and volatile free cash flow signals poor conversion of operating results into spendable cash. That undermines the firm's ability to service debt, fund development projects or maintain hotels without asset disposals or external financing, raising long-term sustainability concerns.

Paliburg Holdings Limited Business Overview & Revenue Model

Company Description

Paliburg Holdings Limited, together with its subsidiaries, engages in the property investment and development, construction and building, and hotel related businesses in Hong Kong, Mainland China, and internationally. The company's Property Development and Investment segment develops, sells, and leases properties; and provides estate agency services. Its Construction and Building Related Businesses segment engages in the construction works and building related businesses, including the provision of development consultancy and project management services, and property management services. This segment also develops and distributes security systems and products, and other software. The company's Hotel Operation and Management and Hotel Ownership segment owns, operates, and rents hotels; and provides hotel management services. Its Asset Management segment provides asset management services to Regal REIT. The company's Financial Assets Investments segment trades in financial assets at fair value through profit or loss; and other financial assets investments. Its Aircraft Ownership and Leasing segment owns, leases, and rents aircraft. The company's Others segment provides financing services, sells food products, operates and manages restaurants, operates security storage lounge, offers housekeeping and related services, and develops and distributes multimedia entertainment and digital educational content and multi-platform social games. The company also offers securities investment, management, financing, nominee, lighting technology, mechanical and electrical engineering, contracting agency, and trademark holding services. The company was incorporated in 1993 and is headquartered in Causeway Bay, Hong Kong. Paliburg Holdings Limited is a subsidiary of Century City International Holdings Limited.

How the Company Makes Money

Paliburg Holdings Limited generates revenue primarily through its property investment and development activities, which include leasing residential and commercial properties, and selling developed properties. The company earns significant income from its hotel operations, providing accommodation and related services to guests. Additionally, revenue is derived from its infrastructure projects, where it engages in construction and project management, often in partnership with other firms or government entities. Key revenue streams include rental income from its investment properties, sales from real estate developments, and operational income from its hotel business. Strategic partnerships with other property developers and stakeholders in the infrastructure sector further contribute to its earnings by enhancing project capabilities and market reach.

Paliburg Holdings Limited Financial Statement Overview

Summary

Paliburg Holdings Limited faces significant financial challenges with declining revenue and profit margins, high leverage, and persistent negative net income and cash flow issues. The company needs strategic improvements in revenue generation, cost control, and leverage management.

Income Statement

The income statement shows declining revenue with a negative growth trajectory over recent years, indicating challenges in revenue generation. The gross profit margin has deteriorated, primarily due to rising costs or reduced sales efficiency. Additionally, persistent negative net income highlights profitability issues. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and potential cost management issues.

Balance Sheet

The balance sheet presents a high debt-to-equity ratio, suggesting significant leverage, which might pose financial risk in downturns. However, the company maintains a reasonable equity base relative to assets, providing some stability. The return on equity is negative, consistent with net losses, indicating shareholders are not receiving returns on their investment.

Cash Flow

The cash flow statement indicates erratic free cash flow patterns, with recent periods showing negative growth. The operating cash flow to net income ratio is unavailable due to negative net income, complicating profitability assessments. Free cash flow to net income is also negative, suggesting that the company struggles to convert profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	2.73B	2.81B	4.00B	4.02B	1.44B
Gross Profit	933.30M	943.70M	1.12B	988.60M	841.40M	-243.20M
EBITDA	187.00M	-376.40M	217.60M	1.09B	606.10M	-225.80M
Net Income	-1.58B	-1.64B	-1.12B	-297.20M	-476.20M	-951.60M
Balance Sheet
Total Assets	35.05B	36.12B	39.82B	41.79B	44.52B	46.79B
Cash, Cash Equivalents and Short-Term Investments	1.01B	745.10M	1.61B	2.38B	3.32B	3.07B
Total Debt	19.52B	19.75B	20.14B	19.70B	20.13B	20.34B
Total Liabilities	22.36B	22.64B	23.69B	25.12B	26.96B	27.85B
Stockholders Equity	9.69B	10.22B	12.00B	11.77B	14.03B	14.84B
Cash Flow
Free Cash Flow	-707.10M	284.00M	563.60M	254.30M	-28.20M	-696.00M
Operating Cash Flow	-674.50M	362.60M	623.90M	324.20M	528.00M	213.30M
Investing Cash Flow	347.70M	548.90M	80.70M	46.70M	70.60M	-565.90M
Financing Cash Flow	-865.90M	-1.62B	-1.31B	-1.31B	-908.20M	-1.07B

Paliburg Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0617, the sentiment is Negative. The current price of 0.25 is above the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.25, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 55.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0617.

Paliburg Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0219	61 Neutral	HK$373.48M	-1.08	-4.72%	―	3.58%	-91.61%
0201	56 Neutral	HK$626.29M	-22.58	-0.66%	―	3.97%	41.51%
0617	49 Neutral	HK$264.16M	-0.16	-19.01%	―	-2.75%	-17.31%
0253	49 Neutral	HK$157.15M	-0.79	-4.69%	―	3.58%	-87.78%
0199	44 Neutral	HK$1.13B	-2.30	-18.98%	―	798.63%	56.55%
0078	40 Neutral	HK$485.34M	-0.27	-29.62%	―	-0.60%	34.74%