Spring Real Estate Investment (1426) AI Stock Analysis

• Market Cap: HK$2.37B
• Dividend Yield: 9.5%
• Average Volume (3M): 144.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -10.55%
• EPS Growth: -314.81%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.03
• Shares Outstanding: 1,480,218,500
• 10 Day Avg. Volume: 224,100
• 30 Day Avg. Volume: 144,900
• PEG Ratio: 1.32
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 3.63
• P/FCF Ratio: 6.74
• 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: 52 Neutral
• Price Target: HK$1.50 ▼(-7.41% Downside)

The overall stock score of 52 reflects concerns about the company's profitability and high leverage, despite strong gross margins and a solid equity ratio. The technical analysis indicates a bearish trend, and the valuation is impacted by a negative P/E ratio, although the high dividend yield is a positive factor. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Strong Gross Margins

A strong gross margin indicates efficient cost management, which can support profitability and provide a buffer against market fluctuations.

Solid Equity Ratio

A strong equity ratio suggests financial stability and lower risk, providing a solid foundation for future growth and investment opportunities.

Positive Free Cash Flow

Consistent positive free cash flow indicates the company's ability to generate cash from operations, supporting reinvestment and debt servicing.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather downturns.

Negative Net Income

Negative net income raises concerns about the company's ability to generate profit, which is crucial for long-term sustainability and shareholder returns.

Negative Profit Margin

A negative profit margin indicates challenges in converting revenue into profit, which can hinder growth and investor confidence over time.

Spring Real Estate Investment Business Overview & Revenue Model

Company Description

Spring Real Estate Investment (1426) is a dynamic firm specializing in real estate investment and property management. The company focuses on acquiring, developing, and managing residential and commercial properties across key markets. With a commitment to maximizing property value and ensuring robust returns for investors, Spring Real Estate Investment leverages market analysis and innovative strategies to identify lucrative opportunities in the real estate sector.

How the Company Makes Money

The company generates revenue primarily through the acquisition and appreciation of real estate assets. Key revenue streams include rental income from managed properties, profits from the sale of properties after value addition, and management fees from clients for property management services. Additionally, Spring Real Estate Investment may engage in joint ventures or partnerships with other real estate firms and investors, enabling it to share resources and access larger capital pools for investment. Strategic alliances with financial institutions can also facilitate favorable financing options, further enhancing profit margins.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 1.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.62, below the 50-day MA of 1.63, and below the 200-day MA of 1.65, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 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

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%
0435	58 Neutral	$4.02B	-43.48	―	7.93%	―	―
0808	57 Neutral	$2.20B	-16.33	-2.04%	7.90%	-7.79%	-73.32%
0405	55 Neutral	$4.69B	-6.90	-4.08%	7.23%	-6.57%	-390.60%
1426	52 Neutral	HK$2.37B	―	-2.11%	9.50%	-10.55%	-314.81%
2191	50 Neutral	HK$2.31B	―	-18.66%	9.11%	4.47%	-885.70%
87001	46 Neutral	¥3.26B	-4.17	-3.62%	0.54%	-8.25%	-55.79%