Prosperity Real Estate Investment (0808) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: 8.62%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -7.79%
• EPS Growth: -73.32%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Diversified
• EPS (TTM): -0.11
• Shares Outstanding: 1,573,996,600
• 10 Day Avg. Volume: 1,309,125
• 30 Day Avg. Volume: 1,561,369
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 10.62
• Enterprise Value/Gross Profit: 16.42
• Enterprise Value/Ebitda: 331.68
• 1Y Price Target: $1.72
• Price Target Upside: 23.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: HK$1.50 ▲(7.91% Upside)

Prosperity Real Estate Investment's overall stock score is primarily affected by its mixed financial performance and concerning valuation. Despite strong technical momentum, the challenges of negative earnings, declining revenue, and uncertain cash flows present significant risks. The high dividend yield provides some investor appeal, but sustainability is in question given the current financial pressures.

Positive Factors

Earnings

Interest savings led by lower HIBOR to support earnings.

Occupancy

Portfolio occupancy stood firm at c.94%, with limited vacancy risk in the near term.

Negative Factors

Interest Rates

A prolonged high interest rate environment could adversely impact its distribution income and valuation.

Leasing Demand

Further deterioration in leasing demand for decentralised office space could drag its earnings outlook and unit price performance.

Prosperity Real Estate Investment Business Overview & Revenue Model

Company Description

Prosperity Real Estate Investment (0808) is a prominent player in the real estate sector, focusing on the acquisition, development, and management of commercial properties. The company primarily operates in the Asia-Pacific region, with a diversified portfolio that includes office buildings, retail spaces, and industrial properties. Prosperity Real Estate Investment is committed to sustainable development and value creation for its stakeholders through strategic investments and efficient property management.

How the Company Makes Money

Prosperity Real Estate Investment generates revenue primarily through rental income from its extensive portfolio of commercial properties. The company leases office, retail, and industrial spaces to a variety of tenants, securing long-term contracts that ensure a steady cash flow. Additionally, Prosperity Real Estate Investment engages in property development and sales, capitalizing on market opportunities to enhance its asset base and profitability. The company may also enter joint ventures or strategic partnerships to optimize its investments and expand its market presence. Key factors contributing to its earnings include effective property management, strategic location of assets, and maintaining high occupancy rates.

Prosperity Real Estate Investment Financial Statement Overview

Summary

Prosperity Real Estate Investment's financial health presents a mixed picture. While the company demonstrates strong EBITDA margins and a stable balance sheet with manageable leverage, the recent decline in revenue and negative net income raise concerns. The lack of recent cash flow data exacerbates the uncertainty about the company's current liquidity position. Thus, while there are strengths in operational efficiency and capital structure, profitability and cash generation require attention.

Income Statement

Prosperity Real Estate Investment has experienced declining revenue over the past years, with a 2.73% decrease from 2023 to 2024. The Gross Profit Margin for 2024 stood at 64.7%, a slight decrease from previous years. The company has faced negative Net Income in recent years, indicating challenges in profitability. EBITDA margin remains strong at 87.06% in 2024, although net losses highlight underlying issues in operations.

Balance Sheet

The company's balance sheet shows a strong Equity Ratio of 69.33% in 2024, indicating a solid capital structure. The Debt-to-Equity ratio is manageable at 0.36, suggesting reasonable leverage. Return on Equity has been negative due to recent net losses, reflecting profitability challenges. Overall, the balance sheet remains stable with good equity levels.

Cash Flow

The cash flow situation is concerning with no operating or free cash flow reported for 2024, indicating potential liquidity issues. Previous years demonstrated positive free cash flow, but the lack of recent data questions the company's ability to generate cash from operations. Cash flow metrics need to be improved to support financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	425.37M	437.31M	428.81M	423.06M	457.47M
Gross Profit	275.16M	299.31M	280.04M	276.57M	306.10M
EBITDA	370.38M	278.36M	369.10M	23.89M	208.27M
Net Income	-74.64M	-5.67M	74.89M	57.02M	-874.50M
Balance Sheet
Total Assets	9.63B	9.81B	9.98B	10.19B	10.51B
Cash, Cash Equivalents and Short-Term Investments	47.32M	61.01M	100.37M	205.96M	351.79M
Total Debt	2.40B	2.35B	2.31B	2.32B	2.33B
Total Liabilities	2.95B	2.92B	2.88B	2.92B	2.97B
Stockholders Equity	6.68B	6.89B	7.10B	7.26B	7.54B
Cash Flow
Free Cash Flow	247.65M	283.91M	222.63M	260.51M	236.10M
Operating Cash Flow	269.51M	306.86M	243.14M	267.03M	239.95M
Investing Cash Flow	-21.57M	-21.75M	-20.50M	-6.52M	-3.86M
Financing Cash Flow	-261.63M	-324.47M	-328.23M	-406.34M	-271.39M

Prosperity Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.39
• 50DMA: Positive
• 100DMA: Positive
• 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:0808, the sentiment is Neutral. The current price of 1.39 is below the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.38, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 31.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0808.

Prosperity Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	74 Outperform	$4.07B	20.53	1.17%	7.83%	―	―
0405	64 Neutral	HK$4.88B	―	-4.08%	7.16%	-6.57%	-390.60%
0808	59 Neutral	$2.20B	―	-2.04%	8.62%	-7.79%	-73.32%
1426	54 Neutral	HK$2.53B	43.06	-0.78%	9.54%	-5.67%	40.95%
Sector *	53 Neutral	$1.22B	2.62	-5.92%	5.60%	-2.39%	-110.72%
87001	51 Neutral	¥3.39B	―	-3.62%	0.80%	-8.25%	-55.79%
1503	49 Neutral	HK$1.57B	―	-5.63%	8.06%	3.93%	-5.97%