Champion Real Estate Investment (2778) AI Stock Analysis

• Market Cap: HK$12.52B
• Dividend Yield: 10.68%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -6.99%
• EPS Growth: -176.18%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Retail
• EPS (TTM): -0.27
• Shares Outstanding: 6,135,291,500
• 10 Day Avg. Volume: 1,916,713
• 30 Day Avg. Volume: 2,484,246
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.95
• Price Target Upside: -4.46% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: HK$2.00 ▼(-1.96% Downside)

The overall stock score is primarily influenced by financial performance challenges, with declining revenues and profitability being significant concerns. Technical analysis offers some positive signals, but valuation issues due to negative earnings and a high dividend yield present risks. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Negative Factors

Earnings Outlook

Subdued earnings outlook to weigh on price performance.

Rental Income

Negative rental reversions should continue to weigh on the REIT’s rental income outlook.

Unit Price Performance

Soft office rents to weigh on unit price performance.

Champion Real Estate Investment Business Overview & Revenue Model

Company Description

Champion Real Estate Investment (2778) is a prominent player in the real estate sector, specializing in the acquisition, development, and management of commercial and residential properties. The company focuses on creating value through strategic investments in prime locations and offers a diverse portfolio that includes office buildings, retail spaces, and residential complexes. Champion Real Estate Investment is committed to sustainable practices and innovative solutions, ensuring long-term growth and profitability for its stakeholders.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.46B	2.51B	2.65B	2.85B	2.97B
Gross Profit	1.82B	1.67B	1.79B	1.99B	2.09B
EBITDA	-1.26B	1.74B	-84.12M	-150.44M	-11.76B
Net Income	-2.09B	220.62M	-749.32M	-831.36M	-12.50B
Balance Sheet
Total Assets	61.35B	64.47B	65.23B	67.87B	71.69B
Cash, Cash Equivalents and Short-Term Investments	726.22M	980.58M	734.93M	1.63B	1.83B
Total Debt	14.37B	14.51B	14.52B	15.29B	16.40B
Total Liabilities	17.80B	18.05B	18.00B	18.91B	20.84B
Stockholders Equity	43.55B	46.42B	47.23B	48.96B	50.86B
Cash Flow
Free Cash Flow	872.40M	1.17B	1.29B	1.60B	1.12B
Operating Cash Flow	872.40M	1.17B	1.29B	1.60B	1.12B
Investing Cash Flow	65.02M	195.30M	-208.17M	1.02B	-1.15B
Financing Cash Flow	-1.11B	-1.13B	-2.05B	-2.63B	-91.10M

Champion Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.04
• 50DMA: Negative
• 100DMA: Negative
• 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 2.04 is below the 20-day moving average (MA) of 2.10, below the 50-day MA of 2.16, and above the 200-day MA of 1.90, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.50 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
2778	54 Neutral	HK$12.52B	―	-6.12%	10.68%	-6.99%	-176.18%
Sector *	53 Neutral	$1.22B	3.15	-6.08%	5.81%	-8.21%	-81.31%
FRIVF	―	$1.28B	―	-4.25%	8.59%	―	―
LKREF	―	$13.87B	―	-5.19%	10.05%	―	―
PREUF	―	$270.54M	―	-2.04%	10.81%	―	―
SHTRF	―	$486.11M	31.67	1.17%	6.20%	―	―
YUXXF	―	$635.35M	―	-4.08%	9.53%	―	―