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Spring Real Estate Investment Trust (HK:1426)
:1426

Spring Real Estate Investment (1426) AI Stock Analysis

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HK

Spring Real Estate Investment

(OTC:1426)

Rating:57Neutral
Price Target:
HK$2.00
▲(17.65%Upside)
The overall stock score of 57 reflects a balance of positive technical momentum and a high dividend yield against significant profitability concerns. Financial performance shows stability but is hindered by leverage and negative net income, while technical indicators suggest near-term optimism. Valuation remains a challenge due to negative earnings.

Spring Real Estate Investment (1426) vs. iShares MSCI Hong Kong ETF (EWH)

Spring Real Estate Investment Business Overview & Revenue Model

Company DescriptionSpring 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 MoneySpring 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
58
Neutral
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
65
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue747.48M732.45M577.85M528.45M533.17M
Gross Profit565.32M478.08M440.43M396.37M397.48M
EBITDA348.61M281.17M0.00552.09M-126.59M
Net Income-49.61M-77.54M118.43M509.95M-189.92M
Balance Sheet
Total Assets12.64B12.79B12.93B9.88B9.71B
Cash, Cash Equivalents and Short-Term Investments253.82M222.89M202.43M156.05M154.44M
Total Debt5.11B5.07B4.87B2.97B3.04B
Total Liabilities5.79B11.81B5.42B3.21B3.28B
Stockholders Equity5.89B6.75B6.56B6.67B6.43B
Cash Flow
Free Cash Flow402.45M483.82M389.90M347.44M345.60M
Operating Cash Flow402.45M483.82M389.90M347.44M345.60M
Investing Cash Flow-9.68M-27.61M-758.05M-1.12M-26.29M
Financing Cash Flow-348.55M-290.23M376.01M-338.83M-280.35M

Spring Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.70
Price Trends
50DMA
1.70
Positive
100DMA
1.73
Negative
200DMA
1.78
Negative
Market Momentum
MACD
<0.01
Negative
RSI
58.35
Neutral
STOCH
63.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1426, the sentiment is Positive. The current price of 1.7 is above the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.70, and below the 200-day MA of 1.78, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 63.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1426.

Spring Real Estate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.02B20.531.17%8.05%
61
Neutral
¥3.65B-3.39%0.39%-3.16%-28.30%
61
Neutral
¥3.65B-3.39%0.39%-3.16%-28.30%
59
Neutral
$2.19B-1.09%8.00%-5.60%-1261.11%
58
Neutral
$4.27B-2.11%6.58%-5.33%-2880.00%
57
Neutral
HK$2.54B43.06-0.78%8.94%-5.67%40.95%
53
Neutral
$1.19B3.430.13%7.15%-2.13%-128.06%
50
Neutral
€2.49B30.90-7.37%8.35%4.55%-231.53%
50
Neutral
€2.49B30.90-7.37%8.35%4.55%-231.53%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1426
Spring Real Estate Investment
1.73
>-0.01
-0.23%
HK:87001
Hui Xian Real Estate Investment Trust
0.56
-0.10
-15.15%
HK:87001
Hui Xian Real Estate Investment Trust
0.56
-0.10
-15.15%
HK:2191
SF Real Estate Investment Trust
3.03
0.58
23.57%
HK:2191
SF Real Estate Investment Trust
3.03
0.58
23.57%
HK:0808
Prosperity Real Estate Investment
1.38
0.15
12.65%
HK:0435
Sunlight Real Estate Investment
2.30
0.79
52.42%
HK:0405
Yuexiu Real Estate Investment
0.84
-0.03
-3.23%
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: Jul 08, 2025