CK Asset Holdings (1113) AI Stock Analysis

• Market Cap: HK$156.09B
• Dividend Yield: 4.33%
• Average Volume (3M): 4.29M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.72
• Revenue Growth: 9.72%
• EPS Growth: -26.47%
• Country: HK
• Employees: 55,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 1.80
• Shares Outstanding: 3,499,778,300
• 10 Day Avg. Volume: 4,315,637
• 30 Day Avg. Volume: 4,288,852
• PEG Ratio: -0.40
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 11.69
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$50.00 ▲(20.25% Upside)

CK Asset Holdings scores well due to its strong valuation and positive technical indicators. However, financial performance is hindered by declining revenue and inconsistent cash flow, which slightly dampens the overall score. The absence of earnings call data and corporate events does not impact the analysis.

Positive Factors

Low leverage

A very low debt-to-equity ratio indicates conservative leverage, reducing refinancing and default risk through cycles. This balance sheet strength supports long-term capital deployment for land buys and developments, and provides flexibility to weather property-market downturns.

High equity ratio

A high equity ratio signals substantial equity financing and a strong capital base, enhancing creditworthiness and lowering financing costs. This structural cushion enables the company to pursue large-scale developments and investments with lower solvency risk over multiyear cycles.

Strong margins

Sustained high gross and operating margins reflect effective cost control and pricing power in development and investment income. Durable margins provide buffer against cyclical revenue dips and support long-term profitability and internal funding for new projects.

Negative Factors

Declining revenue trend

A multi-year revenue decline reduces scale and can strain project pipelines, rental income growth, and reinvestment capacity. If persistent, falling top-line growth undermines long-term cash generation and makes it harder to sustain investment levels and strategic expansion.

Inconsistent cash flow

Volatile operating cash conversion complicates capital planning for land acquisition, development, and dividends. Even with recent FCF recovery, inconsistent cash flow undermines predictability of funding, increasing reliance on external financing during slower cycles.

Earnings contraction

A significant decline in EPS growth signals pressure on profitability from weaker sales or margin erosion. Prolonged EPS contraction reduces retained earnings and limits the company's ability to fund projects internally or maintain dividend policies, affecting long-term shareholder value.

CK Asset Holdings Business Overview & Revenue Model

Company Description

CK Asset Holdings Limited operates as a property developer in Hong Kong, the Mainland, Singapore, the United Kingdom, continental Europe, Australia, Canada, and the United States. The company is involved in the leasing of office, industrial, retail, and other properties; residential property investment and development; and pub, and hotel and serviced suite operations. It also provides property and project management, aircraft leasing, investment in infrastructure and utility asset operation, finance, and property agency services. The company was formerly known as Cheung Kong Property Holdings Limited and changed its name to CK Asset Holdings Limited in September 2017. CK Asset Holdings Limited was incorporated in 2015 and is headquartered in Central, Hong Kong.

How the Company Makes Money

CK Asset Holdings generates revenue primarily through the sale and leasing of residential and commercial properties. The company's main revenue streams include property development, where it constructs and sells residential units and commercial buildings; property investment, which involves leasing out its real estate holdings for rental income; and hotel operations, providing accommodation and related services to guests. Significant partnerships with local and international contractors, as well as strategic land acquisitions, enhance its development capabilities and market reach. Additionally, CK Asset benefits from a strong brand reputation and established market presence, which contribute to its sales and rental income, especially in high-demand urban areas.

CK Asset Holdings Financial Statement Overview

Summary

CK Asset Holdings shows strong profitability and a robust capital structure, with a solid balance sheet and low leverage. However, declining revenue and inconsistent cash flow management are concerns that need addressing to ensure long-term financial health.

Income Statement

CK Asset Holdings has shown a decline in revenue over the recent years, particularly with a 3.63% decrease from 2023 to 2024. The gross profit margin remains strong at approximately 52.5% in 2024, indicating good cost management, but the net profit margin has decreased to 30.6%, reflecting pressures on profitability. The EBIT and EBITDA margins are robust, suggesting strong operational efficiency. Overall, while the company has maintained strong profitability metrics, the declining revenue trend is a concern.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.145, indicating conservative leverage. Return on equity is healthy at around 3.52%, demonstrating effective equity utilization. The equity ratio is high at approximately 78.85%, highlighting a strong capital structure with significant equity financing. The balance sheet reflects financial stability and low leverage risk.

Cash Flow

The cash flow statement indicates challenges in cash generation, with free cash flow improving to 9.59 billion in 2024 from a deficit in 2023. The free cash flow to net income ratio is favorable, suggesting efficient cash conversion from profits. However, the operating cash flow to net income ratio has been inconsistent, pointing to potential issues in cash flow management. Despite recent improvements, cash flow stability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.91B	45.53B	47.24B	56.34B	62.09B	57.62B
Gross Profit	24.20B	23.91B	25.13B	28.28B	35.26B	25.72B
EBITDA	11.96B	12.01B	23.84B	19.90B	28.73B	27.25B
Net Income	11.50B	13.94B	17.63B	21.97B	21.48B	16.83B
Balance Sheet
Total Assets	515.60B	501.78B	508.88B	514.82B	556.71B	520.70B
Cash, Cash Equivalents and Short-Term Investments	33.01B	36.07B	42.48B	61.20B	63.37B	59.52B
Total Debt	59.39B	57.63B	60.72B	62.02B	110.91B	85.54B
Total Liabilities	108.76B	101.58B	109.45B	129.04B	178.37B	159.69B
Stockholders Equity	402.17B	395.60B	385.84B	387.56B	379.16B	354.64B
Cash Flow
Free Cash Flow	12.36B	9.59B	-1.36B	4.23B	21.96B	21.88B
Operating Cash Flow	14.64B	11.81B	1.04B	6.69B	25.15B	23.20B
Investing Cash Flow	-4.80B	-4.45B	-4.02B	44.70B	-6.65B	-8.67B
Financing Cash Flow	-10.34B	-13.64B	-11.99B	-55.87B	-15.22B	-16.44B

CK Asset Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.58
• 50DMA: Positive
• 100DMA: Positive
• 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:1113, the sentiment is Positive. The current price of 41.58 is below the 20-day moving average (MA) of 43.85, above the 50-day MA of 41.48, and above the 200-day MA of 36.83, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 57.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1113.

CK Asset Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1113	70 Outperform	HK$156.09B	13.75	2.92%	4.33%	9.72%	-26.47%
0688	68 Neutral	HK$150.27B	10.01	3.63%	4.54%	-9.54%	-38.16%
1109	68 Neutral	HK$211.79B	7.21	10.17%	5.18%	14.40%	-2.55%
0083	67 Neutral	HK$107.55B	25.08	2.41%	5.62%	-0.48%	-13.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0960	62 Neutral	HK$70.03B	8.17	4.81%	3.96%	-16.02%	-30.04%
2202	49 Neutral	HK$59.02B	-0.66	-23.88%	―	-28.36%	-206.13%