Kerry Properties (0683) AI Stock Analysis

• Market Cap: $26.76B
• Dividend Yield: 10.3%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.84
• Revenue Growth: 50.11%
• EPS Growth: -75.09%
• Country: HK
• Employees: 7,500
• Sector: Real Estate
• Sector Strength: 73
• Industry: Real Estate - Development
• EPS (TTM): 0.27
• Shares Outstanding: 1,451,305,800
• 10 Day Avg. Volume: 1,811,242
• 30 Day Avg. Volume: 1,917,494
• PEG Ratio: -0.12
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.06
• 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: $20.57
• Price Target Upside: 9.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: ―

Kerry Properties exhibits strong revenue growth but is challenged by declining profitability and negative cash flows. Although the balance sheet shows moderate leverage, cash flow issues need addressing. The technical analysis indicates bearish momentum, and the valuation suggests overvaluation despite a high dividend yield. Overall, these factors result in a moderate stock score.

Positive Factors

Earnings Growth

FY24 underlying profit grew 25% y/y, indicating strong financial performance.

Financial Strategy

A reduction in gearing, resulting from cash inflows from luxury residences sales, will strengthen the company's financial standing and ability to pay dividends.

Sales Performance

Overwhelming response to launch of Jinling Residences in Shanghai with first batch of 158 units sold out within three hours.

Negative Factors

Market Demand Risk

Any deterioration in property demand in Hong Kong & China could drag its earnings and share price performance.

Regional Demand Risk

Any deterioration in property demand in Hong Kong & China could drag earnings and share price performance.

Kerry Properties Business Overview & Revenue Model

Company Description

Kerry Properties Limited, an investment holding company, engages in the development, investment, management, and trading of properties in Hong Kong, Mainland China, and the Asia Pacific region. The company also owns and operates hotels; and offers logistics and international freight forwarding, consultancy, administrative support, project management, financial, IT system and consultancy, estate agency, and construction services. In addition, it is involved in the warehouse operations, as well as operation of restaurants, recreation parks, and ice rinks. The company was founded in 1978 and is headquartered in Quarry Bay, Hong Kong. Kerry Properties Limited is a subsidiary of Kerry Group Limited.

How the Company Makes Money

Kerry Properties makes money primarily through its property development and investment activities. The company's key revenue streams include the sale of residential and commercial properties, rental income from its investment properties, and management fees from property management services. Additionally, Kerry Properties benefits from strategic partnerships and joint ventures, which enable the company to expand its market reach and leverage local expertise. The company also invests in urban mixed-use developments, which integrate residential, commercial, and retail components, allowing for diversified revenue generation. Factors such as property market conditions, economic trends, and government policies in the regions where Kerry Properties operates significantly influence its earnings.

Kerry Properties Financial Statement Overview

Summary

Kerry Properties showed strong revenue growth of 49% in 2024, but faced declining profitability with a gross profit margin drop from 51.35% to 32.74% and a net profit margin from 24.77% to 4.14%. The balance sheet remains stable with moderate leverage, but cash flow management is a concern as operating cash flow turned negative.

Income Statement

Kerry Properties experienced significant fluctuations in revenue and margins. The gross profit margin decreased to 32.74% in 2024 from 51.35% in 2023, and the net profit margin fell to 4.14% from 24.77%. However, revenue grew by 49% in 2024, indicating strong growth potential, despite a decline in profitability.

Balance Sheet

The company's debt-to-equity ratio was 0.60 in 2024, suggesting moderate leverage. The equity ratio remained stable at 51.31%, reflecting solid asset backing. Return on equity dropped to 0.78% from 3.02%, indicating lower returns on shareholders' investments.

Cash Flow

Operating cash flow turned negative in 2024, indicating cash management challenges. The free cash flow growth rate is not calculable due to unavailable data, showing potential weaknesses in cash generation and investment strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.50B	13.09B	14.75B	15.45B	14.65B
	Gross Profit
6.39B	6.72B	7.14B	8.87B	8.51B
	EBIT
1.67B	5.50B	4.90B	6.87B	6.89B
	EBITDA
4.64B	8.13B	5.39B	7.39B	7.37B
	Net Income Common Stockholders
808.00M	3.24B	2.75B	10.36B	5.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.98B	13.54B	11.70B	17.43B	17.00B
	Total Assets
201.35B	208.43B	201.47B	200.06B	195.77B
	Total Debt
59.62B	55.22B	54.99B	37.85B	45.28B
	Net Debt
48.64B	41.68B	43.31B	20.46B	28.84B
	Total Liabilities
84.70B	87.28B	78.99B	67.74B	71.11B
	Stockholders Equity
103.31B	107.26B	108.79B	116.83B	109.87B
Cash Flow		Free Cash Flow
0.00	-5.34M	-23.36B	11.23B	1.38B
	Operating Cash Flow
0.00	4.98B	1.33B	11.93B	6.99B
	Investing Cash Flow
0.00	-2.45B	-19.32B	1.74B	-5.29B
	Financing Cash Flow
0.00	-47.18M	13.55B	-13.13B	1.91B

Kerry Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0683, the sentiment is Positive. The current price of 18.8 is above the 20-day moving average (MA) of 18.74, above the 50-day MA of 18.02, and above the 200-day MA of 15.87, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 36.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0683.

Kerry Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
0683	52 Neutral	$26.76B	33.12	0.76%	10.30%	50.11%	-75.09%
GTWCF		$3.00B	13.17	4.39%	6.08%	―	―
SNCNQ		$1.91B	―	-49.73%	―	―	―
1908	74 Outperform	HK$32.80B	5.59	20.50%	7.38%	5.92%	-12.18%
1030	59 Neutral	HK$15.56B	30.46	1.07%	―	-26.43%	―
0817	57 Neutral	HK$14.86B	19.54	1.81%	2.73%	-19.50%	―

Kerry Properties Corporate Events

Kerry Properties Announces 2025 AGM and Key Resolutions

Kerry Properties Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 23, 2025, in Hong Kong. The meeting will address several key resolutions including the adoption of audited financial statements, declaration of a final dividend for 2024, re-election of directors, and re-appointment of auditors. Additionally, the meeting will consider granting the board authority to issue new shares and securities, which could impact the company’s capital structure and shareholder value.

Kerry Properties Proposes Bye-law Amendments for Enhanced Flexibility

Kerry Properties Limited has announced proposed amendments to its existing bye-laws, aiming to align with recent changes in the Hong Kong Stock Exchange’s Listing Rules. These amendments will allow the company to acquire shares as treasury shares and facilitate electronic corporate communications. The changes are subject to shareholder approval at the upcoming annual general meeting in May 2025.

Kerry Properties Reports 18% Revenue Growth Amid Challenging Market

Kerry Properties announced its final results for the year ended December 31, 2024, reporting a combined revenue increase of 18% year-on-year, driven by higher sales recognition for development properties. Despite a challenging property market environment in Hong Kong and Mainland China, the company achieved encouraging operational performance, particularly in Hong Kong, where development properties sold well. The company maintained its dividend per share and reported an underlying profit increase of 25%, although profit attributable to shareholders saw a significant decline due to one-off provisions.

Kerry Properties Declares Final Dividend for 2024

Kerry Properties Limited announced a final cash dividend of HKD 0.95 per share for the year ending December 31, 2024, with payment scheduled for June 10, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors.

Kerry Properties Schedules Board Meeting for Financial Results and Dividend Decision

Kerry Properties Limited has announced that its board of directors will meet on March 19, 2025, to approve the company’s final financial results for the year ending December 31, 2024, and to consider the payment of a final 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.