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Fortune Real Estate Investment Trust (HK:0778)
:0778
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Fortune Real Estate Investment
(OTC:0778)
Rating:61Neutral
Price Target:
HK$5.00
▼(-0.99%Downside)
Positive Factors
Distribution Yields
Fortune REIT offers distribution yields of 7.5-7.6% for FY25-26, which is appealing compared to its 10-year average.
Interest Costs
Lower HIBOR should lead to interest cost savings, more than offsetting the shortfall in rental earnings.
Population Growth
Population growth serves as a long-term growth driver, supporting future reversionary growth.
Negative Factors
Distributable Income
FY24 distributable income fell 11% y/y to HKD723mn on lower rental earnings and higher cash finance cost.
Rental Reversions
Portfolio reversionary growth is expected to remain negative, dragged by negative rental reversions from supermarket and real estate tenants.
Fortune Real Estate Investment (0778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.16B
Dividend Yield7.05%
Average Volume (3M)3.28M
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-2.76%
EPS Growth-238.04%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength56
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.24
Shares Outstanding2,048,404,000
10 Day Avg. Volume4,060,068
30 Day Avg. Volume3,280,375
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)0.37
Price to Sales (P/S)0.00
P/FCF Ratio19.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.81Price Target Upside15.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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
The company faces financial challenges with declining revenues and consistent net losses, which are offset slightly by strong operating cash flow management. However, increasing debt and negative net profit margins are significant concerns.Income Statement
The company has experienced a decline in revenue over recent years with a negative net profit margin, indicating financial strain. Gross profit margin remains relatively stable, but consistent net losses are concerning.40
Negative
Balance Sheet
The company maintains a reasonable debt-to-equity ratio, suggesting manageable leverage. However, declining stockholders' equity and increasing total debt might pose risks if trends continue.55
Neutral
Cash Flow
Operating cash flow remains strong compared to net income, indicating good cash management despite the net losses. However, the lack of free cash flow growth is a concern.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.75B | 1.79B | 1.76B | 1.81B | 1.84B |
| Gross Profit | 1.15B | 1.17B | 1.17B | 1.21B | 1.24B |
| EBITDA | 1.14B | 1.16B | 998.71M | 1.55B | -2.58B |
| Net Income | -518.98M | -154.92M | 502.64M | 1.32B | -3.19B |
Balance Sheet | |||||
| Total Assets | 38.46B | 39.51B | 40.34B | 39.72B | 39.34B |
| Cash, Cash Equivalents and Short-Term Investments | 96.65M | 106.72M | 206.86M | 117.96M | 177.17M |
| Total Debt | 9.81B | 9.66B | 9.58B | 8.84B | 8.76B |
| Total Liabilities | 11.53B | 11.43B | 11.41B | 10.54B | 10.70B |
| Stockholders Equity | 26.93B | 28.08B | 28.93B | 29.18B | 28.63B |
Cash Flow | |||||
| Free Cash Flow | 1.03B | 1.05B | 1.00B | 1.02B | 925.08M |
| Operating Cash Flow | 1.03B | 1.16B | 1.17B | 1.09B | 980.00M |
| 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
Positive
5.05
Price Trends
4.72
Positive
4.44
Positive
4.18
Positive
Market Momentum
0.06
Positive
65.97
Neutral
53.55
Neutral
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 5.05 is above the 20-day moving average (MA) of 4.91, above the 50-day MA of 4.72, and above the 200-day MA of 4.18, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 53.55 is Neutral, 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | HK$10.16B | ― | -1.89% | 7.05% | -2.76% | -238.04% | |
59 Neutral | $11.01B | ― | -3.12% | 5.91% | 2.20% | -327.14% | |
54 Neutral | HK$7.27B | 38.52 | 1.49% | 4.08% | -17.34% | 296.23% | |
54 Neutral | $13.38B | ― | -4.63% | 9.95% | -4.61% | -1035.60% | |
53 Neutral | $1.18B | 3.64 | -0.04% | 6.26% | -2.24% | -136.10% | |
52 Neutral | €14.90B | 121.59 | 0.12% | ― | 9.62% | -95.91% | |
44 Neutral | $6.84B | 20.41 | 0.81% | 2.30% | 17.77% | -58.36% |
* Real Estate Sector Average
Performance Comparison
HK:0778
Fortune Real Estate Investment
4.96
1.50
43.39%
HK:0258
Tomson Group Limited
3.23
1.48
84.57%
HK:2778
Champion Real Estate Investment
2.12
0.68
46.81%
HK:0041
Great Eagle Holdings
14.56
4.80
49.18%
HK:0173
K Wah International Holdings
2.18
0.54
32.52%
HK:0754
Hopson Development Holdings Limited
3.78
0.83
28.14%
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.