Midea Real Estate Holding Limited (3990) AI Stock Analysis

• Market Cap: HK$5.89B
• Dividend Yield: 10.24%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 9,213
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.23
• Shares Outstanding: 1,435,411,500
• 10 Day Avg. Volume: 3,002,630
• 30 Day Avg. Volume: 2,249,052
• PEG Ratio: 0.11
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -1.70
• 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: 50 Neutral
• Price Target: HK$4.50 ▲(9.76% Upside)

The overall stock score is primarily impacted by the company's financial difficulties, with declining revenue and cash flow issues being major concerns. Technical analysis suggests potential for short-term recovery, while valuation metrics indicate the stock is reasonably priced with a good dividend yield. Immediate financial improvements are necessary to enhance the stock's outlook.

Positive Factors

Strategic Partnerships

These partnerships enhance project visibility and market reach, providing a competitive edge and supporting long-term revenue stability.

Property Management Services

Diversified income streams from property management services provide stable cash flow, reducing reliance on property sales alone.

Equity Ratio

A healthy equity ratio indicates a stable financial foundation, supporting long-term solvency and operational sustainability.

Negative Factors

Declining Revenue

Declining revenue impacts profitability and limits the company's ability to invest in growth opportunities, posing a long-term risk.

High Debt Load

High leverage can strain financial flexibility, increasing vulnerability to economic downturns and affecting long-term solvency.

Cash Flow Issues

Lack of cash generation indicates potential liquidity challenges, affecting the company's ability to sustain operations and meet obligations.

Midea Real Estate Holding Limited Business Overview & Revenue Model

Company Description

Midea Real Estate Holding Limited, an investment holding company, operates as a property developer in the People's Republic of China. The company operates through four segments: Property Development and Sales; Property Management Services; Investment and Operation of Commercial Properties; and Real Estate Technologies. It develops and sells residential and industrial properties, as well as provides property management services; and invests in and operates commercial properties, such as urban complexes, community centers, long-term rental apartments, hotel, and cultural-tourism projects. The company also offers smart home and smart communities services; and process design consultation and integrated design services. In addition, it is involved in prefabricated construction. Midea Real Estate Holding Limited was founded in 2004 and is headquartered in Foshan, the People's Republic of China. Midea Real Estate Holding Limited is a subsidiary of Midea Development Holding (BVI) Limited.

How the Company Makes Money

Midea Real Estate generates revenue primarily through the sale of residential and commercial properties, which constitutes its main revenue stream. The company engages in large-scale property development projects, often selling units directly to consumers or investors. Additionally, Midea Real Estate earns income from property management services, which includes maintaining and managing the properties it develops. Another significant revenue source is real estate leasing, where the company leases commercial properties to businesses. Partnerships with local governments and other real estate entities also enhance its market presence and access to prime development locations, contributing positively to its overall earnings.

Midea Real Estate Holding Limited Financial Statement Overview

Summary

Midea Real Estate is facing significant financial challenges with declining revenue, negative profitability, and cash flow issues. The balance sheet shows some resilience due to equity, but high leverage and substantial net loss in 2024 raise concerns about future solvency and operational sustainability.

Income Statement

The income statement presents several challenges for Midea Real Estate. There is a significant net loss in 2024 after a previously profitable year in 2023, indicating potential financial distress. Revenue growth is negative, showing a decline from 2023 to 2024, which affects overall profitability metrics. The gross profit margin and EBIT margins have fallen compared to prior years, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet reflects a moderately stable financial position with substantial equity relative to total assets, resulting in a healthy equity ratio. However, the company has a high debt load, which is a concern given the current negative net income, posing a risk to financial stability if revenues continue to decline. The debt-to-equity ratio is relatively high, indicating leverage that could impact future financial flexibility.

Cash Flow

The cash flow statement reveals significant issues, with operating and free cash flows both at zero in 2024, highlighting potential cash management problems. This lack of cash generation, coupled with a large net loss, suggests that the company might face liquidity challenges moving forward. The absence of positive cash flows indicates difficulty in sustaining operations and meeting obligations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-19.41B	3.73B	73.56B	73.63B	73.70B	52.48B
Gross Profit	-374.61M	1.33B	8.48B	11.31B	13.50B	11.66B
EBITDA	866.73M	925.81M	4.62B	7.04B	8.90B	7.78B
Net Income	-2.13B	-2.06B	913.58M	1.73B	3.74B	4.33B
Balance Sheet
Total Assets	9.49B	9.72B	201.58B	251.94B	288.52B	283.75B
Cash, Cash Equivalents and Short-Term Investments	838.59M	1.03B	17.65B	27.93B	36.84B	33.26B
Total Debt	216.80M	833.67M	38.17B	48.61B	56.55B	58.88B
Total Liabilities	4.51B	4.64B	151.46B	201.62B	240.71B	243.54B
Stockholders Equity	4.84B	4.90B	25.31B	24.86B	23.51B	22.07B
Cash Flow
Free Cash Flow	1.55B	-2.37B	3.43B	2.84B	3.05B	-2.08B
Operating Cash Flow	1.59B	-2.26B	3.63B	3.04B	3.21B	-2.03B
Investing Cash Flow	-14.30B	-14.25B	4.65B	5.38B	3.44B	-7.25B
Financing Cash Flow	2.32B	-6.04M	-12.58B	-12.95B	1.06B	8.80B

Midea Real Estate Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.10
• 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:3990, the sentiment is Negative. The current price of 4.1 is below the 20-day moving average (MA) of 4.21, below the 50-day MA of 4.42, and above the 200-day MA of 3.99, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 31.31 is Neutral, neither overbought nor oversold. The STOCH value of 40.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3990.

Midea Real Estate Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	78 Outperform	HK$18.28B	11.10	15.94%	4.43%	6.54%	3.26%
2156	71 Outperform	HK$3.66B	9.37	20.32%	5.77%	-7.78%	-29.31%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1516	53 Neutral	HK$4.31B	28.03	2.77%	11.14%	-1.14%	―
6666	51 Neutral	HK$12.32B	11.49	185.17%	―	4.74%	-21.33%
3990	50 Neutral	HK$5.89B	10.68	―	10.24%	―	―

Midea Real Estate Holding Limited Corporate Events

Midea Real Estate Announces Leadership Restructuring

Midea Real Estate Holding Limited has announced significant changes in its board structure, effective October 27, 2025. Mr. Wang Dazai has been re-designated as the co-chairman, executive director, and president of the company, sharing the chairmanship with Mr. Hao Hengle. Additionally, Mr. Wang has taken over as the Authorised Representative, chairman of the Nomination Committee, and a member of the Remuneration Committee, indicating a strategic shift in leadership roles that could impact the company’s operational direction and governance.

Midea Real Estate Announces Board Composition and Committee Roles

Midea Real Estate Holding Limited has announced the composition and roles of its board of directors, highlighting the leadership of Mr. Wang Dazai and Mr. Hao Hengle as Co-Chairmen. The board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each, indicating a structured governance approach. This announcement underscores the company’s commitment to robust corporate governance, potentially enhancing its operational efficiency and stakeholder confidence.

Midea Real Estate Secures Shareholder Approval for Key Resolutions

Midea Real Estate Holding Limited held an extraordinary general meeting on October 27, 2025, where two key resolutions were passed. The first resolution involved approving a Supplemental Agreement to revise annual caps for real estate technology services, and the second resolution approved amendments to the company’s memorandum and articles of association. Both resolutions were passed with unanimous support, reflecting strong shareholder confidence and potentially impacting the company’s operational strategies and governance structure.

Midea Real Estate Announces EGM to Discuss Key Resolutions

Midea Real Estate Holding Limited has announced an Extraordinary General Meeting (EGM) scheduled for October 27, 2025, to discuss and vote on key resolutions. The resolutions include the approval of a supplemental agreement with Midea Construction (BVI) Limited and proposed amendments to the company’s memorandum and articles of association. These changes aim to enhance the company’s governance structure and operational flexibility, potentially impacting its strategic direction and stakeholder engagement.

Midea Real Estate Revises Annual Caps and Proposes Governance Amendments

Midea Real Estate Holding Limited announced a revision of the annual caps for its 2024 Real Estate Technology Service Framework Agreement with Midea Construction. This adjustment reflects the anticipated increase in service demand and requires approval from independent shareholders. Additionally, the company proposes amendments to its Memorandum and Articles of Association to allow more flexibility in board appointments and auditor vacancy fillings, subject to shareholder approval at an upcoming extraordinary general meeting.