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Fortune Real Estate Investment (HK:0778)
:0778
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Fortune Real Estate Investment (0778) AI Stock Analysis

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HK:0778

Fortune Real Estate Investment

(OTC:0778)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
HK$5.00
▼(-1.57% Downside)
The overall stock score is influenced primarily by the company's operational efficiency and strong technical indicators, which suggest positive market sentiment. However, the negative P/E ratio and profitability challenges weigh down the score. The high dividend yield offers some compensation for these risks.
Positive Factors
Negative Factors

Fortune Real Estate Investment (0778) vs. iShares MSCI Hong Kong ETF (EWH)

Fortune Real Estate Investment Business Overview & Revenue Model

Company DescriptionFortune Real Estate Investment (0778) is a prominent real estate investment company primarily engaged in the acquisition, development, and management of a diverse portfolio of commercial and residential properties. The company focuses on strategic investments in high-growth urban areas, aiming to deliver long-term value to its stakeholders through the appreciation of property values and rental income. Fortune Real Estate Investment is recognized for its expertise in navigating complex real estate markets and its commitment to sustainable and innovative property solutions.
How the Company Makes MoneyFortune Real Estate Investment makes money through a variety of revenue streams, primarily driven by rental income from its portfolio of commercial and residential properties. The company also benefits from property appreciation, which contributes to capital gains upon the sale of assets. Additionally, the firm may engage in property development projects, generating revenue through the sale of newly developed units. Strategic partnerships with other real estate developers and financial institutions further enhance its revenue-generating capabilities, enabling Fortune Real Estate Investment to leverage market opportunities and optimize returns on its investments.

Fortune Real Estate Investment Financial Statement Overview

Summary
Fortune Real Estate Investment shows operational efficiency with strong gross and EBIT margins, but faces challenges in profitability with consistent net losses impacting overall financial health. The balance sheet is robust with moderate leverage, but negative returns on equity highlight profitability issues. Cash flows remain positive, providing some stability, but the inconsistency in growth and negative net income are areas of concern.
Income Statement
45
Neutral
The company has experienced a decline in revenue over recent years, with a negative net profit margin due to significant net losses in the latest period. The gross profit margin remains strong at approximately 66%, but the net income has been negative for the past two years, indicating challenges in profitability. EBIT and EBITDA margins are relatively high, suggesting operational efficiency, but the bottom line is impacted by other expenses.
Balance Sheet
60
Neutral
The balance sheet shows a solid equity base with a debt-to-equity ratio of approximately 0.36, indicating moderate leverage. The equity ratio is around 70%, reflecting a strong capital structure. However, the return on equity is negative due to net losses, which is a concern for shareholders.
Cash Flow
55
Neutral
The company maintains positive operating and free cash flows, which is a positive sign of liquidity and operational strength. However, the free cash flow growth rate has been inconsistent, and the operating cash flow to net income ratio is skewed due to negative net income, indicating potential volatility in cash generation relative to earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.75B1.79B1.76B1.81B1.84B
Gross Profit1.15B1.17B1.17B1.21B1.24B
EBITDA1.14B1.16B998.71M1.55B-2.58B
Net Income-518.98M-154.92M502.64M1.32B-3.19B
Balance Sheet
Total Assets38.46B39.51B40.34B39.72B39.34B
Cash, Cash Equivalents and Short-Term Investments96.65M106.72M206.86M117.96M177.17M
Total Debt9.81B9.66B9.58B8.84B8.76B
Total Liabilities11.53B11.43B11.41B10.54B10.70B
Stockholders Equity26.93B28.08B28.93B29.18B28.63B
Cash Flow
Free Cash Flow1.03B1.05B1.00B1.02B925.08M
Operating Cash Flow1.03B1.16B1.17B1.09B980.00M
Investing Cash Flow-84.68M-113.09M-672.93M-66.97M-54.76M
Financing Cash Flow-957.16M-1.15B-409.93M-1.08B-884.45M

Fortune Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.08
Price Trends
50DMA
4.96
Positive
100DMA
4.73
Positive
200DMA
4.29
Positive
Market Momentum
MACD
0.06
Positive
RSI
50.97
Neutral
STOCH
15.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0778, the sentiment is Positive. The current price of 5.08 is above the 20-day moving average (MA) of 5.07, above the 50-day MA of 4.96, and above the 200-day MA of 4.29, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 15.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0778.

Fortune Real Estate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.41B-4.25%7.07%-4.20%-138.86%
54
Neutral
HK$6.28B7.074.68%590.98%538.64%
52
Neutral
HK$12.70B-4.80-4.79%6.35%-6.99%-176.18%
52
Neutral
HK$12.82B-4.770.13%-11.68%-3002.05%
50
Neutral
HK$10.17B-5.63-3.21%6.69%1.37%-157.43%
44
Neutral
HK$6.56B22.223.37%66.68%-38.14%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0778
Fortune Real Estate Investment
5.08
0.86
20.35%
HK:2778
Champion Real Estate Investment
2.09
0.12
6.36%
HK:0041
Great Eagle Holdings
14.27
2.49
21.19%
HK:0173
K Wah International Holdings
2.12
0.17
8.83%
HK:0754
Hopson Development Holdings Limited
3.39
-2.79
-45.15%
HK:0258
Tomson Group Limited
2.80
0.46
19.66%
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.Date of analysis: Jul 28, 2025