Spring Real Estate Investment (1426) AI Stock Analysis

• Market Cap: HK$2.46B
• Dividend Yield: 9.1%
• Average Volume (3M): 112.43K
• Price to Earnings (P/E): 43.1
• Beta (1Y): 0.24
• Revenue Growth: -5.67%
• EPS Growth: 40.95%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Diversified
• EPS (TTM): -0.03
• Shares Outstanding: 1,470,261,600
• 10 Day Avg. Volume: 183,500
• 30 Day Avg. Volume: 112,433
• PEG Ratio: -0.37
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.10
• 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

• Rating: 54 Neutral
• Price Target: ―

Spring Real Estate Investment's financial performance is stable but hampered by profitability issues due to negative net income and high leverage. Technical analysis suggests a neutral to bearish sentiment with the stock trading below key moving averages. Valuation is challenged by a negative P/E ratio, although the high dividend yield provides some appeal. Overall, the stock scores moderately, reflecting the balance between financial stability and current profitability challenges.

Spring Real Estate Investment Business Overview & Revenue Model

Company Description

Spring Real Estate Investment (1426) is a prominent investment firm specializing in real estate assets across various sectors including residential, commercial, and industrial properties. The company is known for its strategic acquisition, development, and management of properties, focusing on delivering high returns to its investors through a diversified portfolio. Spring Real Estate Investment leverages its expertise in market analysis and property management to maximize asset value and ensure sustainable growth.

How the Company Makes Money

Spring Real Estate Investment generates revenue primarily through rental income from its portfolio of residential, commercial, and industrial properties. By leasing these properties, the company ensures a steady stream of income. Additionally, the firm engages in property development and sales, capitalizing on market opportunities to sell properties at a profit. The company may also earn revenue through property management services and joint ventures with strategic partners, optimizing operational efficiency and enhancing overall profitability. Key factors contributing to its earnings include market demand, property location, and effective asset management practices.

Spring Real Estate Investment Financial Statement Overview

Summary

Spring Real Estate Investment shows stable revenue growth and strong gross margins, but profitability is a concern with negative net income. The balance sheet reveals a high level of leverage, though it benefits from a solid equity ratio. Cash flow analysis is limited by missing data, but previous periods indicate positive free cash flow. Overall, the company demonstrates financial stability, but profitability and leverage require careful monitoring.

Income Statement

The company's gross profit margin is strong, indicating effective cost management with a margin of approximately 75.6% in the latest year. However, the net profit margin is negative due to net losses, raising concerns about profitability. The revenue growth rate from the previous year is modest at about 2.1%, showing slow growth. EBIT margin improved compared to the previous year, reflecting better operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high at approximately 0.81, indicating significant leverage. The return on equity is negative due to net losses, impacting shareholder returns. The equity ratio is strong at around 46.6%, showing a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

The cash flow metrics are limited due to missing free cash flow data for the latest period. Historically, the company has maintained a positive free cash flow, but the recent lack of data hinders a comprehensive analysis. The operating cash flow to net income ratio is not calculable due to negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
747.48M	732.45M	577.85M	528.45M	533.17M
	Gross Profit
565.32M	478.08M	440.43M	396.37M	397.48M
	EBIT
330.46M	223.50M	615.50M	531.94M	-257.21M
	EBITDA
348.61M	281.17M	0.00	552.09M	-126.59M
	Net Income Common Stockholders
-49.61M	-77.54M	118.43M	509.95M	-189.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
253.82M	222.89M	202.43M	156.05M	154.44M
	Total Assets
12.64B	12.79B	12.93B	9.88B	9.71B
	Total Debt
5.11B	5.07B	4.87B	2.97B	3.04B
	Net Debt
4.84B	4.84B	4.67B	2.82B	2.88B
	Total Liabilities
5.79B	11.81B	5.42B	3.21B	3.28B
	Stockholders Equity
5.89B	6.75B	6.56B	6.67B	6.43B
Cash Flow		Free Cash Flow
402.45M	483.82M	389.90M	347.44M	345.60M
	Operating Cash Flow
402.45M	483.82M	389.90M	347.44M	345.60M
	Investing Cash Flow
-9.68M	-27.61M	-758.05M	-1.12M	-26.29M
	Financing Cash Flow
-348.55M	-290.23M	376.01M	-338.83M	-280.35M

Spring Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1426, the sentiment is Negative. The current price of 1.67 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.71, and below the 200-day MA of 1.78, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1426.

Spring Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	71 Outperform	$3.74B	20.53	1.17%	8.65%	―	―
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0405	61 Neutral	$4.22B	―	-2.11%	5.57%	-5.33%	-2880.00%
0808	59 Neutral	HK$2.07B	―	-1.09%	8.48%	-5.60%	-1261.11%
87001	55 Neutral	¥3.23B	―	-3.39%	0.44%	-3.16%	-28.30%
1426	54 Neutral	HK$2.46B	43.06	-0.78%	9.10%	-5.67%	40.95%
2191	53 Neutral	€2.41B	30.90	-7.37%	11.11%	4.55%	-231.53%