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China Merchants Commercial Real Estate Investment Trust (HK:1503)
:1503
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China Merchants Commercial Real Estate Investment Trust
(1503)
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Rating:46Neutral
Price Target:
HK$1.00
▼(-20.63% Downside)
The overall stock score reflects significant financial challenges, including persistent net losses and cash flow constraints, which are the most impactful factors. Technical indicators suggest a bearish trend, while the high dividend yield offers some appeal to income investors despite valuation concerns.
China Merchants Commercial Real Estate Investment Trust (1503) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
€1.40B
Dividend Yield8.62%
Average Volume (3M)289.60K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth-5.78%
EPS Growth61.05%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,127,819,600
10 Day Avg. Volume221,949
30 Day Avg. Volume289,598
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)0.42
Price to Sales (P/S)2.44
P/FCF Ratio4.82
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 ConsensusHold
Number of Analyst Covering0
China Merchants Commercial Real Estate Investment Trust Business Overview & Revenue Model
Company DescriptionChina Merchants Commercial REIT is a Hong Kong collective investment scheme constituted as a unit trust and authorised under section 104 of the SFO. China Merchants Commercial REIT is a REIT formed to primarily own and invest in high quality income-generating commercial properties in the PRC (including Hong Kong and Macao but excluding the CML Cities).
How the Company Makes MoneyThe company's revenue model is primarily based on rental income generated from its portfolio of commercial properties. China Merchants Commercial Real Estate Investment Trust earns money through leasing office and retail spaces to tenants, which provides a consistent stream of cash flow. Additionally, the company may benefit from property appreciation over time, contributing to its overall value. Significant partnerships with property management firms and strategic alliances with tenants enhance its operational efficiency and tenant retention, further bolstering its revenue streams. The trust also capitalizes on favorable market conditions for commercial real estate, allowing it to optimize rental rates and occupancy levels, which are critical factors in driving its earnings.
China Merchants Commercial Real Estate Investment Trust Financial Statement Overview
Summary
China Merchants Commercial Real Estate Investment Trust shows mixed financial health. While revenue and EBIT margins are improving, persistent net losses and absence of EBITDA impact profitability. Moderate leverage is accompanied by declining equity ratios, indicating potential financial risks. Cash flow constraints further complicate financial stability, signaling the need for enhanced cash management strategies.Income Statement
The revenue growth rate from 2023 to 2024 was 8.22%, indicating a moderate upward trajectory. Despite positive EBIT and gross profit, the company has consistent net losses, resulting in negative net profit margins. The EBIT margin for 2024 was strong at 96.93%, but the lack of EBITDA data affects comprehensive margin analysis.Balance Sheet
The debt-to-equity ratio in 2024 was 0.77, reflecting moderate leverage. However, the company has faced declining equity ratio trends, with 2024's equity ratio at 30.71%. Persistent net losses have negatively impacted return on equity, demonstrating potential financial instability.Cash Flow
The absence of free cash flow in 2024 prevents growth rate analysis. Operating cash flow to net income ratio is unavailable due to missing OCF data. The company's cash flow management appears challenging given financing cash outflows and no recorded free cash flow.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 488.03M | 529.36M | 489.16M | 431.70M | 432.83M | 370.13M |
| Gross Profit | 488.03M | 383.72M | 355.23M | 318.29M | 320.30M | 273.94M |
| EBITDA | -570.86M | -22.11M | -39.87M | -2.64M | 441.13M | 414.64M |
| Net Income | -97.75M | -178.35M | -189.39M | -209.54M | 267.70M | 285.05M |
Balance Sheet | ||||||
| Total Assets | 9.93B | 10.08B | 10.39B | 10.82B | 7.56B | 7.21B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.09B | 1.08B | 1.14B | 734.09M | 355.32M |
| Total Debt | 4.00B | 4.09B | 4.05B | 4.05B | 2.21B | 2.01B |
| Total Liabilities | 5.50B | 5.52B | 5.51B | 6.78B | 3.56B | 3.30B |
| Stockholders Equity | 3.00B | 3.10B | 3.39B | 3.66B | 4.01B | 3.91B |
Cash Flow | ||||||
| Free Cash Flow | 113.48M | 268.08M | 274.87M | 200.36M | 235.09M | 194.39M |
| Operating Cash Flow | 113.48M | 268.10M | 274.91M | 200.37M | 235.09M | 194.71M |
| Investing Cash Flow | -5.39M | -96.81M | -67.55M | -1.07B | 119.28M | -132.32M |
| Financing Cash Flow | -195.94M | -263.73M | -269.07M | 1.27B | 24.40M | -1.17B |
China Merchants Commercial Real Estate Investment Trust Technical Analysis
Negative
1.26
Price Trends
1.30
Negative
1.24
Positive
1.17
Positive
Market Momentum
-0.01
Positive
40.53
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1503, the sentiment is Negative. The current price of 1.26 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.30, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1503.
China Merchants Commercial Real Estate Investment Trust 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 | ― | ― | 8.11% | ― | ― | |
51 Neutral | HK$2.39B | ― | -2.11% | 9.38% | -10.55% | -314.81% | |
50 Neutral | ¥3.33B | ― | -3.62% | 0.53% | -8.25% | -55.79% | |
46 Neutral | €1.40B | ― | -3.25% | 8.62% | -5.78% | 61.05% |
* Real Estate Sector Average
HK:1503
China Merchants Commercial Real Estate Investment Trust
1.26
0.11
10.04%
HK:0808
Prosperity Real Estate Investment
1.41
0.18
14.73%
HK:1426
Spring Real Estate Investment
1.62
-0.20
-10.94%
HK:0435
Sunlight Real Estate Investment
2.28
0.51
28.81%
HK:0405
Yuexiu Real Estate Investment
0.90
-0.08
-8.44%
HK:87001
Hui Xian Real Estate Investment Trust
0.51
-0.05
-8.93%
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.