Champion Real Estate Investment (2778) AI Stock Analysis

• Market Cap: $12.64B
• Dividend Yield: 6.14%
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -6.99%
• EPS Growth: -176.18%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): -0.27
• Shares Outstanding: 6,135,291,500
• 10 Day Avg. Volume: 1,483,738
• 30 Day Avg. Volume: 2,272,495
• PEG Ratio: -0.03
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 4.26
• P/FCF Ratio: 12.02
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 11.03
• Enterprise Value/Gross Profit: 17.15
• Enterprise Value/Ebitda: 34.24
• 1Y Price Target: $2.10
• Price Target Upside: -1.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$2.00 ▼(-6.54% Downside)

The overall stock score of 52 reflects significant financial challenges, particularly in profitability and revenue growth. Technical analysis shows some stability but lacks strong bullish signals. Valuation concerns are highlighted by a negative P/E ratio, though the high dividend yield offers some appeal. The absence of earnings call data and notable corporate events limits further insights.

Positive Factors

Sustainable Practices

The company's focus on sustainability and innovation positions it well for long-term growth, appealing to environmentally conscious investors and tenants.

Diverse Portfolio

A diverse property portfolio mitigates risk and enhances revenue stability by catering to various market segments, supporting long-term resilience.

Strategic Partnerships

Strategic partnerships expand market reach and investment opportunities, fostering growth and competitive advantage in the real estate sector.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in market demand and sales performance, potentially impacting long-term financial health and growth prospects.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and financial strain, which could hinder reinvestment and growth opportunities.

Debt Concerns

High debt levels relative to equity can limit financial flexibility and increase risk, potentially affecting the company's ability to capitalize on growth opportunities.

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 generates revenue through several key streams, including rental income from its portfolio of commercial and residential properties, property sales, and development fees. The company also engages in strategic partnerships and joint ventures that enhance its investment capabilities and expand its market reach. By acquiring properties in high-demand areas and improving their value through redevelopment and management, Champion Real Estate Investment maximizes returns on investment. Additionally, the company benefits from appreciation in property values, which contributes to its financial performance.

Champion Real Estate Investment Financial Statement Overview

Summary

Champion Real Estate Investment faces significant challenges, particularly in its income statement, with declining revenues and profitability. The balance sheet remains relatively stable but signals potential risks with its debt position. Cash flow generation is steady but not growing, raising concerns about future financial flexibility. Overall, the company must address its profitability and growth trajectory to improve its financial health.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The net profit margin has shifted from positive in 2023 to negative in 2024, driven by substantial net losses. This indicates challenges in maintaining operational efficiency. Additionally, the revenue growth rate has been negative over the past few years, reflecting declining sales performance.

Balance Sheet

The balance sheet reflects moderate stability with a strong equity position, but the debt-to-equity ratio remains a concern at approximately 0.33. The equity ratio is healthy, indicating a stable asset base. However, the decline in stockholders' equity over the years suggests potential erosion in asset value or increasing liabilities.

Cash Flow

The cash flow statement indicates a mixed performance. While operating cash flow remains positive, the free cash flow growth has been inconsistent. The operating cash flow to net income ratio is high due to negative net income, indicating cash generation issues relative to profits. Free cash flow remains stable, but growth is uncertain amidst declining net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.46B	2.51B	2.65B	2.85B	2.97B
Gross Profit	1.54B	1.82B	1.67B	1.79B	1.99B	2.09B
EBITDA	770.01M	-1.26B	1.74B	1.76B	1.91B	2.09B
Net Income	-2.63B	-2.09B	220.62M	-749.32M	-831.36M	-12.50B
Balance Sheet
Total Assets	59.40B	61.35B	64.47B	65.23B	67.87B	71.69B
Cash, Cash Equivalents and Short-Term Investments	739.18M	726.22M	980.58M	734.93M	1.63B	1.83B
Total Debt	14.39B	14.37B	14.51B	14.52B	15.29B	16.40B
Total Liabilities	17.92B	17.80B	18.05B	18.00B	18.91B	20.84B
Stockholders Equity	41.48B	43.55B	46.42B	47.23B	48.96B	50.86B
Cash Flow
Free Cash Flow	702.59M	872.40M	1.17B	1.29B	1.60B	1.12B
Operating Cash Flow	702.59M	872.40M	1.17B	1.29B	1.60B	1.12B
Investing Cash Flow	16.59M	65.02M	195.30M	-208.17M	1.12B	-1.10B
Financing Cash Flow	-805.53M	-1.11B	-1.13B	-2.05B	-2.63B	-91.10M

Champion Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.14
• 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 Neutral. The current price of 2.14 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 2.07, and above the 200-day MA of 1.91, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 26.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0405	64 Neutral	$4.74B	―	-4.08%	6.99%	-6.57%	-390.60%
0778	61 Neutral	$10.22B	―	-4.25%	7.10%	-4.20%	-138.86%
0823	60 Neutral	$104.29B	―	-5.19%	6.68%	2.29%	-339.64%
0808	59 Neutral	$2.16B	―	-2.04%	8.30%	-7.79%	-73.32%
0435	58 Neutral	$3.95B	―	―	8.11%	―	―
2778	52 Neutral	$12.64B	―	-6.12%	6.14%	-6.99%	-176.18%