Link Real Estate Investment (0823) AI Stock Analysis

• Market Cap: $109.97B
• Dividend Yield: 9.57%
• Average Volume (3M): 8.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 2.29%
• EPS Growth: -339.64%
• Country: HK
• Employees: 1,300
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Retail
• EPS (TTM): 1.31
• Shares Outstanding: 2,599,733,200
• 10 Day Avg. Volume: 7,187,942
• 30 Day Avg. Volume: 8,520,875
• PEG Ratio: 0.04
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.31
• Price Target Upside: 21.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: HK$47.00 ▲(11.11%Upside)

Link Real Estate Investment's overall score is driven by solid technical indicators showing positive market momentum and a strong financial base with areas for improvement in profitability and cash flow stability. The attractive dividend yield offers some compensation for valuation concerns due to negative earnings. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Earnings

FY25 distribution income exceeded forecast due to favourable tax resolution.

Market Expansion

Link REIT continues to seek diversification through acquisitions in Singapore, Japan, and Australia to enhance its earnings base and augment distribution growth.

Market Sentiment

Positive developments regarding the inclusion of the REIT into Stock Connect should boost sentiment towards Link REIT sharply given its large market capitalisation, strong trading liquidity, and resilient earnings.

Negative Factors

Interest Rates

Any interest rate hike would adversely affect the distribution and valuation of Link REIT.

Rental Income

Any deterioration in Hong Kong’s non-discretionary retail market would drag the REIT’s rental income.

Retail Market Conditions

The subdued retail sentiment and cautious economic outlook are expected to keep reversionary growth in Hong Kong’s retail portfolio in negative low-to-mid single digits in FY26.

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 extensive portfolio of retail, office, and parking properties. The company leases these spaces to a variety of tenants, including retail businesses, corporate offices, and individuals, ensuring a steady stream of rental income. Additionally, Link REIT benefits from property management fees and income from strategic property development and redevelopment projects. The company's earnings are further enhanced through strategic partnerships and joint ventures that expand its portfolio and improve asset value over time.

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. High expenses have led to negative net profit margins, and the high debt levels are a concern despite the improving debt-to-equity ratio.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.22B	13.58B	12.34B	11.69B	10.87B
Gross Profit	10.62B	10.07B	9.21B	8.78B	8.27B
EBITDA	-6.66B	10.11B	8.81B	8.59B	8.32B
Net Income	-8.86B	-1.98B	15.45B	6.89B	1.19B
Balance Sheet
Total Assets	229.18B	252.31B	268.16B	225.90B	210.06B
Cash, Cash Equivalents and Short-Term Investments	3.23B	9.68B	17.89B	2.95B	2.53B
Total Debt	52.93B	59.29B	69.10B	53.61B	42.48B
Total Liabilities	65.78B	73.87B	79.10B	62.91B	51.37B
Stockholders Equity	163.47B	178.82B	188.94B	162.69B	158.72B
Cash Flow
Free Cash Flow	8.94B	8.40B	-11.17B	-3.20B	-478.00M
Operating Cash Flow	9.01B	8.48B	6.27B	5.84B	6.29B
Investing Cash Flow	1.52B	-509.00M	-24.69B	-10.70B	-10.68B
Financing Cash Flow	-14.36B	-14.71B	29.85B	5.12B	-1.13B

Link Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.30
• 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:0823, the sentiment is Positive. The current price of 42.3 is below the 20-day moving average (MA) of 42.47, above the 50-day MA of 40.91, and above the 200-day MA of 35.54, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 49.60 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
0823	69 Neutral	$109.97B	―	-5.19%	9.57%	2.29%	-339.64%
Sector *	54 Neutral	$1.19B	3.63	0.13%	7.39%	-2.13%	-128.06%
CHKGF	―	$15.74B	8.50	3.52%	6.16%	―	―
CMPNF	―	$1.71B	―	-4.63%	2.95%	―	―
FRIVF	―	$1.29B	―	-1.89%	8.30%	―	―
HLDVF	―	$16.31B	20.10	1.94%	11.87%	―	―
WRFRF	―	$9.03B	76.06	0.47%	5.57%	―	―