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Spring Real Estate Investment Trust (HK:1426)
:1426
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Spring Real Estate Investment
(OTC:1426)
Select Model
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Rating:51Neutral
Price Target:
HK$1.50
▼(-7.41% Downside)
The overall stock score is primarily influenced by financial performance and technical analysis. The company's strong gross margins and stable revenue growth are offset by concerns over profitability and high leverage. Technical indicators suggest a bearish trend, which further impacts the score. The high dividend yield provides some support but is overshadowed by negative earnings.
Spring Real Estate Investment (1426) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.39B
Dividend Yield9.33%
Average Volume (3M)185.10K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth-10.55%
EPS Growth-314.81%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.03
Shares Outstanding1,476,105,600
10 Day Avg. Volume213,800
30 Day Avg. Volume185,100
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)0.46
Price to Sales (P/S)3.63
P/FCF Ratio6.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Spring Real Estate Investment Business Overview & Revenue Model
Company DescriptionSpring Real Estate Investment Trust ("Spring REIT", stock code: 1426) is a real estate investment trust which invests in high quality income-producing real estate. Listed on 5 December 2013 on the Hong Kong Stock Exchange, Spring REIT offers direct exposure to two Premium Grade office buildings strategically located in the Central Business District of Beijing and 84 separate commercial properties in the United Kingdom. Spring REIT seeks to offer to Unitholders stable distributions and the potential for sustainable long-term growth through investing in a diversified portfolio of income producing real estate around the world.
How the Company Makes MoneySpring Real Estate Investment makes money through a combination of rental income, property sales, and real estate development projects. The company earns revenue from leasing space in its residential, commercial, and industrial properties to tenants. Additionally, it generates income by selling properties at a profit when market conditions are favorable. Spring Real Estate Investment also engages in development projects, where it constructs new properties or renovates existing ones to increase their value. Strategic partnerships with construction firms, property management companies, and financial institutions play a significant role in enhancing the company's earnings potential.
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.58
Neutral
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.65
Positive
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 719.87M | 747.48M | 732.45M | 577.85M | 600.63M | 590.36M |
| Gross Profit | 535.01M | 565.32M | 478.08M | 440.43M | 396.37M | 397.48M |
| EBITDA | 0.00 | 348.61M | 281.17M | 388.64M | 486.64M | 403.15M |
| Net Income | -135.22M | -49.61M | -77.54M | 32.97M | 509.95M | -213.42M |
Balance Sheet | ||||||
| Total Assets | 13.21B | 12.64B | 14.07B | 12.93B | 9.88B | 9.71B |
| Cash, Cash Equivalents and Short-Term Investments | 488.66M | 270.08M | 604.92M | 202.43M | 582.60M | 555.31M |
| Total Debt | 5.21B | 5.11B | 5.07B | 4.87B | 2.97B | 3.04B |
| Total Liabilities | 5.82B | 5.79B | 6.25B | 5.42B | 3.21B | 3.28B |
| Stockholders Equity | 6.31B | 5.89B | 6.75B | 7.42B | 8.19B | 7.64B |
Cash Flow | ||||||
| Free Cash Flow | 336.64M | 402.45M | 483.82M | 389.90M | 347.44M | 345.60M |
| Operating Cash Flow | 336.64M | 402.45M | 483.82M | 389.90M | 347.44M | 345.60M |
| Investing Cash Flow | 233.40M | -9.68M | -30.51M | -758.05M | -1.12M | -26.29M |
| Financing Cash Flow | -347.93M | -348.55M | -290.23M | 376.01M | -338.83M | -280.35M |
Spring Real Estate Investment Technical Analysis
Negative
1.62
Price Trends
1.65
Negative
1.64
Negative
1.66
Negative
Market Momentum
>-0.01
Positive
45.09
Neutral
35.87
Neutral
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 1.62 is below the 20-day moving average (MA) of 1.64, below the 50-day MA of 1.65, and below the 200-day MA of 1.66, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 35.87 is Neutral, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $4.74B | ― | -4.08% | 6.99% | -6.57% | -390.60% | |
59 Neutral | $2.16B | ― | -2.04% | 8.30% | -7.79% | -73.32% | |
58 Neutral | $3.95B | ― | ― | 8.21% | ― | ― | |
51 Neutral | HK$2.39B | ― | -2.11% | 9.33% | -10.55% | -314.81% | |
50 Neutral | HK$2.28B | ― | -18.66% | 9.28% | 4.47% | -885.70% | |
50 Neutral | ¥3.33B | ― | -3.62% | 0.53% | -8.25% | -55.79% |
* Real Estate Sector Average
HK:1426
Spring Real Estate Investment
1.62
-0.21
-11.43%
HK:0808
Prosperity Real Estate Investment
1.38
0.16
13.21%
HK:0435
Sunlight Real Estate Investment
2.27
0.50
28.25%
HK:0405
Yuexiu Real Estate Investment
0.91
-0.10
-9.99%
HK:2191
SF Real Estate Investment Trust
2.78
>-0.01
-0.22%
HK:87001
Hui Xian Real Estate Investment Trust
0.51
-0.07
-12.07%
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.