Spring Real Estate Investment (1426) AI Stock Analysis

• Market Cap: HK$2.53B
• Dividend Yield: 9.54%
• Average Volume (3M): 230.37K
• Price to Earnings (P/E): 43.1
• Beta (1Y): 0.25
• Revenue Growth: -5.67%
• EPS Growth: 40.95%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Diversified
• EPS (TTM): -0.07
• Shares Outstanding: 1,470,261,600
• 10 Day Avg. Volume: 223,300
• 30 Day Avg. Volume: 230,366
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$2.03
• Price Target Upside: 18.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$2.00 ▲(16.28% Upside)

The overall stock score is primarily influenced by the company's financial performance, which shows stable revenue growth but is hindered by negative profitability and high leverage. Technical analysis indicates a stable trading pattern without strong momentum. Valuation concerns arise from a negative P/E ratio, though the high dividend yield is a positive aspect. The absence of earnings call and corporate events data limits further insights.

Spring Real Estate Investment Business Overview & Revenue Model

Company Description

Spring Real Estate Investment (1426) is a real estate investment firm focused on acquiring, managing, and developing a diverse portfolio of properties. The company operates across various sectors, including residential, commercial, and industrial real estate. Its core services include property management, leasing, and real estate development, aimed at generating long-term value for its investors.

How the Company Makes Money

Spring 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.

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
EBITDA	348.61M	281.17M	0.00	552.09M	-126.59M
Net Income	-49.61M	-77.54M	118.43M	509.95M	-189.92M
Balance Sheet
Total Assets	12.64B	12.79B	12.93B	9.88B	9.71B
Cash, Cash Equivalents and Short-Term Investments	253.82M	222.89M	202.43M	156.05M	154.44M
Total Debt	5.11B	5.07B	4.87B	2.97B	3.04B
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: Positive
• Last Price: 1.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.72 is above the 20-day moving average (MA) of 1.72, above the 50-day MA of 1.71, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.28 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	74 Outperform	$4.07B	20.53	1.17%	7.83%	―	―
0405	64 Neutral	HK$4.88B	―	-4.08%	7.16%	-6.57%	-390.60%
0808	59 Neutral	$2.20B	―	-2.04%	8.62%	-7.79%	-73.32%
1426	54 Neutral	HK$2.53B	43.06	-0.78%	9.54%	-5.67%	40.95%
Sector *	53 Neutral	$1.22B	2.62	-5.92%	5.60%	-2.39%	-110.72%
2191	53 Neutral	€2.43B	30.90	-18.66%	9.29%	-2.64%	-885.70%
87001	51 Neutral	¥3.39B	―	-3.62%	0.80%	-8.25%	-55.79%