Hongkong Chinese Limited (0655) AI Stock Analysis

• Market Cap: €639.45M
• Dividend Yield: 3.13%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 1.62%
• EPS Growth: -63.95%
• Country: HK
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.10
• Shares Outstanding: 1,998,280,000
• 10 Day Avg. Volume: 1,228,329
• 30 Day Avg. Volume: 1,256,671
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.46
• Price Target Upside: 34.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(47.06% Upside)

The overall stock score reflects significant financial challenges, including fluctuating revenue and profitability, increasing leverage, and negative cash flows. While technical indicators show moderate bullish momentum, the negative P/E ratio and concerns about the sustainability of the dividend yield weigh heavily on the score.

Hongkong Chinese Limited Business Overview & Revenue Model

Company Description

Hongkong Chinese Limited, an investment holding company, engages in property investment and development, project management, healthcare services, and hotel operations. Its Property Investment segment engages in the letting and resale of properties. The company's Property Development segment develops and sells properties. Its Treasury Investment segment invests in money markets. The company's Securities Investment segment is involved in the investment in securities held for trading. Its Other segment engages in the provision of project management services. The company also owns a motor yacht. It has operations in Hong Kong, Mainland China, Singapore, Indonesia, and internationally. The company was founded in 1992 and is based in Hong Kong, Hong Kong. Hongkong Chinese Limited is a subsidiary of Hennessy Holdings Limited.

How the Company Makes Money

Hongkong Chinese Limited generates revenue through its diverse operations in property development, where it engages in the acquisition, development, and sale of residential and commercial properties. The company also earns income from property investment by leasing out properties to generate rental income. In the hospitality sector, it operates and manages hotels, earning revenue from room bookings, food and beverage sales, and other related services. Additionally, its financial services arm contributes to earnings through activities such as securities trading, asset management, and other financial advisory services. Key revenue streams include property sales, rental income, hotel operations, and financial service fees. The company's earnings are further supported by strategic partnerships and joint ventures that enhance its market presence and operational capabilities.

Hongkong Chinese Limited Financial Statement Overview

Summary

Hongkong Chinese Limited faces significant challenges with fluctuating revenue and profitability. While the balance sheet indicates strong equity, the increasing leverage and negative cash flows highlight potential financial instability. The company needs to address its cash generation capacity and manage its debt levels to improve financial health.

Income Statement

The company has experienced fluctuating revenue with a decline from 2020 to recent years. Despite a strong gross profit margin consistently above 90%, the net profit margin is volatile, with significant losses in certain years. Recent EBIT and EBITDA margins show profitability, but the overall declining revenue and net losses pose risks.

Balance Sheet

The company's balance sheet demonstrates strong equity, with a very high equity ratio indicating financial stability. However, the debt-to-equity ratio has been increasing, suggesting rising leverage which could pose future risks if not managed carefully.

Cash Flow

The cash flow situation appears concerning, with consistent negative free cash flow and operating cash flow over recent years. This indicates potential liquidity issues and challenges in generating cash internally to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.84M	74.79M	71.77M	81.09M	121.03M
Gross Profit	70.61M	71.91M	70.03M	76.75M	67.45M
EBITDA	40.27M	24.80M	508.85M	672.77M	19.08M
Net Income	-1.20B	157.12M	488.77M	670.30M	-1.11B
Balance Sheet
Total Assets	9.55B	11.16B	11.22B	11.57B	11.09B
Cash, Cash Equivalents and Short-Term Investments	97.39M	145.68M	207.68M	132.90M	209.61M
Total Debt	501.47M	465.94M	456.64M	272.81M	275.94M
Total Liabilities	563.30M	529.09M	522.96M	349.42M	401.05M
Stockholders Equity	8.97B	10.61B	10.68B	11.20B	10.67B
Cash Flow
Free Cash Flow	-29.86M	-44.17M	-34.59M	12.72M	-35.23M
Operating Cash Flow	-27.01M	-42.41M	-33.83M	13.26M	-34.77M
Investing Cash Flow	-2.65M	-1.46M	-1.76M	-41.32M	352.26M
Financing Cash Flow	-16.86M	-17.09M	127.35M	-50.26M	-260.24M

Hongkong Chinese Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 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:0655, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.31, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0655.

Hongkong Chinese Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0225	62 Neutral	HK$655.57M	-1.29	-12.92%	6.05%	-4.53%	-22.06%
0089	52 Neutral	HK$581.09M	-1.54	-4.04%	3.96%	-4.31%	19.29%
1036	52 Neutral	HK$631.04M	-5.17	-1.20%	3.70%	178.97%	-2829.91%
0655	51 Neutral	€639.45M	―	-6.19%	3.13%	1.62%	-63.95%
0727	50 Neutral	HK$394.27M	16.82	4.31%	―	-39.27%	―
0367	41 Neutral	HK$585.39M	-0.90	-7.76%	―	-43.81%	29.95%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Hongkong Chinese Limited Corporate Events

Hongkong Chinese Limited Reports Strong Interim Results for H1 2025

Hongkong Chinese Limited reported its unaudited consolidated interim results for the first half of 2025, showing a significant turnaround with a profit of HK$199.65 million compared to a loss of HK$421.97 million in the same period of 2024. The company’s improved performance is attributed to a substantial increase in the share of results from joint ventures, which contributed HK$189.1 million, and a notable net other comprehensive income of HK$572.16 million, reflecting positive exchange differences on foreign operations.

The most recent analyst rating on (HK:0655) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hongkong Chinese Limited stock, see the HK:0655 Stock Forecast page.

Hongkong Chinese Limited Schedules Board Meeting for Interim Results

Hongkong Chinese Limited has announced that its board of directors will meet on August 28, 2025, to approve and publish the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, impacting its market positioning and stakeholder interests.

Hongkong Chinese Limited Announces Positive Profit Turnaround

Hongkong Chinese Limited has issued a positive profit alert, indicating a significant turnaround in its financial performance for the first half of 2025. The company expects a consolidated profit of at least HK$190 million, a stark contrast to the HK$422 million loss recorded in the same period last year. This improvement is largely attributed to a provisional negative goodwill and reduced losses from equity-accounted investees. The announcement suggests a strengthened financial position for the company, potentially impacting its market perception and stakeholder confidence.

Hongkong Chinese Limited Faces S$17.7 Million Damages Ruling

Hongkong Chinese Limited announced that the General Division of the High Court of the Republic of Singapore has awarded damages of approximately S$17.7 million in favor of a bank, related to loans disbursed for purchasing flats in Singapore. The company stated that these damages will not materially affect its asset value, financial position, or results, although the final impact will be determined after an audit.

Hongkong Chinese Limited Secures Shareholder Approval for Key Resolutions at AGM

Hongkong Chinese Limited announced that all proposed resolutions were approved at its Annual General Meeting held on June 23, 2025. The resolutions included the re-election of directors, the authorization of the board to fix directors’ remuneration, the re-appointment of Ernst & Young as auditors, and the granting of mandates to issue and repurchase shares. The approval of these resolutions signifies strong shareholder support and positions the company for continued strategic governance and financial management.