Kerry Properties (0683) AI Stock Analysis

• Market Cap: HK$29.32B
• Dividend Yield: 6.48%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 0.79
• Revenue Growth: 76.12%
• EPS Growth: -72.44%
• Country: HK
• Employees: 7,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.67
• Shares Outstanding: 1,451,305,800
• 10 Day Avg. Volume: 1,046,717
• 30 Day Avg. Volume: 1,596,205
• PEG Ratio: -0.37
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -5.72
• 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: HK$26.40
• Price Target Upside: 30.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$20.50 ▲(1.49% Upside)

Kerry Properties faces challenges with declining profitability and negative cash flow, which weigh heavily on its financial performance score. Technical indicators suggest weak market momentum, further impacting the overall score. Despite these issues, the stock's attractive dividend yield provides some support, balancing the high P/E ratio.

Positive Factors

Revenue Growth

The significant revenue growth demonstrates Kerry Properties' ability to expand its market presence and capitalize on high-demand sectors, which is crucial for long-term business sustainability.

Market Position

Focusing on high-demand markets allows Kerry Properties to leverage its brand strength and command premium pricing, supporting sustained revenue streams and competitive positioning.

Balance Sheet Health

A stable balance sheet with moderate leverage provides Kerry Properties with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Profitability Decline

The decline in profitability margins indicates potential challenges in cost management and pricing power, which could affect long-term earnings stability.

Cash Flow Challenges

Negative operating cash flow highlights issues in cash management and operational efficiency, potentially impacting the company's ability to fund growth and meet obligations.

Return on Equity Decline

A declining return on equity suggests reduced efficiency in generating returns from shareholders' investments, which could deter future investment and impact growth prospects.

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 generates revenue primarily through the sale and leasing of its developed properties. The company's revenue model is built on two main streams: property sales, which contributes significantly to its income, and rental income from its investment portfolio. The company also engages in joint ventures and partnerships with other firms, which can provide additional revenue opportunities and share development costs. Furthermore, the strength of Kerry Properties' brand and its strategic focus on high-demand markets in China and Hong Kong enhance its ability to command premium prices and attract tenants, thereby contributing to its overall earnings.

Kerry Properties Financial Statement Overview

Summary

Kerry Properties has shown mixed financial performance with strong revenue growth but declining profitability and cash flow challenges. The balance sheet remains relatively stable with moderate leverage. The company needs to address profitability issues and improve cash flow management to enhance financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.52B	19.50B	13.09B	14.59B	15.33B	14.53B
Gross Profit	6.57B	6.39B	6.72B	6.98B	8.74B	8.39B
EBITDA	5.09B	4.64B	8.13B	5.95B	7.39B	7.37B
Net Income	631.96M	808.00M	3.24B	2.75B	10.36B	5.40B
Balance Sheet
Total Assets	208.60B	201.35B	208.43B	201.47B	200.06B	195.77B
Cash, Cash Equivalents and Short-Term Investments	12.64B	10.98B	13.54B	11.70B	18.30B	17.55B
Total Debt	59.64B	59.62B	55.22B	55.84B	37.85B	45.28B
Total Liabilities	90.43B	84.70B	87.28B	78.99B	67.74B	71.11B
Stockholders Equity	104.26B	103.31B	107.26B	108.79B	116.83B	109.87B
Cash Flow
Free Cash Flow	9.38B	-3.94B	-5.34M	-23.36B	11.23B	1.38B
Operating Cash Flow	9.63B	1.17B	4.98B	1.33B	11.93B	5.95B
Investing Cash Flow	-5.18B	-5.40B	-2.45B	-17.14B	8.30B	-4.18B
Financing Cash Flow	-4.27B	2.09B	-47.18M	13.55B	-13.58B	1.82B

Kerry Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.20
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 20.2 is below the 20-day moving average (MA) of 20.31, below the 50-day MA of 20.50, and above the 200-day MA of 19.55, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0683.

Kerry Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1908	72 Outperform	HK$35.46B	5.44	20.21%	7.62%	1.26%	-0.20%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3900	53 Neutral	HK$22.60B	-86.32	-0.67%	3.94%	-1.08%	-109.20%
0683	52 Neutral	HK$29.32B	46.39	0.61%	6.48%	76.12%	-72.44%
1030	46 Neutral	HK$15.42B	65.57	0.46%	―	-30.32%	―
0817	46 Neutral	HK$17.84B	34.55	1.20%	2.46%	-8.18%	―

Kerry Properties Corporate Events

Kerry Properties Renews Tenancy at Kerry Centre

Kerry Properties has announced the renewal of its tenancy agreement for its corporate offices at Kerry Centre in Hong Kong. The two-year lease, commencing on November 19, 2025, involves a monthly rent of approximately HK$2,322,000 and additional variable payments. This renewal, considered a connected transaction under Hong Kong’s Listing Rules, reflects the company’s strategic decision to maintain its corporate presence in a prime location, ensuring continuity in its operations. The agreement terms are deemed fair and in the interest of the company and its shareholders.

The most recent analyst rating on (HK:0683) stock is a Hold with a HK$20.50 price target. To see the full list of analyst forecasts on Kerry Properties stock, see the HK:0683 Stock Forecast page.

Kerry Properties Announces Connected Transaction for Shanghai Residential Unit

Kerry Properties, through its wholly-owned subsidiary, has entered into an agreement to sell a property unit in Jinling Residences, a residential project in Shanghai, to its Chairman, CEO, and Executive Director for RMB116,838,258. This transaction is classified as a connected transaction under Hong Kong’s Listing Rules due to the involvement of a connected person, but it is exempt from shareholders’ approval requirements. The sale is part of the company’s ordinary business operations and aligns with the pre-sale price list approved by the relevant government authority.

The most recent analyst rating on (HK:0683) stock is a Hold with a HK$20.50 price target. To see the full list of analyst forecasts on Kerry Properties stock, see the HK:0683 Stock Forecast page.