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China Merchants Commercial Real Estate Investment Trust (HK:1503)
:1503

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

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China Merchants Commercial Real Estate Investment Trust

(Frankfurt:1503)

Rating:49Neutral
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 (1503) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionChina Merchants Commercial Real Estate Investment Trust (1503) is a real estate investment trust based in China, primarily focused on investing in commercial properties. The company engages in the ownership, management, and development of a diversified portfolio of income-generating commercial real estate assets, including office buildings, retail spaces, and mixed-use properties. It aims to provide stable income and capital growth to its investors by leveraging its strategic locations and professional management expertise.
How the Company Makes MoneyChina 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
55
Neutral
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
45
Neutral
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
529.36M489.16M431.70M432.83M370.13M
Gross Profit
383.72M355.23M318.29M320.30M273.94M
EBIT
357.13M328.01M293.37M288.34M249.56M
EBITDA
0.00-39.87M-2.64M98.23M109.82M
Net Income Common Stockholders
-178.35M-189.39M-209.54M267.70M285.05M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.09B1.08B1.14B734.09M355.32M
Total Assets
10.08B10.39B10.82B7.56B7.21B
Total Debt
4.09B4.05B4.05B2.21B2.01B
Net Debt
3.10B2.97B2.91B1.48B1.66B
Total Liabilities
5.52B5.51B6.78B27.19M3.30B
Stockholders Equity
3.10B3.39B3.66B4.01B3.91B
Cash FlowFree Cash Flow
0.00274.87M200.36M235.09M194.39M
Operating Cash Flow
0.00274.91M200.37M235.09M194.71M
Investing Cash Flow
0.00-67.55M-1.07B119.28M-132.32M
Financing Cash Flow
0.00-269.07M1.27B24.40M-1.17B

China Merchants Commercial Real Estate Investment Trust Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.21
Price Trends
50DMA
1.16
Positive
100DMA
1.15
Positive
200DMA
1.15
Positive
Market Momentum
MACD
0.01
Negative
RSI
57.94
Neutral
STOCH
53.33
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 1.21 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.16, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.94 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 Positive sentiment for HK:1503.

China Merchants Commercial Real Estate Investment Trust Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.83B10.980.41%8438.90%5.81%-21.06%
54
Neutral
HK$12.34B-4.63%7.98%-4.61%-1035.60%
53
Neutral
$60.66B68.070.47%6.84%-2.96%-81.31%
49
Neutral
€1.34B-5.63%10.29%3.93%-5.97%
24
Underperform
$390.94M-3320.67%-38.81%-263.64%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1503
China Merchants Commercial Real Estate Investment Trust
1.21
0.21
21.24%
HK:1233
Times China Holdings
0.19
-0.08
-30.74%
HK:2778
Champion Real Estate Investment
1.99
0.49
32.76%
HK:1997
Wharf Real Estate Investment Co
20.25
0.39
1.94%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.