Everbright Grand China Assets Ltd. (3699) AI Stock Analysis

• Market Cap: HK$167.73M
• Dividend Yield: 6.08%
• Average Volume (3M): 76.13K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.55
• Revenue Growth: -2.44%
• EPS Growth: 37.79%
• Country: HK
• Employees: 115
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.03
• Shares Outstanding: 441,400,000
• 10 Day Avg. Volume: 69,400
• 30 Day Avg. Volume: 76,133
• PEG Ratio: 0.19
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 3.21
• P/FCF Ratio: 17.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$0.50 ▲(31.58% Upside)

The stock's overall score is primarily influenced by its strong valuation, with a low P/E ratio and high dividend yield suggesting potential undervaluation. However, technical indicators show bearish trends, and financial performance is mixed due to declining revenue and inconsistent cash flow. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt enhances financial stability and reduces risk, providing flexibility for future investments and growth.

High Gross Profit Margins

High gross profit margins indicate efficient cost management and the ability to convert revenue into profit, supporting long-term profitability.

Positive EPS Growth

Positive EPS growth reflects improved profitability and operational efficiency, enhancing shareholder value and supporting future growth.

Negative Factors

Declining Revenue

Declining revenue trends can hinder growth prospects and reduce market competitiveness, posing a challenge to sustaining long-term profitability.

Inconsistent Cash Flow

Inconsistent cash flow generation can lead to liquidity challenges, impacting the company's ability to fund operations and invest in growth opportunities.

Revenue Growth Decline

Negative revenue growth indicates shrinking sales, which can pressure margins and limit the company's ability to scale and compete effectively.

Everbright Grand China Assets Ltd. Business Overview & Revenue Model

Company Description

Everbright Grand China Assets Ltd. (3699) is a diversified investment holding company based in Hong Kong, primarily engaged in the real estate sector. The company focuses on the development, management, and investment of properties, including residential, commercial, and mixed-use projects. In addition to real estate, Everbright Grand China Assets also invests in various sectors, leveraging its expertise to enhance asset value and generate sustainable returns for its stakeholders.

How the Company Makes Money

Everbright Grand China Assets Ltd. generates revenue primarily through the development and sale of real estate properties, as well as rental income from its investment properties. The company earns significant revenue by developing residential and commercial properties in high-demand areas and selling them at a profit. Additionally, ongoing rental income from its portfolio of managed properties provides a steady revenue stream. The firm may also engage in property management services, which contribute to its earnings. Strategic partnerships with local developers and financial institutions can further enhance its market presence and profitability, allowing for efficient capital deployment and risk management.

Everbright Grand China Assets Ltd. Financial Statement Overview

Summary

The company has a strong balance sheet with no debt and a high equity ratio, indicating financial stability. However, declining revenue and inconsistent cash flow generation are concerns that need addressing to improve financial health.

Income Statement

The company shows strong gross profit margins, with the recent figure at 100%, indicating full conversion of revenue into gross profit. However, revenue has been declining over recent years, with a notable decrease from 2019 to 2024. The net profit margin is healthy, suggesting efficient control over costs, but the downward trend in revenue growth poses a concern.

Balance Sheet

The balance sheet is robust with no total debt as of the latest year, which is a significant strength. The equity ratio is high, indicating a strong equity base relative to total assets. Return on equity has been positive, showcasing profitability and efficient use of equity. Overall, the company demonstrates financial stability with a low-risk profile.

Cash Flow

Cash flow from operations has shown inconsistency, with the latest period reporting zero, raising concerns about cash generation from core activities. Free cash flow has also seen volatility, although it was positive in prior years. These fluctuations could indicate potential liquidity risks if trends continue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.47M	45.91M	46.78M	52.30M	52.68M	51.73M
Gross Profit	46.47M	45.91M	34.62M	38.51M	39.61M	39.32M
EBITDA	16.21M	30.56M	27.70M	30.34M	45.74M	48.43M
Net Income	23.97M	25.26M	19.26M	22.05M	32.67M	33.98M
Balance Sheet
Total Assets	1.22B	1.21B	1.19B	1.18B	1.17B	1.16B
Cash, Cash Equivalents and Short-Term Investments	0.00	231.50M	222.21M	214.91M	203.77M	217.77M
Total Debt	0.00	211.00K	1.43M	2.59M	10.47M	15.60M
Total Liabilities	226.77M	217.35M	221.94M	215.97M	227.01M	229.12M
Stockholders Equity	993.95M	991.84M	972.36M	965.29M	940.73M	934.64M
Cash Flow
Free Cash Flow	14.39M	8.52M	13.52M	11.26M	18.68M	17.47M
Operating Cash Flow	14.39M	8.63M	13.91M	11.32M	18.75M	17.52M
Investing Cash Flow	-4.54M	73.44M	-359.00K	-59.60M	-1.18M	25.58M
Financing Cash Flow	-7.38M	-7.34M	-14.30M	-12.78M	-27.91M	-17.93M

Everbright Grand China Assets Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3699, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.39, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3699.

Everbright Grand China Assets Ltd. 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%
3699	64 Neutral	HK$167.73M	6.47	2.41%	6.08%	-2.44%	37.79%
0616	54 Neutral	HK$565.91M	-2.35	-5.14%	―	79.76%	88.69%
0271	48 Neutral	HK$258.06M	-2.10	-6.95%	―	-12.04%	-151.81%
0459	48 Neutral	HK$220.24M	-3.19	-6.21%	―	-11.96%	-695.83%
0183	45 Neutral	HK$96.38M	-1.52	-4.91%	―	30.19%	72.49%
0287	43 Neutral	HK$164.00M	-1.85	-8.59%	3.41%	-4.92%	-199.32%

Everbright Grand China Assets Ltd. Corporate Events

Everbright Grand China Assets Announces Board Changes

Everbright Grand China Assets Limited, a company listed on the Hong Kong Stock Exchange, has announced changes in its board of directors. Mr. David Tsoi has resigned as an independent non-executive director to focus on other business commitments, and Mr. Ho Kwai Ching Mark has been appointed to fill this position. Mr. Ho brings extensive experience in compliance and corporate strategy, having held significant roles in various financial institutions. This change is expected to bring fresh insights to the company’s board, potentially impacting its strategic direction and stakeholder relationships.

Everbright Grand China Assets Ltd. Announces Board Composition and Committee Roles

Everbright Grand China Assets Ltd. has announced the composition of its board of directors and their respective roles within the company. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Liu Jia serving as Chairman. The board has also established four committees: Audit, Remuneration, Nomination, and Investment, with various directors assigned to each committee. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and decision-making processes.