Wharf Real Estate Investment Co (1997) AI Stock Analysis

• Market Cap: $67.71B
• Dividend Yield: 5.38%
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): 76.0
• Beta (1Y): 0.99
• Revenue Growth: -2.96%
• EPS Growth: -81.31%
• Country: HK
• Employees: 2,900
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): -0.62
• Shares Outstanding: 3,036,227,300
• 10 Day Avg. Volume: 3,914,182
• 30 Day Avg. Volume: 3,292,468
• PEG Ratio: -1.23
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.69
• 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: $18.76
• Price Target Upside: -15.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: HK$22.00 ▼(-1.35%Downside)

The company's overall stock score is primarily driven by its mixed financial performance and concerning cash flow situation. Technical analysis indicates positive momentum, but overbought signals suggest caution. High valuation metrics further dampen the score despite a strong dividend yield. The lack of cash flow highlights significant risks to financial stability.

Wharf Real Estate Investment Co Business Overview & Revenue Model

Company Description

Wharf Real Estate Investment Company Limited, an investment holding company, invests in, develops, owns, and operates properties and hotels in Hong Kong, Mainland China, and Singapore. The company operates through four segments: Investment Properties, Development Properties, Hotel, and Investment segments. It primarily operates Harbour City, a commercial space comprising offices, retail shops, serviced apartments, hotels and clubs, and car parking spaces; and Times Square, a retail space that consists of office and car parking spaces. The company also operates Wheelock House and Crawford House commercial properties; The Murray, a luxury hotel that consists of 336 rooms; Plaza Hollywood, a shopping mall with retail outlets, restaurants, and a stadium housing six-screen cinema multiplex; The Star Ferry, which provides two inner harbour ferry services, including Tsim Sha Tsui and Wan Chai; and Wheelock Place and Scotts Square mall. In addition, it offers leasing, finance, and management services; and engages in property investment. The company was founded in 1886 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Wharf Real Estate Investment Co generates revenue through a variety of streams associated with its real estate activities. Its primary income comes from leasing office spaces and retail properties to tenants, providing a steady flow of rental income. Additionally, the company earns revenue from the sale of residential units in its development projects. Wharf Real Estate Investment Co also benefits from strategic partnerships and joint ventures, which enhance its capabilities in property development and management. The company’s earnings are further supported by property appreciation and value-added services offered to tenants, contributing to its overall financial performance.

Wharf Real Estate Investment Co Financial Statement Overview

Summary

Wharf Real Estate Investment Co shows a mixed financial position. While the income statement and balance sheet demonstrate stability and strong margins, the absence of cash flow generation is concerning. The company needs to address declining revenue and improve cash flow management to enhance financial health and investor confidence.

Income Statement

The company's income statement shows mixed results. Gross profit margin is strong at 80.1%, and EBIT margin is healthy at 75.1%. However, the net profit margin is low at 6.9%, reflecting reduced profitability. Revenue has declined by 3% from the previous year, indicating a downward trend in sales. While EBITDA margin is robust at 76.9%, the overall performance is impacted by declining revenue and low net profitability.

Balance Sheet

The company's balance sheet reflects stability with a debt-to-equity ratio of 0.20, indicating low leverage. The equity ratio is high at 78.9%, suggesting strong equity financing. However, return on equity is relatively low at 0.5%, showing limited returns for shareholders. The company's asset base has decreased, which may impact future growth potential.

Cash Flow

The cash flow statement indicates significant challenges, with no operating cash flow or free cash flow reported for the latest year, which raises concerns about cash generation capacity. Operating cash flow to net income ratio and free cash flow to net income ratio are not calculable, pointing to potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.91B	13.31B	12.41B	16.04B	15.52B
Gross Profit	10.34B	10.68B	9.65B	10.38B	10.84B
EBITDA	9.94B	10.24B	-6.15B	9.37B	-5.74B
Net Income	891.00M	4.77B	-8.86B	4.39B	-7.85B
Balance Sheet
Total Assets	238.07B	245.32B	255.25B	272.27B	277.91B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.12B	1.34B	1.80B	2.26B
Total Debt	35.54B	37.42B	46.49B	49.33B	54.28B
Total Liabilities	46.09B	49.72B	60.37B	61.39B	68.50B
Stockholders Equity	187.82B	191.41B	190.36B	206.11B	204.55B
Cash Flow
Free Cash Flow	6.30B	5.82B	6.65B	7.77B	4.65B
Operating Cash Flow	6.34B	5.87B	6.69B	7.97B	4.82B
Investing Cash Flow	-174.00M	7.17B	-2.16B	199.00M	-8.13B
Financing Cash Flow	-5.96B	-13.25B	-4.90B	-8.66B	2.59B

Wharf Real Estate Investment Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1997, the sentiment is Positive. The current price of 22.3 is above the 20-day moving average (MA) of 21.03, above the 50-day MA of 19.80, and above the 200-day MA of 20.40, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 70.21 is Negative, neither overbought nor oversold. The STOCH value of 64.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1997.

Wharf Real Estate Investment Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.72%	-24.75%
1997	60 Neutral	$67.71B	75.98	0.47%	5.38%	-2.96%	-81.31%
CTRGF		$2.88B	11.38	4.96%	0.30%	―	―
HLPPF		$4.81B	16.13	1.63%	10.72%	―	―
1209	73 Outperform	HK$86.73B	22.04	22.39%	19.86%	13.34%	21.64%
2602	71 Outperform	HK$25.07B	20.15	6.76%	4.87%	7.13%	-42.14%
1821	50 Neutral	HK$54.97B	―	-10.33%	1.93%	-23.86%	-472.97%

Wharf Real Estate Investment Co Corporate Events

Wharf Real Estate Investment Co Announces Board of Directors

Wharf Real Estate Investment Co has announced the composition of its Board of Directors, highlighting the roles and functions of each member. This announcement provides insights into the company’s governance structure, which is crucial for maintaining its strategic direction and operational efficiency. The board includes a mix of executive and independent non-executive directors, ensuring a balanced approach to decision-making and oversight.

The most recent analyst rating on (HK:1997) stock is a Buy with a HK$23.26 price target. To see the full list of analyst forecasts on Wharf Real Estate Investment Co stock, see the HK:1997 Stock Forecast page.

Wharf REIC Successfully Passes All Resolutions at AGM

Wharf Real Estate Investment Company Limited held its Annual General Meeting on May 15, 2025, where all proposed resolutions were passed. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of KPMG as auditors, and granting mandates for share buy-backs and issuance. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued strategic operations in the real estate market.

The most recent analyst rating on (HK:1997) stock is a Buy with a HK$29.60 price target. To see the full list of analyst forecasts on Wharf Real Estate Investment Co stock, see the HK:1997 Stock Forecast page.

Wharf REIC Announces 2025 AGM with Key Resolutions on Agenda

Wharf Real Estate Investment Company Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 15, 2025. Key agenda items include the consideration of financial statements, re-election of directors, and re-appointment of auditors. Additionally, resolutions will be proposed to authorize the directors to purchase shares and to issue new shares, which could impact the company’s market operations and shareholder value.