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

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HK:1238

Powerlong Real Estate Holdings Ltd.

(1238)

Rating:44Neutral
Price Target:
HK$0.50
▲(47.06% Upside)
The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenue, profitability, and cash flow. Technical analysis provides a mixed view with some potential for short-term momentum, but the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The absence of earnings call data and corporate events means these factors do not influence the score.

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 Ltd. (1238) is a prominent Chinese real estate development company, primarily engaged in the development and management of commercial properties, including shopping malls, hotels, and residential complexes. The company operates within the real estate and property management sectors, focusing on creating integrated urban complexes that combine retail, residential, and leisure facilities to enhance urban living.
How the Company Makes MoneyPowerlong Real Estate Holdings Ltd. generates revenue primarily through the sale and lease of its developed properties. The company's key revenue streams include the sales of residential properties, leasing of commercial spaces within its shopping malls, and operational income from its hotel properties. Additionally, Powerlong benefits from property management fees for services provided to residential and commercial properties. Strategic partnerships with local governments and businesses also contribute to its earnings by facilitating developments in prime urban locations, thereby increasing the value and attractiveness of its properties.

Powerlong Real Estate Holdings Ltd. Financial Statement Overview

Summary
Powerlong Real Estate Holdings Ltd. is experiencing significant financial difficulties. There is a declining trend in revenue, profitability, and cash flow, with a negative net profit margin and no operating or free cash flow in 2024. The balance sheet is heavily leveraged, and recent losses have negatively impacted equity returns, presenting a concerning financial outlook.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.76B22.90B31.38B39.90B35.50B
Gross Profit2.35B2.45B9.88B12.52B12.82B
EBITDA527.34M-538.26M7.27B9.27B10.25B
Net Income-5.77B-2.59B445.75M6.03B6.14B
Balance Sheet
Total Assets192.02B214.81B233.75B245.06B195.13B
Cash, Cash Equivalents and Short-Term Investments6.11B7.85B9.73B19.60B25.65B
Total Debt58.97B61.68B65.87B75.50B67.46B
Total Liabilities142.62B159.49B171.15B182.65B143.33B
Stockholders Equity33.04B37.59B41.63B41.21B36.74B
Cash Flow
Free Cash Flow1.54B5.06B4.07B1.48B-12.40B
Operating Cash Flow1.71B5.56B4.44B1.94B-12.01B
Investing Cash Flow-274.89M3.91B-1.65B-22.86B-5.24B
Financing Cash Flow-3.07B-11.32B-12.55B15.10B22.36B

Powerlong Real Estate Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.34
Price Trends
50DMA
0.34
Positive
100DMA
0.34
Positive
200DMA
0.42
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
44.88
Neutral
STOCH
25.00
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 0.34 is below the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.34, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$1.79B3.539.93%207.10%
65
Neutral
$2.04B16.954.04%5.08%1.74%-1.63%
52
Neutral
HK$1.60B2.80-2.45%8.66%56.41%-167.15%
45
Neutral
HK$1.24B-102.67%-21.75%-246.70%
45
Neutral
HK$1.91B-25.08%-39.64%-125.38%
44
Neutral
HK$1.43B-16.13%10.08%-118.45%
38
Underperform
€1.22B
12.50%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1238
Powerlong Real Estate Holdings Ltd.
0.34
-0.19
-35.85%
HK:0563
Shanghai Industrial Urban Development Group Ltd
0.34
-0.02
-5.56%
HK:0230
Minmetals Land Limited
0.37
0.10
37.04%
HK:1321
China New City Commercial Development Ltd
0.97
0.17
21.25%
HK:1668
China South City Holdings Limited
0.11
-0.06
-35.15%
HK:0095
LVGEM (China) Real Estate Investment Company Limited
0.32
-0.18
-36.00%

Powerlong Real Estate Holdings Ltd. Corporate Events

Powerlong Real Estate Announces July 2025 Sales Figures
Aug 8, 2025

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for July 2025, revealing a contracted sales value of approximately RMB582 million and a contracted sales area of 57,086 square meters. For the first seven months of 2025, the total contracted sales value reached approximately RMB4,305 million, with a total contracted sales area of 373,804 square meters. These figures, based on preliminary internal data, may vary from future audited reports, and investors are advised to exercise caution.

Powerlong Real Estate Announces Board Changes
Aug 1, 2025

Powerlong Real Estate Holdings Ltd. announced a change in its board, with Mr. Ngai Wai Fung resigning as the independent non-executive director and chairman of the Audit Committee, effective August 1, 2025. Mr. Au Yeung Po Fung, who has extensive experience in the real estate sector and has held senior management roles in various companies, will replace him. This leadership transition may impact the company’s strategic direction and governance, given Mr. Au Yeung’s substantial background in the industry.

Powerlong Real Estate Announces Board Composition and Roles
Aug 1, 2025

Powerlong Real Estate Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement highlights the company’s governance structure and may impact its strategic decision-making and stakeholder relations.

Powerlong Real Estate Adjourns Liquidation Hearing for Restructuring
Jul 14, 2025

Powerlong Real Estate Holdings Limited announced that the liquidation application against its wholly-owned subsidiary, Powerlong Real Estate (BVI) Holdings Limited, has been further adjourned to allow more time for restructuring its offshore indebtedness. This move indicates the company’s efforts to stabilize its financial position and suggests a strategic approach to managing its liabilities, which could impact its market positioning and stakeholder confidence.

Powerlong Real Estate Announces June 2025 Sales Figures
Jul 8, 2025

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for June 2025, revealing a contracted sales value of approximately RMB554 million and a contracted sales area of 43,380 square meters. For the first half of 2025, the total contracted sales value reached RMB3,723 million with a total contracted sales area of 316,718 square meters. These figures are based on preliminary internal data and may differ from future audited reports, urging investors to exercise caution.

Powerlong Real Estate Enhances Governance with Revised Nomination Committee Terms
Jun 30, 2025

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
Jun 30, 2025

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
Jun 13, 2025

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
Jun 13, 2025

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
Jun 9, 2025

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.

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: Aug 13, 2025