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

• Market Cap: HK$1.22B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.52
• Revenue Growth: 10.08%
• EPS Growth: -118.45%
• Country: HK
• Employees: 8,152
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Development
• EPS (TTM): -0.82
• Shares Outstanding: 4,140,403,000
• 10 Day Avg. Volume: 4,921,333
• 30 Day Avg. Volume: 2,673,111
• PEG Ratio: 0.02
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.74
• 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

• Rating: 38 Underperform
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenue, profitability, and liquidity issues. Technical indicators also suggest bearish momentum. The negative P/E ratio and absence of a dividend yield further reflect the stock's unattractiveness.

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 and leasing of properties, particularly its large-scale commercial and residential complexes. The company benefits from rental income from its investment properties, including shopping malls and office spaces, which provide a steady stream of cash flow. Additionally, Powerlong engages in property management services, offering operational and maintenance support to enhance tenant satisfaction and retention. The company also engages in strategic partnerships and joint ventures to expand its project portfolio and share risks, contributing to its overall earnings growth. These activities, combined with its strategic geographic positioning in high-demand areas, enable Powerlong to capitalize on China's ongoing urbanization and economic development.

Powerlong Real Estate Holdings Ltd. Financial Statement Overview

Summary

Powerlong Real Estate Holdings Ltd. faces significant financial challenges with declining revenue, negative profitability, and no cash flow generation. The company also has a high debt-to-equity ratio, indicating financial risk despite a substantial asset base.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.76B	22.90B	31.38B	39.90B	35.50B
Gross Profit	2.35B	2.45B	9.88B	12.52B	12.82B
EBITDA	527.34M	-538.26M	7.27B	9.27B	10.25B
Net Income	-5.77B	-2.59B	445.75M	6.03B	6.14B
Balance Sheet
Total Assets	192.02B	214.81B	233.75B	245.06B	195.13B
Cash, Cash Equivalents and Short-Term Investments	6.11B	7.85B	9.73B	19.60B	25.65B
Total Debt	58.97B	61.68B	65.87B	75.50B	67.46B
Total Liabilities	142.62B	159.49B	171.15B	182.65B	143.33B
Stockholders Equity	33.04B	37.59B	41.63B	41.21B	36.74B
Cash Flow
Free Cash Flow	1.54B	5.06B	4.07B	1.48B	-12.40B
Operating Cash Flow	1.71B	5.56B	4.44B	1.94B	-12.01B
Investing Cash Flow	-274.89M	3.91B	-1.65B	-22.86B	-5.24B
Financing Cash Flow	-3.07B	-11.32B	-12.55B	15.10B	22.36B

Powerlong Real Estate Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.32, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 76.85 is Neutral, 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 *	59 Neutral	C$1.24B	0.83	-8.20%	5.11%	9.89%	-25.14%
0095	40 Neutral	HK$1.30B	―	-25.08%	―	-39.64%	-125.38%
1238	38 Underperform	HK$1.22B	―	-16.13%	―	10.08%	-118.45%
ONF		€154.07M	―	-102.67%	―	―	―
CS4		€143.76M	―		16.84%	―	―
C7B		€119.79M	1.55	9.93%	―	―	―
0563	51 Neutral	HK$1.53B	2.80	-2.45%	9.06%	56.41%	-167.15%

Powerlong Real Estate Holdings Ltd. Corporate Events

Powerlong Real Estate Enhances Governance with Revised Nomination Committee Terms

Powerlong Real Estate Holdings Ltd. has revised and approved the terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity. This move is likely to enhance corporate governance and ensure diverse perspectives in decision-making, potentially strengthening the company’s industry position and stakeholder confidence.

Powerlong Real Estate Updates on Liquidity and Strategic Measures

Powerlong Real Estate Holdings Limited has provided an update on its strategic measures to address liquidity pressures and resolve a disclaimer of opinion from its auditor regarding going concern. The company is actively engaging with offshore creditors to restructure its indebtedness, has repaid significant borrowings, and extended loan maturities. Additionally, Powerlong is optimizing its workforce and adjusting sales strategies to maintain business stability and liquidity, achieving over 90% of its property sales target.

Powerlong Real Estate Approves Key Resolutions at AGM

Powerlong Real Estate Holdings Ltd. announced that all proposed resolutions were approved at its Annual General Meeting held on June 13, 2025. Key resolutions included the adoption of financial statements, re-election of directors, and granting mandates for share issuance and buybacks. The approval of these resolutions supports the company’s strategic initiatives and governance, potentially enhancing its market position and operational efficiency.

Powerlong Real Estate Announces Board Composition and Roles

Powerlong Real Estate Holdings Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes executive directors, a non-executive director, and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement may impact the company’s governance structure, potentially influencing its strategic decisions and stakeholder relations.

Powerlong Real Estate Reports May 2025 Sales Figures

Powerlong Real Estate Holdings Limited reported unaudited operating statistics for May 2025, revealing a contracted sales value of approximately RMB607 million and a contracted sales area of 53,938 square meters. For the first five months of 2025, the total contracted sales value reached RMB3,168 million with a total sales area of 273,338 square meters. These figures are preliminary and subject to change, highlighting the company’s ongoing activity in the real estate market.

Powerlong Real Estate Reschedules Subsidiary Liquidation Hearing

Powerlong Real Estate Holdings Limited announced a rescheduling of the liquidation application hearing for its subsidiary, Powerlong Real Estate (BVI) Holdings Limited, to 21 July 2025. The company advises stakeholders to exercise caution and seek professional advice when dealing with its securities, highlighting the potential risks involved.

Powerlong Real Estate Reports April 2025 Sales Figures

Powerlong Real Estate Holdings Limited reported unaudited operating statistics for April 2025, revealing a contracted sales value of approximately RMB564 million and a sales area of 51,077 square meters. For the first four months of 2025, the total contracted sales value reached approximately RMB2,561 million with a total sales area of 219,400 square meters. These figures are preliminary and subject to change, highlighting the company’s ongoing operations and market presence in the real estate sector.

Powerlong Real Estate Announces 2025 Annual General Meeting

Powerlong Real Estate Holdings Limited has announced its upcoming annual general meeting to be held on June 13, 2025, in Shanghai. Key agenda items include the adoption of financial statements for 2024, re-election of directors, and authorization for the board to manage director remuneration and share allotment. These resolutions aim to strengthen the company’s governance and operational capabilities, potentially impacting its market position and shareholder value.

Powerlong Real Estate Appoints New Financial Advisor for Liquidity Solution

Powerlong Real Estate Holdings Limited has appointed China International Capital Corporation Hong Kong Securities Limited as its new sole financial advisor to address its current liquidity issues. The company, along with its advisors, is working towards a holistic solution to reach an agreement with offshore creditors, emphasizing the need for patience and support from stakeholders.

Powerlong Real Estate Reports Q1 2025 Sales Figures

Powerlong Real Estate Holdings Limited reported unaudited operating statistics for March 2025, revealing a contracted sales value of approximately RMB696 million and a contracted sales area of 58,059 square meters. For the first quarter of 2025, the total contracted sales value reached RMB1,996 million with a total sales area of 168,323 square meters. These figures are preliminary and may vary from future audited reports, serving as a reference for investors who are advised to exercise caution.