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Fortune Real Estate Investment Trust (HK:0778)
:0778
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Fortune Real Estate Investment
(OTC:0778)
Rating:55Neutral
Price Target:
HK$4.50
▲(0.22%Upside)
Positive Factors
Distribution Yields
Fortune REIT offers distribution yields of 8.1-8.2% for FY25-26.
Long-term Growth
Population growth serves as long-term growth driver.
Portfolio Occupancy
Improving portfolio occupancy led by ramp up at +WOO.
Negative Factors
Earnings Decline
FY24 distributable income fell 11% y/y to HKD723mn on lower rental earnings and higher cash finance cost.
Local Consumption
Any deterioration in local consumption would impact leasing demand for retail space and hence weigh on the REIT’s earnings outlook.
Fortune Real Estate Investment (0778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$9.28B
Dividend Yield8.55%
Average Volume (3M)2.85M
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth-2.76%
EPS Growth-238.04%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength60
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.26
Shares Outstanding2,043,802,200
10 Day Avg. Volume3,029,439
30 Day Avg. Volume2,852,539
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.34
Price to Sales (P/S)0.00
P/FCF Ratio18.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.10Price Target Upside13.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Fortune Real Estate Investment Business Overview & Revenue Model
Company DescriptionEstablished 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 Main Board of The Stock Exchange of Hong Kong Limited. Fortune REIT currently holds a portfolio of 16 private housing estate retail properties in Hong Kong, comprising of 3 million sq. ft. of retail space and 2,713 car parking spaces. The retail properties are Fortune City One, +WOO, Ma On Shan Plaza, Metro Town, Fortune Metropolis, Belvedere Square, Laguna Plaza, Waldorf Avenue, Caribbean Square, Jubilee Square, Smartland, Tsing Yi Square, Centre de Laguna, Hampton Loft, Lido Avenue and Rhine Avenue. They house tenants from diverse trade sectors such as supermarkets, food and beverage outlets, banks, real estate agencies, and education providers.
How the Company Makes MoneyFortune Real Estate Investment makes money primarily through rental income generated from its portfolio of commercial, residential, and retail properties. The company also earns revenue from property appreciation and sales, as it strategically buys and sells properties to maximize returns. Additionally, it may engage in property development projects that, upon completion, provide substantial returns either through direct sales or by enhancing rental income potential. Key partnerships with financial institutions and real estate developers can also contribute to revenue by providing favorable financing terms and opportunities for joint ventures. The company's earnings are influenced by market conditions, property values, and economic factors that affect demand for real estate.
Fortune Real Estate Investment Financial Statement Overview
Summary
Fortune Real Estate Investment faces financial challenges with declining revenues and significant net losses. While cash flows are managed well, the company's increasing debt may pose risks if revenue and profitability do not improve.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 | EBIT |
| 1.13B | 1.17B | 998.71M | 1.55B | -2.58B | EBITDA |
| 1.14B | 1.16B | 998.71M | 1.55B | -2.58B | Net Income Common Stockholders |
| -518.98M | -154.92M | 502.64M | 1.32B | -3.19B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 96.65M | 106.72M | 206.86M | 117.96M | 177.17M | Total Assets |
| 38.46B | 39.51B | 40.34B | 39.72B | 39.34B | Total Debt |
| 9.81B | 9.66B | 9.58B | 8.84B | 8.76B | Net Debt |
| 9.72B | 9.55B | 9.37B | 8.72B | 8.58B | 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
4.49
Price Trends
4.28
Positive
4.14
Positive
4.04
Positive
Market Momentum
0.06
Positive
55.89
Neutral
65.59
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 4.49 is below the 20-day moving average (MA) of 4.50, above the 50-day MA of 4.28, and above the 200-day MA of 4.04, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.83B | 10.98 | 0.41% | 8438.90% | 5.81% | -21.06% | |
55 Neutral | HK$9.28B | ― | -1.89% | 8.55% | -2.76% | -238.04% | |
| $1.57B | ― | -4.63% | 7.98% | ― | ― | ||
| $468.57M | ― | -71.13% | ― | ― | ― | ||
| $630.27M | ― | -29.26% | ― | ― | ― | ||
| $7.73B | 61.77 | 0.47% | 6.84% | ― | ― |
* Real Estate Sector Average
Performance Comparison
HK:0778
Fortune Real Estate Investment
4.49
0.87
23.90%
CMPNF
Champion Real Estate Investment
0.23
0.04
21.05%
GZUHF
Guangzhou R&F Properties Co
0.12
0.02
20.00%
LPHHF
Logan Property Holdings Co
0.11
0.00
0.00%
WRFRF
Wharf Real Estate Investment Co
2.32
-0.22
-8.66%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.