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Guangdong - Hong Kong Greater Bay Area Holdings Ltd. (HK:1396)
:1396
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Guangdong - Hong Kong Greater Bay Area Holdings Ltd. (1396) AI Stock Analysis

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HK:1396

Guangdong - Hong Kong Greater Bay Area Holdings Ltd.

(Frankfurt:1396)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
HK$6.50
▲(4.33% Upside)
The overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are the most impactful factors. While technical indicators show bullish momentum, the high P/E ratio suggests overvaluation, contributing to a moderate overall score.

Guangdong - Hong Kong Greater Bay Area Holdings Ltd. (1396) vs. iShares MSCI Hong Kong ETF (EWH)

Guangdong - Hong Kong Greater Bay Area Holdings Ltd. Business Overview & Revenue Model

Company DescriptionGuangdong - Hong Kong Greater Bay Area Holdings Ltd. (1396) is a diversified investment holding company focused on leveraging opportunities arising from the economic integration of the Guangdong-Hong Kong-Macau Greater Bay Area. The company operates in various sectors including real estate development, infrastructure, and investment management. Its core offerings encompass property development projects, investment in commercial and residential properties, and infrastructure projects that facilitate the connectivity and economic growth within the Greater Bay Area.
How the Company Makes MoneyThe company generates revenue primarily through its real estate development activities, where it profits from the sale and leasing of residential and commercial properties. Additionally, it earns income from managing investments in infrastructure projects and partnerships in various developments within the Greater Bay Area. Key revenue streams include property sales, rental income from its portfolio of commercial properties, and returns from infrastructure investments. Significant partnerships with local governments and private developers also contribute to its earnings, facilitating access to lucrative projects and ensuring a steady pipeline of development opportunities.

Guangdong - Hong Kong Greater Bay Area Holdings Ltd. Financial Statement Overview

Summary
The company faces substantial financial challenges, with declining revenues, negative profitability, high leverage, and cash flow instability. These factors indicate significant financial distress and operational inefficiencies.
Income Statement
35
Negative
The income statement reveals significant challenges, with declining revenues and negative profitability metrics. The company has experienced a consistent revenue decline, falling from HK$5,570 million in 2021 to HK$2,603 million in 2024. Gross and net profit margins have been negative over recent years, indicating ongoing operational inefficiencies and financial distress. Despite these weaknesses, there is limited stability in revenue from previous highs.
Balance Sheet
40
Negative
The balance sheet shows a weakened financial position with high leverage and diminishing equity. The debt-to-equity ratio has increased as equity decreased significantly, from HK$5,088 million in 2021 to HK$389 million in 2024. This indicates a higher financial risk and reduced capacity to absorb losses. Positive cash reserves offer some liquidity, albeit insufficient to offset the high debt levels.
Cash Flow
30
Negative
Cash flow analysis highlights severe issues with cash generation and sustainability. The company shows no free cash flow in TTM, and historical data indicate inconsistent operating cash flows, oscillating from positive to negative values. This inconsistency, along with a lack of free cash flow, suggests operational struggles to maintain liquidity and financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.97B2.60B3.53B3.17B5.57B3.74B
Gross Profit-529.27M-622.71M21.16M-45.97M735.25M1.29B
EBITDA599.30M-1.41B-825.62M-627.61M-52.24M1.02B
Net Income162.22M-1.83B-1.21B-1.57B-498.48M360.70M
Balance Sheet
Total Assets5.86B12.66B18.22B22.71B23.87B18.98B
Cash, Cash Equivalents and Short-Term Investments613.87M159.78M176.84M78.12M1.37B1.79B
Total Debt425.07M5.73B6.23B7.52B5.65B3.17B
Total Liabilities2.80B12.56B15.98B19.19B18.22B13.12B
Stockholders Equity3.05B389.13M2.24B3.42B5.09B5.59B
Cash Flow
Free Cash Flow334.60M941.04M1.45B-891.75M-3.59B577.82M
Operating Cash Flow335.31M942.02M1.45B-890.57M-3.55B586.51M
Investing Cash Flow-42.42M-38.96M-7.30M176.58M-39.34M-1.38B
Financing Cash Flow-306.00M-917.62M-1.51B-590.16M3.18B1.02B

Guangdong - Hong Kong Greater Bay Area Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.23
Price Trends
50DMA
5.58
Positive
100DMA
4.68
Positive
200DMA
2.94
Positive
Market Momentum
MACD
0.18
Positive
RSI
53.86
Neutral
STOCH
56.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1396, the sentiment is Positive. The current price of 6.23 is above the 20-day moving average (MA) of 5.91, above the 50-day MA of 5.58, and above the 200-day MA of 2.94, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 56.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1396.

Guangdong - Hong Kong Greater Bay Area 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
$2.17B12.193.79%4.94%3.15%1.96%
HK$3.00B-1.83%1.18%-9.42%-153.41%
HK$6.88B125.6711.82%-28.71%
HK$888.27M-55.49%-29.26%88.87%
$2.21B-89.23%-71.42%-11.91%
$2.58B-0.05-22.55%30.07%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1396
Guangdong - Hong Kong Greater Bay Area Holdings Ltd.
5.96
5.72
2383.33%
HK:2777
Guangzhou R&F Properties Co
0.54
-0.99
-64.71%
HK:1813
KWG Group Holdings
0.26
-0.24
-48.00%
HK:0813
Shimao Property Holdings
0.28
-0.91
-76.47%
HK:0051
Harbour Centre Development Limited
4.20
-1.07
-20.30%

Guangdong - Hong Kong Greater Bay Area Holdings Ltd. Corporate Events

Guangdong – Hong Kong Greater Bay Area Holdings Completes Major Acquisition
Oct 23, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has completed a major transaction involving the acquisition of the entire issued share capital of a target company. This acquisition was finalized on October 23, 2025, with the issuance of 310,000,000 consideration shares at HK$3.15 per share. As a result, the target company has become a subsidiary of Guangdong – Hong Kong Greater Bay Area Holdings Ltd., and its financial results will now be consolidated into the company’s financial statements. This transaction alters the shareholding structure, with the vendor now holding a 27.58% stake.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. EGM Approves Key Resolutions
Oct 21, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced the results of its Extraordinary General Meeting (EGM) held on October 21, 2025. The company, which operates in the real estate and infrastructure development sector, focuses on projects within the Greater Bay Area of China. During the EGM, all proposed resolutions, including the grant of a Whitewash Waiver, were approved by shareholders. The approval of these resolutions is significant for the company’s strategic acquisitions and future growth plans, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong – Hong Kong Greater Bay Area Holdings Announces EGM for Key Resolutions
Sep 30, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has announced an extraordinary general meeting to discuss and approve a Sale and Purchase Agreement and related transactions. The meeting will also consider granting a specific mandate to issue shares and a waiver for the Vendor from making a mandatory general offer, which could impact the company’s shareholding structure and market positioning.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. Announces Major Acquisition and Share Issuance
Sep 30, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has dispatched a circular to its shareholders regarding a major transaction involving the acquisition of the entire issued share capital of a target company. This transaction includes the issuance of consideration shares under a specific mandate and an application for a whitewash waiver. The circular contains detailed information about the sale and purchase agreement, financial advisories, and recommendations from the Independent Board Committee. Shareholders are advised to review these details carefully ahead of the Extraordinary General Meeting scheduled for October 21, 2025.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong – Hong Kong Greater Bay Area Holdings Announces Further Delay in Circular Dispatch
Sep 9, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has announced a further delay in the dispatch of a circular related to a major transaction involving the acquisition of the entire issued share capital of a target company. The company has received consent from the Executive to extend the deadline for dispatching the circular to shareholders to September 30, 2025, due to the need for additional time to finalize the information, including a letter from the Independent Financial Adviser.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong-Hong Kong Greater Bay Area Holdings Reports Turnaround in Interim Results
Aug 27, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. reported its interim results for the six months ending June 30, 2025, showing a significant turnaround with a profit of RMB 951.7 million compared to a loss in the same period last year. This improvement is attributed to a substantial net gain, despite a decrease in revenue and ongoing challenges in the property market, indicating a strategic shift that could positively impact stakeholders and enhance the company’s industry positioning.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong-Hong Kong Greater Bay Area Holdings Issues Clarification on Profit Alert
Aug 21, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. issued a clarification announcement regarding a previous positive profit alert, which is considered a profit forecast under the Takeovers Code. The company acknowledged that the announcement did not meet the required standards due to practical difficulties and inadvertent mistakes, and it will ensure future compliance. The interim results expected by August 29, 2025, are anticipated to supersede the need for reporting on the profit alert, and shareholders are advised to exercise caution.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong-Hong Kong Greater Bay Area Holdings Reports Significant Profit Turnaround
Aug 19, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced a significant turnaround in its financial performance for the six months ending June 30, 2025, reporting an unaudited consolidated profit of no less than RMB 900 million, compared to a loss in the previous corresponding period. This improvement is attributed to debt restructuring income from the issuance of mandatory convertible bonds and a reduction in selling, administrative, and finance costs, reflecting enhanced operational and management efficiency.

The most recent analyst rating on (HK:1396) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Guangdong – Hong Kong Greater Bay Area Holdings Ltd. stock, see the HK:1396 Stock Forecast page.

Guangdong – Hong Kong Greater Bay Area Holdings Announces Delay in Circular Dispatch for Major Acquisition
Aug 19, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced a delay in the dispatch of a circular related to a major acquisition transaction and the application for a whitewash waiver. The delay is due to the need for additional time to finalize information, including a property valuation report and to obtain pre-vetting clearance from the Stock Exchange. The new deadline for dispatching the circular is set for on or before September 9, 2025. This extension may impact the company’s transaction timeline and stakeholder expectations.

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. Schedules Board Meeting for Interim Results
Aug 15, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced that a board meeting will be held on August 27, 2025, to consider and approve the interim results for the six months ended June 30, 2025, and its publication. This announcement is significant as it reflects the company’s ongoing financial transparency and commitment to stakeholders, potentially impacting investor confidence and market positioning.

Guangdong-Hong Kong Greater Bay Area Holdings Announces Major Acquisition
Jul 29, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced a major transaction involving the acquisition of the entire issued share capital of a target company for HK$976,500,000. This acquisition will be completed through the issuance of consideration shares under a specific mandate, which will result in the target company becoming a wholly-owned subsidiary and its financials consolidated into the group. The transaction will also make the vendor a substantial shareholder in the company, and the target company will benefit from economic advantages through VIE agreements with a PRC project group.

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: Oct 21, 2025