Prosperity Real Estate Investment (0808) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: 8.3%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -7.79%
• EPS Growth: -73.32%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.11
• Shares Outstanding: 1,573,996,600
• 10 Day Avg. Volume: 1,083,135
• 30 Day Avg. Volume: 2,114,536
• PEG Ratio: -0.02
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 4.49
• P/FCF Ratio: 7.71
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 10.86
• Enterprise Value/Gross Profit: 17.12
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.71
• Price Target Upside: 23.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: HK$1.50 ▲(8.70% 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

Negative Factors

Prosperity Real Estate Investment Business Overview & Revenue Model

Company Description

Prosperity REIT [SEHK: 808] is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Prosperity REIT owns a diverse portfolio of seven high-quality properties in the decentralized business districts of Hong Kong, comprising all, or a portion of, three Grade A office buildings, one commercial building, two industrial/office buildings and one industrial building, with a total gross rentable area of about 1.28 million sq. ft.

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

While Prosperity Real Estate Investment demonstrates strong EBITDA margins and a stable balance sheet with manageable leverage, the declining revenue and negative net income raise concerns about profitability. The lack of recent cash flow data further exacerbates liquidity concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	416.18M	425.37M	437.31M	434.01M	444.98M	452.89M
Gross Profit	263.96M	275.16M	299.31M	280.04M	276.57M	306.10M
EBITDA	0.00	370.38M	278.36M	377.17M	23.89M	208.27M
Net Income	-133.64M	-74.64M	-5.67M	74.89M	57.02M	-874.50M
Balance Sheet
Total Assets	9.42B	9.63B	9.81B	9.98B	10.19B	10.51B
Cash, Cash Equivalents and Short-Term Investments	49.91M	47.32M	61.01M	100.37M	205.96M	351.79M
Total Debt	2.43B	2.40B	2.35B	2.31B	2.32B	2.33B
Total Liabilities	2.98B	2.95B	2.92B	2.88B	2.92B	2.97B
Stockholders Equity	6.44B	6.68B	6.89B	7.10B	7.26B	7.54B
Cash Flow
Free Cash Flow	208.30M	247.65M	283.91M	222.63M	260.51M	236.10M
Operating Cash Flow	208.30M	269.51M	306.86M	243.14M	267.03M	239.95M
Investing Cash Flow	-17.55M	-21.57M	-21.75M	-20.50M	-6.52M	-3.86M
Financing Cash Flow	-251.22M	-261.63M	-324.47M	-328.23M	-406.34M	-271.39M

Prosperity Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.38
• 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 Positive. The current price of 1.38 is below the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.37, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0405	64 Neutral	$4.74B	―	-4.08%	6.99%	-6.57%	-390.60%
0808	59 Neutral	$2.16B	―	-2.04%	8.30%	-7.79%	-73.32%
0435	58 Neutral	$3.95B	―	―	8.21%	―	―
1426	51 Neutral	HK$2.39B	―	-2.11%	9.38%	-10.55%	-314.81%
87001	50 Neutral	¥3.33B	―	-3.62%	0.53%	-8.25%	-55.79%
1503	46 Neutral	€1.40B	―	-3.25%	8.69%	-5.78%	61.05%