China Merchants Commercial Real Estate Investment Trust (1503) AI Stock Analysis

• Market Cap: HK$1.35B
• Dividend Yield: 9.33%
• Average Volume (3M): 343.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: 3.93%
• EPS Growth: -5.97%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Diversified
• EPS (TTM): -0.18
• Shares Outstanding: 1,127,819,600
• 10 Day Avg. Volume: 298,464
• 30 Day Avg. Volume: 343,531
• PEG Ratio: 0.05
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.89
• 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: 49 Neutral
• Price Target: ―

The overall stock score of 49 reflects a challenging financial position with persistent net losses and cash flow issues, balanced by improving revenue and EBIT margins. The technical analysis suggests a neutral market position. Valuation presents concerns due to a negative P/E ratio, despite a high dividend yield.

China Merchants Commercial Real Estate Investment Trust Business Overview & Revenue Model

Company Description

China 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 Money

China Merchants Commercial Real Estate Investment Trust generates revenue primarily through rental income from its commercial property portfolio. The company leases office spaces, retail areas, and other commercial units to a variety of tenants, ensuring a steady stream of rental income. Additionally, the REIT may engage in asset management services, where it provides property management and leasing services to enhance the value and operational efficiency of its assets. Strategic partnerships with property developers and other REITs may also contribute to its earnings by expanding its investment opportunities and achieving economies of scale. The company's revenue streams are bolstered by its focus on high-traffic, strategically located properties that attract premium tenants, thereby ensuring occupancy rates remain high and rental yields are optimized.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
529.36M	489.16M	431.70M	432.83M	370.13M
	Gross Profit
383.72M	355.23M	318.29M	320.30M	273.94M
	EBIT
357.13M	328.01M	293.37M	288.34M	249.56M
	EBITDA
0.00	-39.87M	-2.64M	98.23M	109.82M
	Net Income Common Stockholders
-178.35M	-189.39M	-209.54M	267.70M	285.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.09B	1.08B	1.14B	734.09M	355.32M
	Total Assets
10.08B	10.39B	10.82B	7.56B	7.21B
	Total Debt
4.09B	4.05B	4.05B	2.21B	2.01B
	Net Debt
3.10B	2.97B	2.91B	1.48B	1.66B
	Total Liabilities
5.52B	5.51B	6.78B	27.19M	3.30B
	Stockholders Equity
3.10B	3.39B	3.66B	4.01B	3.91B
Cash Flow		Free Cash Flow
0.00	274.87M	200.36M	235.09M	194.39M
	Operating Cash Flow
0.00	274.91M	200.37M	235.09M	194.71M
	Investing Cash Flow
0.00	-67.55M	-1.07B	119.28M	-132.32M
	Financing Cash Flow
0.00	-269.07M	1.27B	24.40M	-1.17B

China Merchants Commercial Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1503, the sentiment is Positive. The current price of 1.22 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.17, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1503.

China Merchants Commercial Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
2778	54 Neutral	$12.10B	―	-4.63%	3.46%	-4.61%	-1035.60%
1997	53 Neutral	$61.79B	69.34	0.47%	5.90%	-2.96%	-81.31%
1503	49 Neutral	HK$1.35B	―	-5.63%	9.33%	3.93%	-5.97%
1233	24 Underperform	HK$399.35M	―	-3320.67%	―	-38.81%	-263.64%