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Powerlong Real Estate Holdings Ltd. (HK:1238)
:1238
Hong Kong Market

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

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HK:1238

Powerlong Real Estate Holdings Ltd.

(1238)

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Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
HK$0.23
▼(-11.54% 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. (1238) vs. iShares MSCI Hong Kong ETF (EWH)

Powerlong Real Estate Holdings Ltd. Business Overview & Revenue Model

Company DescriptionPowerlong 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 MoneyPowerlong 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
30
Negative
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
45
Neutral
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
20
Very Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.36B25.76B22.90B31.38B39.90B35.50B
Gross Profit2.36B2.35B2.45B9.88B12.52B12.82B
EBITDA507.76M545.06M-538.26M7.27B9.27B10.25B
Net Income-5.79B-5.77B-2.59B445.75M6.03B6.14B
Balance Sheet
Total Assets181.09B192.02B214.81B233.75B245.06B195.13B
Cash, Cash Equivalents and Short-Term Investments6.03B6.11B7.85B9.73B19.60B25.65B
Total Debt57.14B58.97B61.68B65.87B75.50B67.46B
Total Liabilities134.24B142.62B159.49B171.15B182.65B143.33B
Stockholders Equity29.96B33.04B37.59B41.63B41.21B36.74B
Cash Flow
Free Cash Flow905.47M1.54B5.06B4.07B1.48B-12.40B
Operating Cash Flow933.53M1.71B5.56B4.44B1.94B-12.01B
Investing Cash Flow-192.41M-274.89M3.91B-1.65B-22.86B-5.24B
Financing Cash Flow-1.06B-3.07B-11.32B-12.55B15.10B22.36B

Powerlong Real Estate Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.26
Price Trends
50DMA
0.25
Positive
100DMA
0.28
Negative
200DMA
0.31
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.35
Neutral
STOCH
68.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1238, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.35 is Neutral, neither overbought nor oversold. The STOCH value of 68.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1238.

Powerlong Real Estate Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
61
Neutral
HK$1.05B11.411.84%-54.44%120.18%
52
Neutral
HK$1.51B-2.54-4.51%23.54%-204.92%
48
Neutral
HK$1.75B-0.25-28.76%-58.04%-65.03%
46
Neutral
HK$3.25B-1.07-114.48%-26.58%-40.96%
41
Neutral
HK$1.22B-0.14
38
Underperform
HK$1.08B-0.18-17.55%-11.33%-7.70%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1238
Powerlong Real Estate Holdings Ltd.
0.27
-0.17
-39.08%
HK:0095
LVGEM (China) Real Estate Investment Company Limited
0.27
-0.08
-24.29%
HK:0230
Minmetals Land Limited
0.98
0.67
216.13%
HK:1668
China South City Holdings Limited
0.11
-0.06
-33.95%
HK:1321
China New City Commercial Development Ltd
0.56
-0.24
-30.00%
HK:0563
Shanghai Industrial Urban Development Group Ltd
0.32
-0.03
-8.70%

Powerlong Real Estate Holdings Ltd. Corporate Events

Powerlong Real Estate Calls January 2026 EGM to Approve Cooperation Agreement
Jan 12, 2026

Powerlong Real Estate Holdings Limited has called an extraordinary general meeting for 29 January 2026 in Shanghai, where shareholders will vote on approving and ratifying a Cooperation Agreement and its related transactions. The proposed resolution would also grant broad authorization to the company’s directors to implement the agreement, execute necessary documents, and make any variations deemed in the company’s interest, signaling a move to advance strategic cooperation that could influence its future operational and governance decisions.

The most recent analyst rating on (HK:1238) stock is a Hold with a HK$0.24 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Posts RMB7.27 Billion in Unaudited Contracted Sales for 2025
Jan 8, 2026

Powerlong Real Estate Holdings Limited reported unaudited operating statistics for December 2025, recording contracted sales of approximately RMB607 million on 71,290 square metres of gross floor area, including contributions from joint ventures and associated companies. For the full year ended 31 December 2025, the Group’s total contracted sales reached about RMB7.27 billion over 667,082 square metres, with management stressing that these figures are preliminary and unaudited and cautioning investors not to rely on them as definitive indicators of financial performance until formal financial statements are released.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate to Divest Entire Stake in Major Project-Holding Subsidiary
Dec 23, 2025

Powerlong Real Estate Holdings has agreed to sell 100% of the equity in a project-holding subsidiary, referred to as the Target Company, to Lianshang No.1, an entity ultimately owned by independent third parties Lishui Lianjia and Tianjin Yuanjian. The deal, executed via a Cooperation Agreement on 23 December 2025, constitutes a very substantial disposal under Hong Kong listing rules, meaning the Target Company will cease to be a subsidiary upon completion and the transaction will require shareholder approval at an extraordinary general meeting. The company plans to issue a circular with full details of the transaction by 23 February 2026, signaling a significant portfolio reshaping that could impact its asset mix and capital allocation strategy.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Steps Up Liquidity and Restructuring Efforts to Address Going-Concern Disclaimer
Dec 22, 2025

Powerlong Real Estate Holdings has outlined progress on a suite of measures aimed at easing its liquidity pressure and addressing a going-concern disclaimer of opinion from its auditor. The company has secured the dismissal, by consent order, of a liquidation petition against a key BVI subsidiary, advanced an offshore debt restructuring with more than 85% of scheme creditors now supporting a restructuring support agreement, and scheduled a Hong Kong court hearing in March 2026 to convene a creditors’ meeting for the proposed scheme. Management reports active refinancing negotiations with lenders, including repayment of about RMB1.687 billion in borrowings, refinancing of roughly RMB4.068 billion, and extensions on fifteen loans totaling about RMB827 million, alongside accelerated property sales that have achieved over 80% of the firm’s sales target for the period and a 5.6% reduction in headcount to cut staff costs. Collectively, these steps are intended to stabilise the group’s cash flow, improve its capital structure and bolster its case for removal of the going-concern disclaimer, while signaling to shareholders and creditors that the developer is actively pursuing a holistic solution to its financial stress.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Wins Majority Creditor Backing Ahead of March Court Hearing on Debt Restructuring
Dec 21, 2025

Powerlong Real Estate Holdings has reported strong creditor support for its offshore debt restructuring, with holders of over 85.48% of the scheme debt having acceded to the restructuring support agreement by the extended consent deadline of 19 December 2025. The company has scheduled a Hong Kong High Court hearing on 19 March 2026 to seek an order to convene a scheme meeting at which scheme creditors will vote on the proposed restructuring schemes, and it has warned shareholders and investors to exercise caution when trading its securities while the restructuring progresses.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate’s Liquidation Application Dismissed, Paving Way for Restructuring
Dec 10, 2025

Powerlong Real Estate Holdings Limited announced that the liquidation application against its wholly-owned subsidiary, Powerlong Real Estate (BVI) Holdings Limited, has been dismissed. This dismissal, achieved through a consent order, facilitates the successful implementation of the company’s restructuring plan, as outlined in their restructuring support agreement. This development is significant for the company’s operational stability and may impact its market positioning positively, though stakeholders are advised to exercise caution and seek professional advice when dealing with the company’s securities.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Reports November 2025 Sales Performance
Dec 8, 2025

Powerlong Real Estate Holdings Limited announced its unaudited operating statistics for November 2025, reporting a contracted sales value of approximately RMB521 million and a contracted sales area of 57,818 square meters for the month. For the eleven months ended November 2025, the total contracted sales value reached RMB6,666 million with a total contracted sales area of 595,792 square meters. These figures, based on preliminary internal data, are subject to change and are provided for investor reference, highlighting the company’s ongoing sales performance in the real estate market.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Renews Digitalization Service Agreement with Shanghai Yueshang
Dec 1, 2025

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.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Extends Consent Fee Deadline for Debt Restructuring
Nov 28, 2025

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.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Adjourns Liquidation Hearing for Restructuring Talks
Nov 14, 2025

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.

The most recent analyst rating on (HK:1238) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Reports October 2025 Sales Figures
Nov 7, 2025

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.

The most recent analyst rating on (HK:1238) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Advances Restructuring to Address Liquidity Challenges
Oct 12, 2025

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.

The most recent analyst rating on (HK:1238) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 28, 2025