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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 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
HK$3.50
▼(-36.36% Downside)
The overall stock score is primarily driven by significant financial distress, characterized by high debt, declining revenues, and lack of profitability. Technical analysis provides some positive signals, but they are overshadowed by the company's poor financial health and valuation metrics. The absence of earnings call data and corporate events further emphasizes the company's current challenges.

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 Limited, together with its subsidiaries, develops, operates, and sells residential properties, and commercial trade and logistics centers in the Mainland China. It operates in two segments, Property Development and Related Services; and Trading Business. The Property Development and Related Services segment provides develops and sells properties; and value-added business, such as property management and rental services. The Trading Business segment engages in the trading of non-ferrous metals and chemical products. The company develops trade centers under the YOUNGO and HYDOO brand names. It also provides investment management and finance leasing services. The company was formerly known as Hydoo International Holding Limited and changed its name to Guangdong - Hong Kong Greater Bay Area Holdings Limited in August 2020. The company was founded in 1995 and is headquartered in Shenzhen, the People's Republic of China. Guangdong - Hong Kong Greater Bay Area Holdings Limited is a subsidiary of China Guangdong – Hong Kong Greater Bay Area Holdings Limited.
How the Company Makes MoneyGuangdong - Hong Kong Greater Bay Area Holdings Ltd. generates revenue primarily through the sale and leasing of residential, commercial, and industrial properties. The company invests in land reserves and real estate projects to develop high-value properties that meet the demands of the growing urban population in the Greater Bay Area. Additionally, the company earns income from property management services, which include facility management, maintenance, and leasing services. Strategic partnerships with local governments and real estate developers enhance its project execution capabilities and market reach, contributing significantly to its earnings. The company's financial performance is also bolstered by its involvement in urban renewal initiatives, which aim to revitalize existing urban areas, thereby increasing the value of its property assets.

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

Summary
The company is facing severe financial challenges across all financial statements. The income statement shows a significant decline in revenue and persistent losses. The balance sheet is weak with high leverage and diminishing equity, while the cash flow analysis reveals severe issues with cash generation and sustainability. Overall, the financial position indicates high risk and financial distress.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.60B3.53B3.17B5.57B3.74B
Gross Profit-622.71M21.16M-45.97M735.25M1.29B
EBITDA-1.41B-825.62M-1.19B-52.24M1.02B
Net Income-1.83B-1.21B-1.73B-445.11M360.70M
Balance Sheet
Total Assets12.66B18.22B22.71B23.87B18.98B
Cash, Cash Equivalents and Short-Term Investments1.47B176.84M78.12M1.37B1.79B
Total Debt5.73B6.23B7.52B5.65B3.17B
Total Liabilities12.56B15.98B19.19B18.22B13.12B
Stockholders Equity389.13M2.24B3.42B5.09B5.59B
Cash Flow
Free Cash Flow941.04M1.45B-891.75M-3.59B577.82M
Operating Cash Flow942.02M1.45B-890.57M-3.55B586.51M
Investing Cash Flow-38.96M-7.30M176.58M-39.34M-1.38B
Financing Cash Flow-917.62M-1.51B-590.16M3.18B1.02B

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

Technical Analysis Sentiment
Positive
Last Price5.50
Price Trends
50DMA
4.51
Positive
100DMA
3.76
Positive
200DMA
2.18
Positive
Market Momentum
MACD
0.25
Positive
RSI
60.16
Neutral
STOCH
38.36
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 5.5 is above the 20-day moving average (MA) of 5.37, above the 50-day MA of 4.51, and above the 200-day MA of 2.18, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.36 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
54
Neutral
3.10B-11.90-0.49%1.14%-9.42%-153.41%
50
Neutral
2.78B-0.13-111.22%-71.42%-11.91%
47
Neutral
HK$4.48B112.947.13%-28.71%
41
Neutral
3.41B-0.06165.81%-22.55%30.07%
41
Neutral
990.76M-0.46-202.02%-29.26%88.87%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1396
Guangdong - Hong Kong Greater Bay Area Holdings Ltd.
5.50
5.23
1952.24%
GZUHF
Guangzhou R&F Properties Co
0.12
0.02
20.00%
KWGPF
KWG Group Holdings
0.04
0.01
33.33%
SIOPF
Shimao Property Holdings
0.10
0.03
42.86%
HK:0051
Harbour Centre Development Limited
4.38
-0.57
-11.52%

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

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.

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. Announces Trading Halt
Jul 14, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has announced a trading halt on its shares on the Hong Kong Stock Exchange as of July 14, 2025. This suspension is due to an impending announcement related to The Code on Takeovers and Mergers, which involves inside information about the company. The halt indicates significant developments that could impact the company’s operations and influence its market positioning, potentially affecting stakeholders.

Board Restructuring at Guangdong – Hong Kong Greater Bay Area Holdings Ltd.
Jun 25, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced changes to its board of directors, effective June 25, 2025. The update outlines the roles and functions of the board members, including executive and independent non-executive directors, and their positions in various board committees. This restructuring may impact the company’s governance and strategic direction.

Guangdong – Hong Kong Greater Bay Area Holdings Limited Strengthens Audit Committee Governance
Jun 25, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Limited has outlined the terms of reference for its Audit Committee, which was initially established in 2013 and later amended in 2018 and 2025. The Audit Committee is tasked with assisting the Board in applying financial reporting and internal control principles and maintaining a relationship with the company’s auditors. The committee is composed of non-executive directors, with a majority being independent, and it meets at least twice a year. The announcement emphasizes the company’s commitment to strong governance and compliance with the Listing Rules, potentially enhancing stakeholder confidence.

Guangdong – Hong Kong Greater Bay Area Holdings Updates Nomination Committee Guidelines
Jun 25, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Limited has amended the terms of reference for its Nomination Committee, which is responsible for identifying and recommending candidates for the board of directors, overseeing board performance evaluations, and developing nomination guidelines. The committee, consisting of at least three members, primarily independent non-executive directors, aims to ensure diverse representation and effective governance, potentially impacting the company’s strategic direction and stakeholder engagement.

Guangdong-Hong Kong Greater Bay Area Holdings Updates Remuneration Committee Terms
Jun 25, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has updated the terms of reference for its Remuneration Committee, which was originally established in 2013. The committee’s purpose is to develop and administer transparent procedures for setting executive remuneration policies, evaluating performance, and reviewing incentive schemes. The committee is composed of at least three members, primarily independent non-executive directors, and meets at least once a year. This update aims to ensure the company’s governance aligns with the latest requirements and maintains independence in decision-making, potentially impacting executive management and stakeholder trust positively.

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. Updates Nomination Committee Composition
Jun 25, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has announced a change in the composition of its Nomination Committee in response to the amended corporate governance code effective from July 2025. Mr. Luo Jieping will step down, and Ms. Wei Haiyan will join the committee, which is expected to enhance the board’s effectiveness and diversity, thereby promoting higher corporate governance standards.

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. AGM Resolutions Unanimously Passed
Jun 20, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced that all proposed resolutions were passed at their Annual General Meeting held on June 20, 2025. These resolutions included the re-election of directors, authorization of the board to fix directors’ remuneration, re-appointment of the auditor, and granting mandates to issue and repurchase shares. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and operational stability.

Guangdong-Hong Kong Greater Bay Area Holdings Restructures Financial Instruments
Jun 10, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced the issuance of US$265,251,764 zero coupon mandatory convertible bonds due in 2026. This move follows the redemption of variable rate senior notes due in 2029, indicating a strategic restructuring of the company’s financial instruments. The issuance, governed by the MCB Trust Deed, aims to optimize the company’s capital structure and provide flexibility in financial management, potentially impacting stakeholders by altering the company’s debt profile.

Guangdong-Hong Kong Greater Bay Area Holdings Announces Redemption of Senior Notes
Jun 6, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced the redemption of its variable rate senior notes due in 2029, with all outstanding notes to be redeemed in full at a price equal to 55% of the outstanding principal amount. The redemption will be paid in kind with mandatory convertible bonds totaling approximately $241.5 million. Additionally, eligible holders who have provided consent will receive a paid-in-kind consent fee in the form of mandatory convertible bonds, expected to be paid around June 10, 2025. This move is part of the company’s strategic financial management, potentially impacting its financial structure and stakeholder interests.

Guangdong-Hong Kong Greater Bay Area Holdings Approves MCB Issuance
Jun 4, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. held an Extraordinary General Meeting on June 4, 2025, where shareholders approved a resolution to issue zero-coupon Mandatory Convertible Bonds (MCB) that can be converted into ordinary shares. This decision, passed unanimously, grants the company’s directors the authority to execute necessary actions related to the MCB issuance, potentially enhancing the company’s capital structure and supporting its strategic initiatives.

Guangdong-Hong Kong Greater Bay Area Holdings to Issue Convertible Bonds
May 15, 2025

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has announced an extraordinary general meeting scheduled for June 4, 2025, to consider the issuance of zero-coupon mandatory convertible bonds (MCB) that will be convertible into ordinary shares. This move is aimed at redeeming existing notes and could potentially impact the company’s capital structure and shareholder value.

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 05, 2025