Link Real Estate Investment (0823) AI Stock Analysis

• Market Cap: $104.29B
• Dividend Yield: 6.66%
• Average Volume (3M): 8.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 2.29%
• EPS Growth: -339.64%
• Country: HK
• Employees: 1,300
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 1.31
• Shares Outstanding: 2,604,686,300
• 10 Day Avg. Volume: 6,596,149
• 30 Day Avg. Volume: 8,732,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 10.09
• Enterprise Value/Gross Profit: 13.66
• Enterprise Value/Ebitda: 14.56
• 1Y Price Target: $47.62
• Price Target Upside: 16.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: HK$43.00 ▲(5.19% Upside)

The overall stock score of 60 reflects a mixed financial performance with stable revenue growth but challenges in profitability and cash flow stability. Technical indicators suggest a lack of strong momentum, and valuation concerns arise from a negative P/E ratio despite a high dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Steady revenue growth indicates a strong market position and effective asset management, supporting long-term business sustainability.

Strong Equity Base

A strong equity base provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Consistent Operating Cash Flow

Consistent operating cash flow ensures liquidity and the ability to fund operations and investments without relying heavily on external financing.

Negative Factors

Profitability Challenges

Challenges in profitability can hinder the company's ability to reinvest in growth and may affect its competitive positioning over time.

High Total Debt Levels

Elevated debt levels can strain financial resources, limiting strategic flexibility and increasing vulnerability to interest rate changes.

Declining Net Income

A declining net income indicates potential inefficiencies or market challenges, which could impact long-term financial health and shareholder returns.

Link Real Estate Investment Business Overview & Revenue Model

Company Description

Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world and Asia's largest REIT in terms of market capitalisation. Listed in 2005 as the first REIT in Hong Kong, Link has been 100% held by public and institutional investors and is a Hang Seng Index constituent stock. From its home in Hong Kong, Link manages a diversified portfolio including retail facilities, car parks and offices spanning Hong Kong, Beijing, Guangzhou, Shanghai, Shenzhen, London and Sydney. Link seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of our medium-term target Vision 2025.

How the Company Makes Money

Link Real Estate Investment generates revenue primarily through rental income from its diversified portfolio of properties. The company leases spaces in shopping malls, office buildings, and residential complexes, which provides a steady cash flow. Additionally, Link engages in property development and redevelopment projects, enhancing the value of its assets and generating profits from the sale or leasing of newly developed properties. The company also benefits from strategic partnerships with local and international retailers, which can lead to increased foot traffic and higher occupancy rates in its retail spaces. Furthermore, Link utilizes effective asset management strategies to optimize operational efficiency and reduce costs, thereby boosting overall profitability.

Link Real Estate Investment Financial Statement Overview

Summary

Link Real Estate Investment shows resilience through steady revenue growth and a strong equity base. However, ongoing challenges with profitability and fluctuating cash flows present areas for improvement. A focus on stabilizing net income and managing debt levels will be crucial for future financial health.

Income Statement

The income statement reveals mixed results with a declining net income and inconsistent EBITDA, causing concern despite stable revenue growth over the years. The gross profit margin remains strong, but the net profit margin has been negative in recent years due to high expenses or losses.

Balance Sheet

The balance sheet shows a solid equity position with an improving debt-to-equity ratio, indicating good financial health. However, the high total debt levels pose a potential risk if profitability does not improve. The equity ratio is strong, reflecting a solid asset base.

Cash Flow

Cash flow analysis highlights consistent operating cash flow, supporting the company's liquidity. However, fluctuating free cash flow and high capital expenditures impact overall cash flow stability. The ability to maintain positive free cash flow growth is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.41B	13.58B	14.22B	12.34B	11.69B	10.87B
Gross Profit	10.64B	10.07B	10.62B	9.21B	8.78B	8.27B
EBITDA	9.99B	1.40B	-6.66B	8.81B	8.59B	8.32B
Net Income	-8.86B	-1.98B	-8.86B	15.45B	6.89B	1.19B
Balance Sheet
Total Assets	229.18B	252.31B	229.18B	268.16B	225.90B	210.06B
Cash, Cash Equivalents and Short-Term Investments	3.23B	9.68B	3.23B	17.89B	2.95B	2.53B
Total Debt	52.93B	59.29B	52.93B	69.10B	53.61B	42.48B
Total Liabilities	65.78B	73.87B	65.78B	79.10B	62.91B	51.37B
Stockholders Equity	163.47B	178.82B	163.47B	188.94B	162.69B	158.72B
Cash Flow
Free Cash Flow	8.02B	8.40B	8.94B	-11.17B	-3.20B	-478.00M
Operating Cash Flow	8.05B	8.48B	9.01B	6.27B	5.84B	6.29B
Investing Cash Flow	1.37B	-509.00M	1.52B	-24.69B	-10.70B	-10.68B
Financing Cash Flow	-13.25B	-14.71B	-14.36B	29.85B	5.12B	-1.13B

Link Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0823, the sentiment is Positive. The current price of 40.88 is above the 20-day moving average (MA) of 40.39, below the 50-day MA of 41.39, and above the 200-day MA of 38.08, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 65.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0823.

Link Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1113	70 Outperform	$132.08B	11.47	2.92%	4.67%	9.72%	-26.47%
0012	69 Neutral	$131.10B	21.74	1.89%	6.65%	-19.91%	-6.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0778	61 Neutral	$10.22B	―	-4.25%	7.07%	-4.20%	-138.86%
0823	60 Neutral	$104.29B	―	-5.19%	6.66%	2.29%	-339.64%
2778	52 Neutral	$12.64B	―	-6.12%	6.38%	-6.99%	-176.18%
1997	50 Neutral	$65.40B	84.16	-0.25%	5.85%	-3.87%	-124.27%