Spring Real Estate Investment (1426) AI Stock Analysis

• Market Cap: HK$2.54B
• Dividend Yield: 8.94%
• Average Volume (3M): 201.83K
• 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: 55
• Industry: REIT - Diversified
• EPS (TTM): -0.03
• Shares Outstanding: 1,470,261,600
• 10 Day Avg. Volume: 329,000
• 30 Day Avg. Volume: 201,833
• 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: 57 Neutral
• 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 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
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: 1.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	74 Outperform	$4.02B	20.53	1.17%	8.05%	―	―
87001	61 Neutral	¥3.65B	―	-3.39%	0.39%	-3.16%	-28.30%
87001	61 Neutral	¥3.65B	―	-3.39%	0.39%	-3.16%	-28.30%
0808	59 Neutral	$2.19B	―	-1.09%	8.00%	-5.60%	-1261.11%
0405	58 Neutral	$4.27B	―	-2.11%	6.58%	-5.33%	-2880.00%
1426	57 Neutral	HK$2.54B	43.06	-0.78%	8.94%	-5.67%	40.95%
Sector *	53 Neutral	$1.19B	3.43	0.13%	7.15%	-2.13%	-128.06%
2191	50 Neutral	€2.49B	30.90	-7.37%	8.35%	4.55%	-231.53%
2191	50 Neutral	€2.49B	30.90	-7.37%	8.35%	4.55%	-231.53%