Fortune Real Estate Investment (HK:0778)
:0778
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Fortune Real Estate Investment
(0778)
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Rating:54Neutral
Price Target:
HK$5.00
▲(3.95% Upside)
Action:ReiteratedDate:04/28/26
The score is held back primarily by materially weakened profitability and a deteriorating balance-sheet trend (declining equity/assets and modestly rising leverage), despite stable revenue and strong margins. Consistently positive operating/free cash flow and a high dividend yield provide support, while technicals are broadly neutral with slightly soft momentum.
Positive Factors
Consistent Cash Generation
Consistently positive operating and free cash flow shows the portfolio generates durable cash despite accounting losses. That recurring cash supports distributions, funds maintenance/AEIs and interest costs, and provides liquidity buffer that underpins the REIT's operating stability over months.
Negative Factors
Deteriorating Profitability
A multi-year swing into net losses, culminating in a very large 2025 loss, undermines retained earnings and reduces capacity to self-fund capital work. Persistent accounting losses can signal impairments, weaken distributable income over time, and constrain strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Consistently positive operating and free cash flow shows the portfolio generates durable cash despite accounting losses. That recurring cash supports distributions, funds maintenance/AEIs and interest costs, and provides liquidity buffer that underpins the REIT's operating stability over months.
Read all positive factors
Fortune Real Estate Investment (0778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.02B
Dividend Yield7.24%
Average Volume (3M)2.89M
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-8.11%
EPS Growth-120.71%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.57
Shares Outstanding2,061,863,800
10 Day Avg. Volume2,089,248
30 Day Avg. Volume2,889,869
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.40
Price to Sales (P/S)5.70
P/FCF Ratio14.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.62Price Target Upside16.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)HK$1.68B
Fortune Real Estate Investment Business Overview & Revenue Model
Company Description
Established in 2003, Fortune REIT is a real estate investment trust constituted by a trust deed (as amended, supplemented or otherwise modified from time to time). It is the first REIT to hold assets in Hong Kong and is currently listed on the Mai...
How the Company Makes Money
Fortune REIT primarily makes money by renting retail space in its properties to tenants under lease agreements. Its key revenue stream is rental income, which typically includes (i) fixed/base rent paid by tenants for occupying shop space and (ii)...
Fortune Real Estate Investment Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.75B | 1.79B | 1.76B | 1.81B |
| Gross Profit | 1.14B | 1.15B | 1.20B | 1.17B | 1.21B |
| EBITDA | -622.08M | 1.14B | 1.16B | 1.17B | 1.22B |
| Net Income | -1.16B | -518.98M | -154.92M | 502.64M | 1.32B |
Balance Sheet | |||||
| Total Assets | 36.75B | 38.46B | 39.51B | 40.34B | 39.72B |
| Cash, Cash Equivalents and Short-Term Investments | 65.74M | 96.65M | 106.72M | 206.86M | 117.96M |
| Total Debt | 9.86B | 9.81B | 9.66B | 9.58B | 8.84B |
| Total Liabilities | 11.61B | 11.53B | 11.43B | 11.41B | 10.54B |
| Stockholders Equity | 25.14B | 26.93B | 28.08B | 28.93B | 29.18B |
Cash Flow | |||||
| Free Cash Flow | 703.06M | 1.03B | 1.05B | 1.17B | 1.02B |
| Operating Cash Flow | 741.15M | 1.03B | 1.16B | 1.17B | 1.09B |
| Investing Cash Flow | -38.08M | -84.68M | -113.09M | -672.93M | -66.97M |
| Financing Cash Flow | -733.97M | -957.16M | -1.15B | -409.93M | -1.08B |
Fortune Real Estate Investment Technical Analysis
Negative
4.81
Price Trends
4.93
Negative
4.86
Negative
4.83
Negative
Market Momentum
-0.03
Negative
47.79
Neutral
60.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0778, the sentiment is Negative. The current price of 4.81 is above the 20-day moving average (MA) of 4.78, below the 50-day MA of 4.93, and below the 200-day MA of 4.83, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 60.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0778.
Fortune Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | HK$10.01B | -1.82 | -2.88% | ― | -11.68% | -3002.05% | |
61 Neutral | HK$5.35B | 6.75 | 6.10% | 5.22% | 477.74% | 332.86% | |
59 Neutral | HK$13.31B | -6.82 | -3.14% | 5.93% | 80.71% | 4.60% | |
54 Neutral | HK$10.02B | -8.66 | -4.53% | 7.24% | -8.11% | -120.71% | |
50 Neutral | HK$14.34B | -4.78 | -8.06% | 5.43% | -8.97% | -55.10% | |
46 Neutral | HK$7.19B | -7.62 | 0.73% | 3.32% | -72.38% | -358.63% |
* Real Estate Sector Average
HK:0778
Fortune Real Estate Investment
4.90
0.90
22.41%
HK:2778
Champion Real Estate Investment
2.40
0.09
4.08%
HK:0041
Great Eagle Holdings
18.05
5.75
46.76%
HK:0173
K Wah International Holdings
2.30
0.60
35.53%
HK:0754
Hopson Development Holdings Limited
2.64
-0.31
-10.54%
HK:0258
Tomson Group Limited
2.39
-0.34
-12.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.