Midland Holdings Limited (1200) AI Stock Analysis

• Market Cap: HK$1.57B
• Dividend Yield: N/A
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.13
• Revenue Growth: 9.76%
• EPS Growth: 219.80%
• Country: HK
• Employees: 4,593
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.21
• Shares Outstanding: 716,896,000
• 10 Day Avg. Volume: 2,119,192
• 30 Day Avg. Volume: 2,776,503
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 0.95
• 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: HK$3.01
• Price Target Upside: 32.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$2.50 ▲(9.65% Upside)

The stock score is primarily driven by a strong valuation, indicating potential undervaluation. Financial performance shows positive revenue growth and improved margins, but is offset by volatility in profitability and cash flow. Technical analysis supports a moderate positive trend, enhancing the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Improved Gross Profit Margins

Improved gross profit margins reflect efficient cost control, which can lead to enhanced profitability and competitive positioning.

Balance Sheet Leverage

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Volatile Net Profit Margins

Volatile net profit margins can undermine long-term profitability and investor confidence, posing a risk to sustainable growth.

Inconsistent Cash Flow Growth

Inconsistent cash flow growth can limit the company's ability to fund operations and investments, affecting long-term financial health.

High Liabilities

High liabilities can strain financial resources, increasing risk and potentially limiting strategic flexibility in the long term.

Midland Holdings Limited Business Overview & Revenue Model

Company Description

Midland Holdings Limited, an investment holding company, provides property agency services in the Hong Kong, Macau, and the People's Republic of China. The company offers residential property agency services, as well as non-residential property agency services in respect of industrial, commercial, and shop properties; and money lending, project planning, commercial property management, and marketing and sales planning services, as well as surveying, leasing, and property management services. It also provides immigration consultancy services; surveying consultancy services, including valuation advisory, development study, sales, marketing, tender, and auction for projects; and operates internet website. In addition, the company offers property investment services; and overseas property projects' marketing and referral services. Midland Holdings Limited was founded in 1973 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Midland Holdings generates revenue primarily through its real estate transactions, including property sales and rentals. The company profits from property development by acquiring land, developing residential and commercial properties, and then selling or leasing them to consumers and businesses. Additionally, the company's real estate agency services contribute significantly to its earnings, as it earns commissions from property sales and leasing agreements. The company also benefits from property management fees charged to property owners for managing their assets. Strategic partnerships with other developers and financial institutions further enhance its revenue stream by facilitating access to capital and joint ventures in large-scale projects.

Midland Holdings Limited Financial Statement Overview

Summary

Midland Holdings Limited demonstrates strong revenue growth and improved gross profit margins, indicating better operational efficiency. However, volatility in net profit margins and inconsistent cash flow growth pose challenges. Improved balance sheet leverage is a positive, but high liabilities remain a risk.

Income Statement

The company has shown strong revenue growth with a significant increase from 2023 to 2024. Gross profit margins improved notably over the years, indicating better cost management. However, the net profit margin has been volatile, with some years showing losses, which could pose a risk to long-term profitability.

Balance Sheet

The debt-to-equity ratio has improved over the years, indicating better financial leverage management. The equity ratio remains stable, suggesting a solid equity base, but the overall high liabilities pose a risk. Return on equity has been inconsistent, reflecting fluctuations in profitability.

Cash Flow

Free cash flow has been positive, although growth has been inconsistent. The ratio of operating cash flow to net income has been favorable, indicating efficient cash generation relative to earnings. However, zero free cash flow reported in 2024 suggests potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.29B	6.09B	4.08B	3.12B	6.00B	4.98B
Gross Profit	5.29B	6.09B	4.08B	-285.16M	555.17M	318.55M
EBITDA	407.03M	447.13M	475.82M	78.78M	779.78M	812.20M
Net Income	297.65M	320.32M	-41.92M	-533.97M	100.21M	131.85M
Balance Sheet
Total Assets	4.42B	4.71B	3.57B	3.83B	6.35B	5.03B
Cash, Cash Equivalents and Short-Term Investments	722.16M	711.13M	532.15M	450.67M	1.51B	940.61M
Total Debt	263.48M	222.74M	456.84M	768.26M	1.53B	897.87M
Total Liabilities	3.28B	3.71B	2.91B	3.14B	5.17B	3.94B
Stockholders Equity	1.14B	993.71M	657.19M	684.25M	1.19B	1.09B
Cash Flow
Free Cash Flow	688.21M	636.20M	523.21M	45.98M	702.35M	634.44M
Operating Cash Flow	698.29M	644.60M	543.60M	103.32M	767.69M	694.49M
Investing Cash Flow	-9.91M	-2.51M	54.66M	-53.99M	-60.34M	-59.17M
Financing Cash Flow	-632.13M	-462.30M	-512.50M	-1.10B	-142.25M	-856.94M

Midland Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.28
• 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:1200, the sentiment is Neutral. The current price of 2.28 is below the 20-day moving average (MA) of 2.32, above the 50-day MA of 2.19, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 55.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1200.

Midland Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1200	71 Outperform	HK$1.57B	5.28	30.03%	―	9.76%	219.80%
1502	68 Neutral	HK$814.23M	6.84	8.63%	8.12%	16.65%	-8.74%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2270	64 Neutral	HK$2.28B	58.32	11.60%	―	21.08%	-18.26%
2215	53 Neutral	HK$431.40M	12.63	4.11%	―	-7.17%	-22.01%
0237	50 Neutral	HK$830.25M	―	-7.65%	3.90%	22.76%	-300.57%
0266	50 Neutral	HK$949.46M	-2.95	-3.04%	6.93%	-3.09%	62.33%

Midland Holdings Limited Corporate Events

Midland Holdings Renews Tenancy and Licence Agreement

Midland Holdings Limited has entered into a new Tenancy and Licence Framework Agreement with Mr. WONG, the company’s Chairman and a significant shareholder, to renew the previous agreement set to expire in September 2025. This agreement outlines the terms for property leasing and licensing between the company’s group members and Mr. WONG’s associated entities, ensuring continued operations under specified conditions for the next three years. The agreement is classified as a continuing connected transaction under Hong Kong’s Listing Rules, subject to certain reporting and review requirements.