Powerlong Real Estate Holdings Ltd. (1238) AI Stock Analysis

• Market Cap: HK$1.02B
• Dividend Yield: N/A
• Average Volume (3M): 942.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• Revenue Growth: -11.33%
• EPS Growth: -7.70%
• Country: HK
• Employees: 8,152
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.71
• Shares Outstanding: 4,140,403,000
• 10 Day Avg. Volume: 835,900
• 30 Day Avg. Volume: 942,000
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.13
• 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: 38 Underperform
• Price Target: HK$0.23 ▼(-8.00% Downside)

Powerlong Real Estate Holdings Ltd. is currently facing significant financial and operational challenges, as reflected in its low financial performance score. The technical analysis indicates a bearish trend, with the stock trading below key moving averages and showing oversold conditions. The valuation is unattractive due to negative profitability and the lack of a dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Diverse Revenue Streams

The company's diverse revenue streams from sales, leasing, and management services provide a stable income base, mitigating risks associated with market fluctuations in any single segment.

Strategic Partnerships

Partnerships with local governments and developers enhance project financing and land acquisition capabilities, supporting long-term growth and competitive positioning in the real estate market.

Substantial Asset Base

A substantial asset base provides a foundation for future development projects and potential leverage in financial restructuring, supporting long-term operational stability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and the ability to sustain operations without external financing, posing a risk to long-term financial health.

Declining Profitability

Declining profitability and negative margins indicate operational inefficiencies and competitive pressures, challenging the company's ability to generate sustainable earnings.

Powerlong Real Estate Holdings Ltd. Business Overview & Revenue Model

Company Description

Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, operates, and manages commercial real estate projects in the People's Republic of China. The company operates through four segments: Property Development, Property Investment, Commercial Operation and Residential Property Management, and Other Property Development Related Businesses. It develops commercial and residential properties. The company also operates hotels; and provides residential property management services, as well as construction services. As of December 31, 2021, it developed, owned, and operated 220 property development projects; operated investment properties primarily shopping malls with a total gross floor area (GFA) of approximately 7,286,508 square meters; had a land bank with a total GFA of 36.5 million square meters; and owned and managed eight international branded hotels and twelve self-owned branded chain hotels. The company was incorporated in 2007 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Powerlong Real Estate Holdings Ltd. generates revenue primarily through the sale of residential and commercial properties, which constitutes a significant portion of its income. The company develops and sells a variety of real estate projects, including apartments, office buildings, and shopping malls, effectively capitalizing on the booming property market in China. In addition to property sales, Powerlong also earns revenue from leasing commercial properties, which provides a steady stream of income. Furthermore, the company engages in property management services for its developments, adding another layer to its revenue model. Strategic partnerships with local governments and other developers help facilitate land acquisition and project financing, which are crucial for the company's growth and profitability.

Powerlong Real Estate Holdings Ltd. Financial Statement Overview

Summary

Powerlong Real Estate Holdings Ltd. is facing significant financial challenges, with declining revenue, profitability, and cash flow. The balance sheet is burdened with high debt, and recent losses have impacted equity returns. While the company has a substantial asset base, the overall financial health is concerning, highlighting the need for strategic management and potential restructuring.

Income Statement

The company exhibits a declining trend in revenue and profitability, with a significant drop in gross profit margin from 27.8% in 2020 to 9.1% in 2024. The net profit margin has turned negative, indicating losses. Revenue growth is negative as well, with a substantial contraction seen in recent years. The negative EBIT and EBITDA margins underscore operational challenges.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 1.78 in 2024, indicating potential risk. However, the equity ratio stands at 17.2%, demonstrating some level of stability. Return on equity has turned negative due to losses, but the company maintains a substantial asset base.

Cash Flow

The cash flow statement reveals a challenging situation with zero operating and free cash flow in 2024. Previous periods showed some free cash flow generation, but the recent lack of cash flow raises concerns about liquidity and sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.36B	25.76B	22.90B	31.38B	39.90B	35.50B
Gross Profit	2.36B	2.35B	2.45B	9.88B	12.52B	12.82B
EBITDA	507.76M	545.06M	-538.26M	7.27B	9.27B	10.25B
Net Income	-5.79B	-5.77B	-2.59B	445.75M	6.03B	6.14B
Balance Sheet
Total Assets	181.09B	192.02B	214.81B	233.75B	245.06B	195.13B
Cash, Cash Equivalents and Short-Term Investments	6.03B	6.11B	7.85B	9.73B	19.60B	25.65B
Total Debt	57.14B	58.97B	61.68B	65.87B	75.50B	67.46B
Total Liabilities	134.24B	142.62B	159.49B	171.15B	182.65B	143.33B
Stockholders Equity	29.96B	33.04B	37.59B	41.63B	41.21B	36.74B
Cash Flow
Free Cash Flow	905.47M	1.54B	5.06B	4.07B	1.48B	-12.40B
Operating Cash Flow	933.53M	1.71B	5.56B	4.44B	1.94B	-12.01B
Investing Cash Flow	-192.41M	-274.89M	3.91B	-1.65B	-22.86B	-5.24B
Financing Cash Flow	-1.06B	-3.07B	-11.32B	-12.55B	15.10B	22.36B

Powerlong Real Estate Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1238, the sentiment is Negative. The current price of 0.25 is above the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.26, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1238.

Powerlong Real Estate Holdings Ltd. 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%
1321	61 Neutral	HK$1.25B	13.85	1.84%	―	-54.44%	120.18%
0563	52 Neutral	HK$1.53B	-2.58	-4.51%	―	23.54%	-204.92%
0095	48 Neutral	HK$1.91B	-0.29	-28.76%	―	-58.04%	-65.03%
0230	46 Neutral	HK$3.25B	-1.06	-114.48%	―	-26.58%	-40.96%
1238	38 Underperform	HK$1.02B	-0.16	-17.55%	―	-11.33%	-7.70%
1668	38 Underperform	HK$1.22B	-0.14	―	―	―	―

Powerlong Real Estate Holdings Ltd. Corporate Events

Powerlong Real Estate Renews Digitalization Service Agreement with Shanghai Yueshang

Powerlong Real Estate Holdings Ltd. has renewed its agreement with Shanghai Yueshang for digitalization services, extending the partnership from January 2026 to December 2028. This renewal, under the 2026 Digitalization Service Agreement, ensures continued digital service provision, including internet digital services and information systems, which is crucial for the company’s operational efficiency and compliance with Hong Kong’s Listing Rules.

Powerlong Extends Consent Fee Deadline for Debt Restructuring

Powerlong Real Estate Holdings Ltd. has announced an extension of the Consent Fee Deadline related to its holistic solution for offshore debt restructuring. Over 73% of the Scheme Debt holders have agreed to the RSA, and the deadline extension to December 19, 2025, allows additional creditors more time to complete necessary procedures. This move reflects the company’s commitment to accommodating creditor needs and ensuring broad participation in its restructuring efforts.

Powerlong Real Estate Adjourns Liquidation Hearing for Restructuring Talks

Powerlong Real Estate Holdings Ltd. has announced a further adjournment of the liquidation application hearing against its wholly-owned subsidiary in the British Virgin Islands. This delay is intended to allow more time for the company to negotiate a restructuring support agreement with its offshore creditors, highlighting ongoing financial restructuring efforts.

Powerlong Real Estate Reports October 2025 Sales Figures

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for October 2025, revealing a contracted sales value of approximately RMB714 million and a contracted sales area of 66,960 square meters for the month. For the first ten months of 2025, the company achieved a total contracted sales value of RMB6,145 million and a total contracted sales area of 537,974 square meters. These figures are based on preliminary internal data and may differ from future audited financial statements, thus investors are advised to exercise caution.

Powerlong Real Estate Advances Restructuring to Address Liquidity Challenges

Powerlong Real Estate Holdings Ltd. has announced significant progress in its efforts to address liquidity issues related to its Scheme Debt. The company has entered into a Restructuring Support Agreement (RSA) with holders of approximately 31% of the Scheme Debt, aiming to implement a holistic solution that includes various options for creditors, such as cash, shares, and bonds. The company is seeking broader support from all debt holders to ensure the successful implementation of the restructuring plan, which is crucial for stabilizing its financial position and complying with regulatory requirements.

Powerlong Real Estate Reports September 2025 Sales Figures

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for September 2025, revealing a contracted sales value of approximately RMB524 million and a sales area of 42,389 square meters for the month. For the first nine months of 2025, the total contracted sales value reached RMB5,431 million with a total sales area of 471,014 square meters. These figures are preliminary and may differ from future audited financial statements, and investors are advised to exercise caution.

Powerlong Real Estate Updates on Liquidity and Restructuring Efforts

Powerlong Real Estate Holdings Ltd. has announced updates on its plans to address liquidity issues and resolve a disclaimer of opinion from its auditor regarding its going concern status. The company is actively engaging in restructuring discussions with offshore creditors, refinancing existing borrowings, and implementing cost-control measures, including workforce optimization. These efforts aim to stabilize the company’s financial position and ensure business continuity.

Powerlong Real Estate Reports August 2025 Sales Figures

Powerlong Real Estate Holdings Limited reported unaudited operating statistics for August 2025, revealing a contracted sales value of approximately RMB602 million and a contracted sales area of 54,820 square meters. For the first eight months of 2025, the company achieved a total contracted sales value of RMB4,906 million and a total contracted sales area of 428,625 square meters. These figures, based on preliminary internal data, highlight the company’s ongoing sales activities, though investors are advised to exercise caution as the data may vary from future audited reports.