Vanke Property (Overseas) (1036) AI Stock Analysis

• Market Cap: HK$701.15M
• Dividend Yield: 3.33%
• Average Volume (3M): 211.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 178.97%
• EPS Growth: -2829.91%
• Country: HK
• Employees: 93
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.26
• Shares Outstanding: 389,527,920
• 10 Day Avg. Volume: 428,825
• 30 Day Avg. Volume: 211,900
• PEG Ratio: 0.03
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 2.01
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$2.00 ▲(11.11% Upside)

The overall stock score of 51 reflects a mixed outlook. The strong balance sheet is a positive factor, but the company's financial performance is undermined by weak income and cash flow. Technical analysis shows some positive momentum, but valuation concerns due to negative earnings weigh heavily. The dividend yield provides a slight positive offset.

Positive Factors

Strong Balance Sheet

A robust balance sheet with no debt enhances financial stability, reducing risk and providing flexibility for future investments and growth.

Revenue Growth

The notable increase in revenue in 2024 indicates potential for market expansion and improved sales strategies, supporting long-term growth.

Market Position

Focusing on high-quality developments positions the company well in the real estate market, appealing to premium segments and supporting brand reputation.

Negative Factors

Weak Cash Flow

Weak cash flow performance limits the company's ability to reinvest in operations, pay dividends, or reduce potential debt, affecting long-term sustainability.

Profitability Challenges

Declining profitability and negative margins indicate operational inefficiencies, potentially impacting future earnings and financial health.

Operational Inefficiencies

Volatile margins suggest difficulties in cost management and operational execution, which could hinder consistent profitability and growth.

Vanke Property (Overseas) Business Overview & Revenue Model

Company Description

Vanke Overseas Investment Holding Company Limited, an investment holding company, invests in, develops, finances, rents, and manages real estate properties in Hong Kong, the United Kingdom, and the United States. It also provides property redevelopment, asset management, administrative, and investment advisory services. The company was formerly known as Vanke Property (Overseas) Limited and changed its name to Vanke Overseas Investment Holding Company Limited in December 2019. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. Vanke Overseas Investment Holding Company Limited is a subsidiary of Wkland Investments Company Limited.

How the Company Makes Money

Vanke Property (Overseas) generates revenue primarily through the sale and leasing of residential and commercial properties. The company's revenue model is based on property development and sales, where it profits from building projects and selling them to end-users or investors. Additionally, the company earns rental income from its commercial properties and managed assets. Strategic partnerships with local governments and businesses enhance its market presence and facilitate smoother project execution, contributing to increased sales and rental revenues. Furthermore, the company may also benefit from ancillary services related to property management and investment advisory, diversifying its income streams.

Vanke Property (Overseas) Financial Statement Overview

Summary

Vanke Property (Overseas) exhibits a mixed financial profile. The balance sheet is robust with no debt and high equity, scoring 70, but income and cash flow statements reveal challenges with profit generation and cash flow stability, scoring 40 and 30 respectively. Overall, financial performance is hindered by operational inefficiencies and weak cash flow.

Income Statement

The company has faced challenges in recent years with a significant drop in net income in the latest year, resulting in a negative net profit margin. Revenue growth has been inconsistent with a notable increase in 2024, but profitability metrics such as EBIT and EBITDA margins have shown volatility, indicating operational challenges.

Balance Sheet

The balance sheet is strong, characterized by zero total debt in the most recent year and a substantial equity base, resulting in a solid equity ratio. The company's return on equity has been pressured by current income losses, but the absence of debt reduces financial risk significantly.

Cash Flow

Cash flow performance has been weak, with a noticeable absence of free cash flow in the most recent year. Operating cash flow has been volatile, and the lack of positive free cash flow indicates potential challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	892.75M	724.06M	364.29M	353.23M	461.20M	474.52M
Gross Profit	892.75M	140.20M	174.43M	164.05M	278.77M	305.28M
EBITDA	41.82M	14.74M	99.16M	147.59M	514.12M	249.63M
Net Income	-122.12M	-50.53M	27.70M	28.17M	424.58M	185.75M
Balance Sheet
Total Assets	4.34B	4.47B	5.11B	5.36B	5.95B	5.50B
Cash, Cash Equivalents and Short-Term Investments	587.51M	457.22M	610.29M	808.33M	1.25B	610.85M
Total Debt	23.57M	28.58M	385.39M	657.72M	1.27B	1.30B
Total Liabilities	240.84M	247.01M	815.70M	1.06B	1.65B	1.59B
Stockholders Equity	4.10B	4.22B	4.30B	4.30B	4.30B	3.91B
Cash Flow
Free Cash Flow	515.78M	244.39M	-73.03M	11.97M	46.14M	202.01M
Operating Cash Flow	516.06M	245.31M	-4.01M	162.22M	93.83M	221.32M
Investing Cash Flow	-19.38M	19.19M	388.48M	-507.31M	193.21M	28.97M
Financing Cash Flow	-388.21M	-417.14M	-360.28M	122.57M	-85.37M	-92.25M

Vanke Property (Overseas) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 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:1036, the sentiment is Negative. The current price of 1.8 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.82, and above the 200-day MA of 1.62, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 27.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1036.

Vanke Property (Overseas) 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%
0225	52 Neutral	HK$661.08M	-3.09	-4.79%	6.05%	6.17%	63.88%
1036	51 Neutral	HK$701.15M	-5.74	-2.93%	3.33%	178.97%	-2829.91%
0655	49 Neutral	HK$599.48M	-1.04	-6.19%	3.33%	1.62%	-63.95%
6677	48 Neutral	HK$479.52M	-1.28	-17.20%	7.31%	-7.62%	-1151.82%
3913	44 Neutral	HK$431.51M	-0.44	-29.80%	―	-15.03%	-3600.73%
0367	39 Underperform	HK$510.13M	-0.86	-7.61%	―	-7.97%	19.98%

Vanke Property (Overseas) Corporate Events

Vanke Overseas Calls Extraordinary General Meeting to Approve New Management Framework

Vanke Overseas Investment Holding Company Limited, a subsidiary of Vanke Property, is convening an extraordinary general meeting to discuss and approve a new management services framework agreement. This agreement involves several Vanke entities and outlines transactions and proposed annual caps for a three-year period ending in December 2028. The approval of this agreement is crucial for the company’s operational alignment and strategic management across its international subsidiaries.

Vanke Overseas Delays Circular Dispatch for Management Services Agreement

Vanke Overseas Investment Holding Company Limited has announced a delay in the dispatch of a circular related to its New Management Services Framework Agreement, initially expected by 19 November 2025. The delay, now extending the dispatch date to on or before 3 December 2025, is due to the need for additional time to finalize the circular’s contents and arrange for bulk printing, impacting the timeline for shareholder engagement and decision-making.

Vanke Property (Overseas) Signs New Management Services Agreement

Vanke Property (Overseas) has announced the signing of a New Management Services Framework Agreement with VPHK Parties, effective from 2025 to 2028. This agreement, which involves continuing connected transactions, requires independent shareholders’ approval due to its significant financial implications under the Listing Rules.