Champion Real Estate Investment (2778) AI Stock Analysis

• Market Cap: $12.40B
• Dividend Yield: 7.98%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -4.61%
• EPS Growth: -1035.60%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Retail
• EPS (TTM): -0.16
• Shares Outstanding: 6,109,591,000
• 10 Day Avg. Volume: 1,186,099
• 30 Day Avg. Volume: 2,529,549
• PEG Ratio: 0.02
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.46
• 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: $1.57
• Price Target Upside: -22.32% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$2.00 ▼(-0.99%Downside)

The overall stock score reflects significant financial challenges, with declining revenue and profitability as the most impactful factors. Technical indicators suggest bearish momentum, and valuation remains pressured by negative earnings. Although the high dividend yield offers some appeal, it is overshadowed by the overall financial instability.

Positive Factors

Asset Quality

Commercial REIT with prime assets, including Three Garden Road, home to numerous MNCs and Chinese corporates.

Dividend Yield

Champion REIT offers distribution yields of 8.8-7.7% for FY24-25.

Negative Factors

Financial Performance

FY24 distributable income fell 15% y/y to HKD958m.

Market Conditions

Subdued sentiment to weigh on unit price performance due to office supply glut and weak leasing demand.

Rental Income

Tenant sales decline translated into lower rental income at Langham Place Mall.

Champion Real Estate Investment Business Overview & Revenue Model

Company Description

Champion Real Estate Investment Trust is a trust formed to own and invest in income- producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour.

How the Company Makes Money

Champion Real Estate Investment makes money primarily through rental income from its portfolio of commercial and residential properties. The company also generates revenue through property sales, leveraging market conditions to sell assets at a profit. Additionally, Champion Real Estate Investment may engage in property development, creating new real estate projects that are either sold upon completion or added to its rental portfolio. Significant partnerships with financial institutions and real estate developers enhance its ability to finance large-scale acquisitions and development projects, contributing to its earnings. The company may also earn income from property management services, providing maintenance and operational support for third-party property owners.

Champion Real Estate Investment Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.58B	2.46B	2.51B	2.65B	2.85B	2.97B
	Gross Profit
1.71B	1.82B	1.67B	1.79B	1.99B	2.09B
	EBIT
1.71B	0.00	1.62B	1.72B	1.91B	2.09B
	EBITDA
351.41M	-1.26B	1.74B	-84.12M	-150.44M	-11.76B
	Net Income Common Stockholders
-946.79M	-2.09B	220.62M	-749.32M	-831.36M	-12.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.04B	726.22M	980.58M	734.93M	1.63B	1.83B
	Total Assets
52.44B	61.35B	64.47B	65.23B	67.87B	71.69B
	Total Debt
16.94B	14.37B	14.51B	14.52B	15.29B	16.40B
	Net Debt
14.90B	13.64B	13.61B	13.85B	13.66B	14.76B
	Total Liabilities
21.06B	17.80B	18.05B	18.00B	18.91B	20.84B
	Stockholders Equity
31.38B	43.55B	46.42B	47.23B	48.96B	50.86B
Cash Flow		Free Cash Flow
1.21B	872.40M	1.17B	1.29B	1.60B	1.12B
	Operating Cash Flow
1.21B	872.40M	1.17B	1.29B	1.60B	1.12B
	Investing Cash Flow
100.29M	65.02M	195.30M	-208.17M	1.02B	-1.15B
	Financing Cash Flow
-1.29B	-1.11B	-1.13B	-2.05B	-2.63B	-91.10M

Champion Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2778, the sentiment is Negative. The current price of 2.02 is below the 20-day moving average (MA) of 2.03, above the 50-day MA of 2.01, and above the 200-day MA of 1.78, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2778.

Champion Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.82B	10.89	0.42%	8438.96%	5.74%	-20.95%
2778	48 Neutral	$12.40B	―	-4.63%	7.98%	-4.61%	-1035.60%
FRIVF		$1.19B	―	-1.89%	8.55%	―	―
LKREF		$13.55B	―	-5.19%	6.58%	―	―
PREUF		$261.54M	―	-1.09%	9.15%	―	―
SHTRF		$467.51M	31.67	1.17%	6.09%	―	―
YUXXF		$504.54M	―	-2.11%	6.80%	―	―