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

• Market Cap: €6.58B
• Dividend Yield: N/A
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 120.1
• Beta (1Y): 3.28
• Revenue Growth: -28.71%
• EPS Growth: N/A
• Country: HK
• Employees: 194
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 1.28
• Shares Outstanding: 1,124,103,100
• 10 Day Avg. Volume: 3,493,650
• 30 Day Avg. Volume: 2,955,358
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 0.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$5.50 ▼(-5.98% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, high debt, and cash flow instability. Technical analysis provides some short-term support, but the high P/E ratio suggests overvaluation, further weighing down the score.

Positive Factors

Strategic Location

The company's strategic focus on the Greater Bay Area positions it to benefit from regional economic integration and infrastructure development, potentially driving long-term growth through increased connectivity and investment opportunities.

Partnerships

Strategic partnerships enhance access to lucrative projects and ensure a steady pipeline of development opportunities, supporting sustainable revenue streams and competitive positioning in the real estate sector.

Diversified Revenue Streams

Diversified revenue streams from property sales, rentals, and infrastructure investments provide resilience against sector-specific downturns, supporting long-term financial stability and growth potential.

Negative Factors

Declining Revenue

The significant decline in revenue over recent years indicates challenges in maintaining market share and operational efficiency, posing risks to long-term growth and financial health.

High Leverage

High leverage and diminishing equity increase financial risk, limiting the company's ability to absorb losses and invest in growth opportunities, potentially impacting long-term sustainability.

Inconsistent Cash Flows

Inconsistent cash flows and lack of free cash flow highlight operational struggles, potentially affecting liquidity and the ability to fund ongoing operations and strategic initiatives.

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

Company Description

Guangdong - 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 Money

The 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 inconsistent cash flows. These factors indicate significant financial distress and operational inefficiencies.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	2.60B	3.53B	3.17B	5.57B	3.74B
Gross Profit	-529.27M	-622.71M	21.16M	-45.97M	735.25M	1.29B
EBITDA	599.30M	-1.41B	-825.62M	-627.61M	-52.24M	1.02B
Net Income	162.22M	-1.83B	-1.21B	-1.57B	-498.48M	360.70M
Balance Sheet
Total Assets	5.86B	12.66B	18.22B	22.71B	23.87B	18.98B
Cash, Cash Equivalents and Short-Term Investments	613.87M	159.78M	176.84M	78.12M	1.37B	1.79B
Total Debt	425.07M	5.73B	6.54B	7.52B	5.65B	3.17B
Total Liabilities	2.80B	12.56B	15.98B	19.19B	18.22B	13.12B
Stockholders Equity	3.05B	389.13M	2.24B	3.42B	5.09B	5.59B
Cash Flow
Free Cash Flow	334.60M	941.04M	1.45B	-891.75M	-3.59B	577.82M
Operating Cash Flow	335.31M	942.02M	1.45B	-890.57M	-3.55B	586.51M
Investing Cash Flow	-42.42M	-38.96M	-7.30M	176.58M	-39.34M	-1.38B
Financing Cash Flow	-306.00M	-917.62M	-1.51B	-590.16M	3.18B	1.02B

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

• Technical Analysis Sentiment: Positive
• Last Price: 5.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.85 is below the 20-day moving average (MA) of 5.93, above the 50-day MA of 5.81, and above the 200-day MA of 3.44, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0051	54 Neutral	HK$2.95B	-11.30	-1.83%	1.15%	-9.42%	-153.41%
1396	44 Neutral	€6.58B	120.12	11.82%	―	-28.71%	―
1813	41 Neutral	$792.61M	―	-55.49%	―	-29.26%	88.87%
2777	40 Neutral	$2.06B	-0.10	-89.23%	―	-71.42%	-11.91%
0813	39 Underperform	$2.41B	-0.04	―	―	-22.55%	30.07%

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

Guangdong-Hong Kong Greater Bay Area Holdings Ltd. Announces Board Lot Size Reduction

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. announced a change in the board lot size for its shares, reducing from 8,000 to 2,000 shares per lot, effective November 24, 2025. This change aims to lower the investment threshold, enhance trading liquidity, and attract a broader investor base, ultimately benefiting both the company and its shareholders.

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 Unveils Strategic Land Development Plans

Guangdong – Hong Kong Greater Bay Area Holdings Ltd. has announced its recent business developments, highlighting an existing land bank of approximately 1.4 million sq.m. in Lanzhou. The company plans to develop various projects, including a high-performance data center, construction materials markets, and warehousing projects, with expected completion and revenue recognition between 2025 and 2027. The announcement indicates ongoing negotiations and contract signings with potential customers, suggesting a strategic expansion in the real estate sector.

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 Completes Major Acquisition

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

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

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

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

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

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.